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Question # 1
Zain manufacturer uses process costing to determine total cost
of production and unit cost of production. During January, 2006, it
started 15,000 units in production department – A. 1,000 units were
loss during the process – normal. 10,000 units were transferred to
department – B and 4,000 units remained in the work in process
inventory at the end of the month, which were 100% complete as to
materials and 50% complete as to labour and factory overhead. The
costs charged to department –
A in January, 2006 were as follows:
Material

Rs.42,000
Labour
Rs.15,000
Factory
overhead

Rs.24,000
Required:
Prepare cost of production report for Department – A for the
month of January, 2006
Question #
2
During April, 20,000 units were transferred in from department A
at a cost of Rs.39,000. Materials cost of Rs.6,500 and conversion
cost of Rs.9,000 were added in department B. On April 30,
department B had 5,000 units of work in process 60% complete as to
conversion as costs. Materials are added in the beginning of the
process in department B.
Required:
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