Question

2. Calculate total equity from the following information: Opening capital Rs. 1,40,000, Revenue during the year Rs. 40,000, Expenses during the year 35,000, Creditors Rs. 1,20,000, Bank overdraft 12,000, Drawings 10,000, Bills payable 22,000, loan from Bank 100000
explain it please​

Answer 1

Answer:

MS KP MM Corporation is a manufacturer that produces cosmetics. The following information has

been taken from the company’s production, sales, and cost records for the just completed year:

Production in units 100,000

Sales in units ?

Ending finished goods Inventory in units ?

Sales in Rupees Rs 2,000,000

Costs :

Other selling and administrative expenses Rs 40,000

Other factory overhead costs Rs 22,000

Selling and administrative salaries Rs 240,000

Maintenance Factory Rs 50,000

Utilities factory Rs 60,000

Building Rent (Production Uses 80% of the Space; administrative and sales

offices use the rest)

Rs 100,000

Royalty paid for use of Production patent, Rs 0.5 per unit produced) ?

Rent for special production equipment, Rs 5000 per year plus Rs 0.2 per

unit produced)

?

Insurance factory equipment Rs 20,000

Cleaning supplies, factory Rs 10,000

Depreciation Factory Rs 18,000

Advertising cost Rs 600,000

Direct labor Rs 80,000

Indirect labor Rs 20,000

Property taxes, factory Rs 10,000

Raw material purchased Rs 200,000

Inventories Beginning of year End of year

Finished goods Rs. 0 ?

Work in process Rs 50,000 Rs 60,000

Raw materials Rs 20,000 Rs 10,000

The finished goods inventory is being carried at the average unit production cost for the year. The

selling price of the product is Rs 32 per unit.

Required:

A. Prepare a Cost of Goods Manufactured Statement for the year. (2.5 Marks)

B. Compute the number of units and cost of units in the finished goods inventory at the end of the year.

(2 Marks)

C. Prepare an Income Statement for the year under Absorption costing Method. (2.5 Marks)

D. Compute the following cost: (2 Marks)

i. Prime cost

ii. Conversion cost

iii. Inventoriable cost

iv. Non-Manufacturing cost

E. Prepare T accounts of the following (1 Marks)

i. Work in process

ii. Finished goods