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Assignment - 1 (MGT 402) Name: Mohsin Id: Mc190202341

The document provides financial data for Model Goods Company for the fiscal year 20X9, including costs of materials, labor, manufacturing overhead, inventory levels, and revenues. It then calculates the cost of goods manufactured and sold, gross profit, and net income by determining costs added at each stage of production and deducting expenses from gross profit. The net profit for the year is reported as Rs. 41,53,600.

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MOHSIN AKHTAR
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43 views3 pages

Assignment - 1 (MGT 402) Name: Mohsin Id: Mc190202341

The document provides financial data for Model Goods Company for the fiscal year 20X9, including costs of materials, labor, manufacturing overhead, inventory levels, and revenues. It then calculates the cost of goods manufactured and sold, gross profit, and net income by determining costs added at each stage of production and deducting expenses from gross profit. The net profit for the year is reported as Rs. 41,53,600.

Uploaded by

MOHSIN AKHTAR
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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2.5+4.

5+1+1+4=13/20

Assignment - 1 (MGT 402)


NAME: MOHSIN ID: Mc190202341
The accountant of Model Goods Company prepared the following data for its financial year
20X9:

Particular Rs. Particular Rs.


Sandpaper 32,000 Leasing costs — plant 384,000
Materials handling 320,000 Depreciation — equipment 224,000
Coolants & lubricants 22,400 Property taxes — equipment 32,000
Indirect manufacturing 275,200 Fire insurance — equipment 16,000
labor
Direct manufacturing labor 2,176,000 Direct material purchases 3,136,000
Direct materials, 1/1/X9 384,000 Direct materials, 12/31/X9 275,200
Finished goods, 1/1/X9 672,000 Sales revenue 12,800,000
Finished goods, 12/31/X9 1,280,000 Sales commissions 640,000
Work-in-process, 1/1/X9 96,000 Sales salaries 576,000
Work-in-process, 12/31/X9 64,000 Advertising costs 480,000
Administration costs 800,000

a) The amount of direct materials used


Particulars Rs
Opening stock of raw material 384,000

+ Purchases 3,136,000
Material available for use 3,52,0000
- Closing stock of raw material 275,200
Material used 3,244,800

b) The manufacturing costs added to WIP

Particulars Rs FOH
Sandpaper 32,000
Material used 3,244,800
coolants 22,400
Direct labour 2,176,000 indirect labor 275,200
Prime cost 5,420,800 depreciation 224,000
FOH 921,600 Materials handling 320,000
Total of current 6342400 property tax 32000
manufacturing cost Fire insurance 16000
Total 921,600
c) Cost of goods manufactured

Particulars Rs
Total current manufacturing cost 6342,400
+ Opening W.I.P 96,000
_Closing W.I.P 64,000
Cost of goods manufactured 63,74400

d) Cost of goods sold

Particulars Rs
Cost of goods manufactured 63,74400
+ Opening finished goods 672,000

_ Closing finished goods 1,280,000


Cost of goods sold 57,66,400

e) Gross profit

Particulars Rs
Sales 12,800,000
_ Cost of goods sold 57,66,400
Gross profit 70,33600

f) Net income.
Operating expenses
Admin expense 800,000
Advertising expense 480,000
Sales salaries 576000
Sales commissions 640000
Leasing costs 384000
TOTAL 28,80,000
Particulars Rs
Gross profit 70,33600
_ Operating expenses 28,80,000
Net profit 41,53,600

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