question archive Working is not required but please share the correct answers and formulas used
Working is not required but please share the correct answers and formulas used
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Working is not required but please share the correct answers and formulas used. Thank you!
Q.2) Muneer Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. During the year the company's Finished Goods inventory account was debited for Rs. 510,000 and credited for Rs. 480,000.
The ending balance in the Finished Goods inventory account was Rs. 44,400. At the end of the year, manufacturing overhead was overapplied by Rs.25,900. Calculate the balance in the Finished Goods inventory account at the beginning of the year was?
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Answer : Beginning Balance of Finished Inventory = Rs. 40,300
Formula : Cost of Goods Sold = Beginning Balance of Finished Inventory + Cost of Goods Manufactured ? Ending Balance of Finished Inventory
Cost of Goods Sold = Beginning Balance of Finished Inventory + (Cost of Goods Manufactured ? Manufacturing Overhead overapplied) ? Ending Balance of Finished Inventory
480,000 = Beginning Balance of Finished Inventory + ( 510,000 ? 25,900) ? 44,400
480,000 ? 484,100 + 44,400 = Beginning Balance of Finished Inventory
Beginning Balance of Finished Inventory = Rs. 40,300
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