question archive The following balances have been taken from the general ledger for Pak Fan Manufacturing Company: Raw Materials Inventory (1-12-2014) Raw Material Purchases Raw Materials Returns Carriage Inwards Direct Labor Indirect Labor Depreciation (Machinery)
The following balances have been taken from the general ledger for Pak Fan Manufacturing Company: Raw Materials Inventory (1-12-2014) Raw Material Purchases Raw Materials Returns Carriage Inwards Direct Labor Indirect Labor Depreciation (Machinery)
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The following balances have been taken from the general ledger for Pak Fan Manufacturing Company: Raw Materials Inventory (1-12-2014) Raw Material Purchases Raw Materials Returns Carriage Inwards Direct Labor Indirect Labor Depreciation (Machinery). Hear, Light and Power Factory Rent and Taxes Factory Repairs Expense Foreman's Salary Raw Material (31-12-2014) Work in Process (1-12-2014 Rs. 40,000 190,000 9,000 15,000 255,000 60,000 30,000 25,000 31,000 19,000 25,000 58,000 63,000 The foreman estimates that Rs. 32,000 of Raw Materials and Rs. 25,000 of Direct Labor are to be allocated to the unfinished goods in process on 31-12-2014. Compute the cost of December 31, 2014 inventory of Goods in Process.
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Cost of inventory in process= opening inventory+ purchase+ direct expenses - closing inventory
| Particulars | amount |
| Raw material opening inventory | 40000 |
| Raw material purchase less return | 181000 |
| Add: carriage inwards | 15000 |
| direct labour | 255000 |
| foreman salary | 25000 |
| less: closing raw material (58000-32000) | ( 26000) |
| work in progress | (63000) |
| Direct labour | (25000) |
| cost of inventory in process | 402000 |
