Reference no: EM132634498

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 adnlinistrative expenses Rs 40,000

Other factory overhead costs Rs 22,000

selling and aministrative salaries Rs 240,00

Maintenance Factory Rs 50,000

utilities factory Rs60,000

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 0.2 per unit produced

Insurance factory equipment 20,000

Cleaning supplies, factory 10,000

Depreciation Factory 18,000.

Advertising cost Rs 600,000

Direct Labour Rs 80,000

Indirect labor Rs 20,000

Property taxes, factory Rs 10,000

Raw material purchased Rs 200,000

finished goods

begining inventory Rs. 0 and ending inventory ?

work in process begining inventory Rs.v50000 and ending inventory Rs. 60000

Raw material begining inventory Rs. 20000 and ending inventory Rs.10000

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.

Question 1: Find Cost of Goods Manufactured Statement for the year.

Question 2: Compute the number of units and cost of units in the finished goods inventory at the end of the year.

Question 3: Find an Income Statement for the year under Absorption costing Method.

Question 4: Find the following cost.

i. Prime cost ii. Conversion cost iii. Inventoriable cost iv. Non-Manufacturing cost

Question 5: Make T accounts of the following

Work in process and Finished goods