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CMA Assignment 2

1. The document provides financial information about direct material costs, direct labor costs, work-in-progress, finished goods inventory, cost of goods manufactured, units produced and sold, revenues, expenses and profit for a manufacturing company over multiple periods. 2. It includes income statements, calculations of unit costs, inventory levels and material consumption. 3. The company produced 100,000 units, used 200,000kg of material, with a cost of goods manufactured of $193,000, revenue of $436,800 and an operating income of $51,920.

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CH NAIR
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73 views

CMA Assignment 2

1. The document provides financial information about direct material costs, direct labor costs, work-in-progress, finished goods inventory, cost of goods manufactured, units produced and sold, revenues, expenses and profit for a manufacturing company over multiple periods. 2. It includes income statements, calculations of unit costs, inventory levels and material consumption. 3. The company produced 100,000 units, used 200,000kg of material, with a cost of goods manufactured of $193,000, revenue of $436,800 and an operating income of $51,920.

Uploaded by

CH NAIR
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Description Amount

1st jan
Direct Material Cost
Initial Materials 160000
Materials Purchased 1600000
Direct Labour 1800000
Prime Cost 2940000
DM 1140000
Final Materials Inventory 620000 DM As on 28th Feb
Indirect Cost (Factory OH) 1200000
CC 3000000
Gross Factory Cost 4140000
COGS 4000000
Cost of goods available for sale 4500000
Final Inventory 500000
Finished Good
Initial FG 300000
Final FG 500000 FG Stock As on 28th Feb

WIP
Initial WIP 340000
Cost of production / Net Factory 4200000
WIP 280000
Final WIP Stock 280000 WIP stock As on 28th
Variable Fixed Total
Direct Material 140,000 140,000
Direct Labour 30,000 30,000
Plant energy cost 5,000 5,000
Indirect Labour 10,000 16000 26,000
Indirect other cost 8,000 24000 32,000
Cost of goods manufactured 193,000 40,000 233,000

Average unit manufacturing cost 2.33


Finished goods inventory in units 9,000

Units sold 91,000


Selling price per unit 5

Revenue 436,800

Cost of goods manufactured 193,000


Cost of goods available for sale 193,000
Finished goods inventory 20,970
Cost of units sold 172,030

Gross Margin 264,770


Administration cost 50,000
Sales and distribution cost 162,850

Operating income 51,920

Direct Material cost per unit 0.70


Period ending inventory cost 1,400.00
Units produced 100,000
kg of material used 200,000
Variable Fixed Total
Direct Material 140,000 140,000
Direct Labour 30,000 30,000
Plant energy cost 5,000 5,000
Indirect Labour 10,000 16000 26,000

Cost of goods manufactured 185,000 16,000 201,000

Average unit manufacturing cost 2.01

Finished goods inventory at end 9,000


Units sold 91,000
Selling price per unit 5

Revenue 436,800

Cost of goods manufactured 193,000


Cost of goods available for sale 193,000
Finished goods inventory 20,970
Cost of units sold 172,030

Gross Margin 264,770


Indirect other manufacturing cost 32,000 32000
Administration cost 50,000
Sales and distribution cost 162,850 162850

Operating income 19,920


Units produced 100,000
KG of material consumed 200,000
Description Amount
Start - 1st Sep
DM 900
WIP 2000
FG 1750

END- 30th Sep


DM 750
WIP 1500
FG 1250

Direct Material
Purchased 3600
Used 3750

Variable Manufacturing OH 2500


Fixed Manufacturing OH 2300
Total Manufacturing OH 4800

Total Manufacturing Cost 16000

Direct Labor 7450

Cost of goods manufactured 16500

Cost of goods sold 17000

Cost of goods availabel for sale 18250


Direct materials+ Direct Labour + Production OH

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