question archive The following transactions relate to the AKHTER CORP
The following transactions relate to the AKHTER CORP
Subject:AccountingPrice:2.84 Bought3
The following transactions relate to the AKHTER CORP. for the month of November 2015:
Product - A
Product – B
Production
10,000 units
8,000 units
Beginning Inventory
1,000 units
900 units
Ending Inventory
2,000 units
100 units
Unit Cost applicable to inventories and Production
Direct Material
Rs. 4 per unit
Rs. 3 per unit
Direct Labour
Rs. 10 per unit
Rs. 20 per unit
Factory Overhead
Rs. 7 per unit
Rs. 14 per unit
Actual FOH was Rs. 182,400, under or over applied factory overhead is to be adjusted in Cost of Goods Sold.
Calculate Prime Cost.
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| Particulars | Product A | Product B |
| Direct material cost | $ 40,000 | $ 24,000 |
| Direct labour cost | $ 100,000 | $ 160,000 |
| Prime cost | $ 140,000 | $ 184,000 |
