B.COM – II – ADVANCED AND COST ACCOUNTINGa4accounting.weebly.com/uploads/7/1/2/8/7128209/b.com_-_ii_-_2000rp.pdfDec. 31 Net loss 12,400 June 8 Merchandise shipments 36,000 Dec

The workings under the heading of “Additional Working” are not required according to the requirement of the examiner. These are only for understanding the solutions. For more help, visit www.a4accounting.net

2000

Compiled and Solved by:

S.Hussain

B.COM – II – ADVANCED AND COST ACCOUNTING

REGULAR /

PRIVATE

http://www.a4accounting.net/

Compiled & Solved by: S.Hussain [email protected]

B . C o m – I I – A d v a n c e d a n d C o s t A c c o u n t i n g – 2 0 0 0 ( R e g / P r i )

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ADVANCED AND COST

ACCOUNTING – 2000

REGULAR / PRIVATE Instructions: Attempt any five questions, three from Section – A and two from Section – B.

SECTION “A” (ADVANCED ACCOUNTING)

Q.No.1 COMPANY ACCOUNTING – ABSORPTION GIVEN The following balances appear in the balance sheet of Malir Company Limited as on

November 30, 2000. Cash Rs.150,000 Accounts receivable 550,000 Office equipment 250,000 Retained earnings 200,000 ------------------ Allowance for bad debts Rs.20,000 Allowance for depreciation 30,000 Accounts payable 100,000 Share capital 1,000,000 Malir Company Ltd. was absorbed by Karachi Company Ltd. on the following terms:

1) All assets (except cash) to be taken over at book values. 2) Purchase consideration to be paid in cash Rs.200,000 and shares Rs.500,000.

Malir Company Ltd. paid Rs.95,000 in full settlement of accounts payable, and Rs.15,000 as liquidation expenses.

Shares and remaining cash were distributed amongst the shareholders of Malir Company Ltd. REQUIRED

Prepare entries in general journal of: (a) Malir Company Ltd. and (b) Karachi Company Ltd. SOLUTION 1 (a) Computation of Purchase Consideration: Ordinary shares 500,000 Cash 200,000

Purchase consideration 700,000

MALIR COMPANY LTD.

GENERAL JOURNAL

Date Particulars P/R Debit Credit

1 Receivable from Karachi Company Ltd. 700,000 Realization 700,000 (To record the purchase consideration)

2 Shares – in 500,000 Cash 200,000 Receivable from Karachi Company Ltd. 700,000 (To record the shares and cash received from Karachi

Company Ltd.)



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3 Realization 770,000 Accounts receivable 550,000 Office equipment (250,000 – 30,000) 220,000 (To record the closing of assets accounts)

4 Allowance for bad debts 20,000 Realization 20,000 (To record the closing of liability account)

5 Accounts payable 100,000 Realization 5,000 Cash 95,000 (To record the payment of accounts payable)

6 Realization 15,000 Cash 15,000 (To record the liquidation expenses paid)

7 Share capital 1,000,000 Retained earnings 200,000 Payable to shareholders 800,000 (To record the closing of shareholders’ equity)

8 Payable to shareholders 60,000 Realization 60,000 (To record the closing of realization account)

9 Payable to shareholders 740,000 Shares – in 500,000 Cash 240,000 (To record the cash and shares issued to the

shareholders)

Realization

3 Other assets 770,000 1 Receivable 700,000 6 Cash 15,000 4 Allowance for bad debts 20,000 5 Accounts payable 5,000 8 Payable to shareholders 60,000

785,000 785,000

SOLUTION 1 (b) KARACHI COMPANY LTD.

GENERAL JOURNAL


1 Accounts receivable 550,000 Office equipment 220,000 Capital reserve 50,000 Allowance for bad debts 20,000 Payable to Malir Company Ltd. 700,000 (To record the assets and liabilities taken over)

2 Payable to Malir Company Ltd. 700,000 Share capital 500,000 Cash 200,000 (To record the shares and cash issued)



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Q.No.2 BRANCH ACCOUNTING GIVEN The following home office a/c with selected entries is taken from the Pindi branch ledger:

HOME OFFICE

1999 1999 March 5 Returns against Jan. 1 Balance 180,000 Merchandise shipments 9,000 Feb. 6 Merchandise shipments 60,000 Dec. 31 Net loss 12,400 June 8 Merchandise shipments 36,000 Dec. 10 Corrected overstated

bad debts for 1998 5,000

Pindi branch reported inventories at billed price: at Jan. 1, 1999 Rs.24,000/= and at December 31, 1999 Rs.18,000/=. The home office bills merchandise to its branches at 20% above cost. REQUIRED Hive all reciprocal entries in the home office general journal including adjusting entry to record profit from allowance for overvaluation for 1999, and closing entry. Entries without supporting computations are not acceptable. SOLUTION 2

HOME OFFICE GENERAL JOURNAL


6 Feb Pindi branch 60,000 1999 Merchandise supplied 50,000 Allowance for overvaluation 10,000 (To record the merchandise supplied to branch)

5 Mar Merchandise supplied returned 7,500 1999 Allowance for overvaluation 1,500 Pindi branch 9,000 (To record the merchandise returned by branch)

8 June Pindi branch 36,000 1999 Merchandise supplied 30,000 Allowance for overvaluation 6,000 (To record the merchandise supplied to branch)

10 Dec Pindi branch 5,000 1999 Retained earnings 5,000 (To correct the overstated bad debts)

31 Dec Profit and loss account 12,400 1999 Pindi branch 12,400 (To record the net loss reported by branch)

31 Dec Allowance for overvaluation 15,500 1999 Profit and loss account 15,500 (To adjust the allowance for overvaluation)

31 Dec Profit and loss account 3,100 1999 Retained earnings 3,100 (To close the profit and loss account)



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Computation of Allowance for Overvaluation:

Particulars Billed Cost Allowance for over valuation

Merchandise inventory opening (24,000 x 20/120) 24,000 20,000 4,000 Add: Merchandise supplied (60,000 x 20/120) 60,000 50,000 10,000 Add: Merchandise supplied (36,000 x 20/120) 36,000 30,000 6,000

120,000 100,000 20,000 Less: Merchandise returned (9,000 x 20/120) (9,000) (7,500) (1,500)

Unadjusted allowance for overvaluation 111,000 92,500 18,500 Less: Merchandise inventory ending (18,000 x 20/120) (18,000) (15,000) (3,000)

Adjusted allowance for overvaluation 93,000 77,500 15,500

Q.No.3 INSTALLMENT SALES GIVEN Al-Fazal Manufacturing Co. sells its finished products for cash, on credit and on installment. Accidently, some water was spread on the accounting records of installment sales and some of the pages were smeared. After drying, only the following portion is readable:

January 1, 1999 Installment accounts receivable 1998 Rs.80,000 Deferred gross profit 1998 Rs.32,000

December 31, 1999 (Before Adjustment)

Installment accounts receivable 1998 Rs.20,000 Deferred gross profit 1998 Rs.30,000 Installment accounts receivable 1999 Rs.86,000 Deferred gross profit 1999 Rs.90,000 During 1999, installment sales were made at 45% gross profit rate. REQUIRED

1. Reconstruct in general journal form as many summary entries as possible for 1999 under installment method including adjusting and closing entries. Show necessary supporting computations.

2. Give an entry to record repossession assuming that the repossessed merchandise was recorded at its book value.

SOLUTION 3 (i) Computation of Installment Sales: Installment sales = Deferred gross profit (1999)

Deferred gross profit rate (1999) Installment sales = 90,000 x 100

45 Installment sales = 200,000 Computation of Cost of Installment Sales: Installment sales 200,000 Less: Unrealized gross profit (1999) (90,000)

Cost of installment sales 110,000



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Computation of Unrealized Gross Profit Rate (DGP%): Unrealized gross profit rate (1998) = Unrealized gross profit (beg) x 100

Installment accounts receivable (beg) Unrealized gross profit rate (1998) = 32,000 x 100

80,000 Unrealized gross profit rate (1998) = 40% Computation of Cash Collection: Cash collection (1998) = Installment A/R (beg) – Installment A/R (end) – Installment A/R cancelled Cash collection (1998) = 80,000 – 20,000 – 5,000 Cash collection (1998) = 55,000 Cash collection (1999) = Installment sales – Installment A/R (end) Cash collection (1999) = 200,000 – 86,000 Cash collection (1999) = 114,000 Computation of Realized Gross Profit: Realized gross profit = Cash collection X DGP% Realized gross profit (1998) = 55,000 x 40% 22,000 Realized gross profit (1999) = 114,000 x 45% 51,300

Total realized gross profit = 73,300

Computation of Gain or Loss on Repossession: Installment accounts receivable cancelled (1998) (2,000 x 100/40) 5,000 Less: Unrealized gross profit (32,000 – 30,000) or (5,000 x 40%) (2,000)

Book value 3,000 Less: Merchandise repossessed at fair market value (3,000)

NIL

AL-FAZAL MANUFACTURING CO.

GENERAL JOURNAL


1 Installment accounts receivable (1999) 200,000 Installment sales 200,000 (To record the good sold on installment basis)

2 Cash 169,000 Installment accounts receivable (1998) 55,000 Installment accounts receivable (1999) 114,000 (To record the cash collected on installment basis)

AL-FAZAL MANUFACTURING CO.

ADJUSTING ENTRIES


1 Cost of installment sales 110,000 Merchandise 110,000 (To record the cost of installment sales)



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2 Installment sales 200,000 Cost of installment sales 110,000 Unrealized gross profit (1999) 90,000 (To adjust the unrealized gross profit)

3 Unrealized gross profit (1998) 22,000 Unrealized gross profit (1999) 51,300 Realized gross profit 73,300 (To adjust the realized gross profit)

AL-FAZAL MANUFACTURING CO. CLOSING ENTRIES


1 Realized gross profit 73,300 Expense and revenue summary 73,300 (To close the income account)

SOLUTION 3 (ii)

AL-FAZAL MANUFACTURING CO. GENERAL JOURNAL


1 Merchandise repossessed 3,000 Unrealized gross profit (1998) 2,000 Installment accounts receivable (1998) 5,000 (To adjust the repossession of merchandise)

Q.No.4 FUND FLOW ANALYSIS – CASH AND WORKING CAPITAL CONCEPT GIVEN The following data are taken from the income statement and balance sheets of Shahdadpur Ltd.

Dec. 31, 1999 Dec. 31, 1998 Net income Rs.400,000 Depreciation expense 120,000 Amortization of intangible assets 40,000 Gain on sale of plant assets 80,000 Loss on sale of investments 35,000 Balance Sheets: Cash Rs.107,000 Rs.45,000 Accounts receivable 335,000 380,000 Inventory 503,000 575,000 Prepaid expenses 22,000 10,000 Accounts payable (to merchandise supplies) 379,000 410,000 Accrued expenses 180,000 155,000 REQUIRED

(a) Compute: (i) Working capital provided by operating activities. (ii) Net cash flow from operating activities.

(b) Prepare a schedule showing changes in working capital during 1999.



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SOLUTION 4 (a) SHAHDADPUR LTD.

WORKING CAPITAL BY OPERATING ACTIVITIES FOR THE PERIOD ENDED 31 DECEMBER 1999

Net income 400,000 Adjustments: Add: Depreciation expense 120,000 Add: Amortization of intangible assets 40,000 Add: Loss on sale of investments 35,000 Less: Gain on sale of plant assets (80,000)

Working capital provided by operating activities 515,000

SHAHDADPUR LTD.

CASH FLOW FROM OPERATING ACTIVITIES FOR THE PERIOD ENDED 31 DECEMBER 1999

Net profit 400,000 Adjustments: Add: Depreciation expense 120,000 Add: Amortization of intangible assets 40,000 Add: Loss on sale of investments 35,000 Less: Gain on sale of plant assets (80,000)

Profit before changes in working capital 515,000 Add: Decrease in accounts receivable 45,000 Add: Decrease in merchandise inventory 72,000 Less: Increase in prepaid expenses (12,000) Less: Decrease in accounts payable (31,000) Add: Increase in accrued expenses 25,000

Net cash flow from operating activities 614,000

SOLUTION 4 (b)

SHAHDADPUR LTD. STATEMENT OF CHANGES IN WORKING CAPITAL

FOR THE PERIOD ENDED 31 DECEMBER 1999

Particular 1999 1998 Changes in Working

Capital

Current Assets: Cash 107,000 45,000 62,000 Accounts receivable 335,000 380,000 (45,000) Merchandise inventory 503,000 575,000 (72,000) Prepaid expenses 22,000 10,000 12,000

Total current assets 967,000 1,010,000 (43,000) Less: Current Liabilities: Accounts payable (379,000) (410,000) 31,000 Accrued expenses (180,000) (155,000) (25,000)

Total current liabilities (559,000) (565,000) 6,000

Decrease in working capital 408,000 445,000 (37,000)



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Q.No.5 ANALYSIS OF FINANCIAL STATEMENTS GIVEN The following items are taken from the financial statements of Imam Company Ltd. for the year ended December 31, 1999: Cash Rs.108,000 Accounts receivable (net) 300,500 Merchandise inventory 226,000 Accrued interest on notes receivable 4,500 Accounts payable 108,000 10% notes receivable (current) 16,500 Advances from customers 1,500 Ordinary shares capital 400,000 Premium on ordinary shares 120,000 Retained earnings 280,000 Sales (including cash sales of Rs.20,500/=) 1,220,500 Gross profit 520,500 Net income 250,000 Cash dividend declared 120,000 Operating expenses 400,000 Other information is as under:

i) Shareholders’ equity (opening) was Rs.760,000/=. ii) Market price per share is Rs.42/=. iii) Merchandise inventory (opening) was Rs.90,000/=. iv) Accounts receivable (opening) was Rs.102,500/=.

REQUIRED (i) Operating expenses rate (ii) Current ratio (iii) Quick ratio (iv) Dividend yield (v) Earnings per share (vi) Price earnings ratio (vii) Rate of return on ordinary shares (viii) Accounts receivable turnover ratio (ix) Inventory turnover ratio (x) Gross profit ratio

SOLUTION 5 Computation of Current Assets: Cash 108,000 Accounts receivable 300,500 Accrued interest on notes receivable 4,500 10% Notes receivable 16,500

Total quick assets 429,500 Merchandise inventory 226,000

Total current assets 655,500

Computation of Current Liabilities: Accounts payable 108,000 Advances from customers 1,500 Cash dividend declared 120,000

Total current liabilities 229,500



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Computation of Dividend per Share: Dividend per share = Dividend declared

Number of shares Dividend per share = 120,000

(400,000 / 10) Dividend per share = 120,000

40,000 Dividend per share = Rs.3 Computation of Cost of Goods Sold: Net sales 1,220,500 Less: Gross profit (520,500)

Cost of goods sold 700,000

(i) Operating Expenses Rate:

Operating expenses rate = Operating expenses X 100

Net sales Operating expenses rate = 400,000 X 100

1,220,500 Operating expenses rate = 32.77%

(ii) Current Ratio: Current ratio = Total current assets

Total current liabilities Current ratio = 655,500

229,500 Current ratio = 2.86 : 1

(iii) Quick Ratio: Quick ratio = Total quick assets

Total current liabilities Quick ratio = 429,500

229,500 Quick ratio = 1.87 : 1

(iv) Dividend Yield: Dividend yield = Dividend per share

Market price per share Dividend yield = 3

42 Dividend yield = 0.07

(v) Earnings per Share: Earnings per share = Operating income

Number of shares Earnings per share = 250,000

40,000 Earnings per share = Rs.6.25



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(vi) Price Earnings Ratio: Price earnings ratio = Market price per share

Earnings per share Price earnings ratio = 42

6.25 Price earnings ratio = Rs.6.72

(vii) Rate of Return on Ordinary Shares: Rate of return on ordinary shares = Net income X 100

Ordinary share capital Rate of return on ordinary shares = 250,000 X 100

400,000 Rate of return on ordinary shares = 62.5%

(viii) Accounts Receivable Turnover Ratio: Receivable turnover in times = Net credit sales

Average receivable Receivable turnover in times = 1,220,500 – 20,500

(102,500 + 300,500) / 2 Receivable turnover in times = 1,200,000

201,500 Receivable turnover in times = 5.96 times Receivable turnover in days = 365

Receivable turnover in times Receivable turnover in days = 365

5.96 Receivable turnover in days = 61 days

(ix) Inventory Turnover Ratio: Inventory turnover in times = Cost of goods sold

Average inventory Inventory turnover in times = 700,000

(90,000 + 226,000) / 2 Inventory turnover in times = 700,000

158,000 Inventory turnover in times = 4.43 times Inventory turnover in days = 365

Inventory turnover in times Inventory turnover in days = 365

4.43 Inventory turnover in days = 82 days

(x) Gross Profit Ratio: Gross profit ratio = Gross profit X 100

Net sales Gross profit ratio = 520,500 X 100

1,220,500 Gross profit ratio = 42.65%



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SECTION “B” (COST ACCOUNTING) Q.No.6 ACCOUNTING FOR MANUFACTURING OPERATIONS GIVEN Microsoft Company produces a single product. The following information has been taken from the company’s records for the year 1999: Production in units 30,000 Sales in units ? Ending finished goods in units ? Sales (Rs.25/- per unit) 650,000 Costs: Advertising Rs.90,000 Direct labour 160,000 Raw materials purchased 80,000 Building rent (production uses 80% of the space, administration & sales offices uses the rest) 50,000 Utilities, factory 35,000 Maintenance, factory 25,000 Depreciation on factory equipment is estimated at Rs.0.10 per unit produce ? Selling and administrative salaries 100,000 Other factory overhead costs 11,000 Other selling and administrative expenses 20,000 Inventories Jan. 1, 1999 Dec. 31, 1999 Raw material Rs.20,000 Rs.10,000 Work in process 30,000 40,000 Finished goods --- ? The finished goods inventory is being carried at average unit production cost for the year. REQUIRED

i) Prepare statement of cost of goods manufactured for the year. ii) Compute the following:

a) The number of units in finished goods inventory at December 31. b) The cost of the units in finished goods inventory at December 31.

iii) Prepare an income statement for the year. SOLUTION 6 (i)

MICROSOFT COMPANY STATEMENT OF COST OF GOODS MANUFACTURED

FOR THE PERIOD ENDED 31 DECEMBER 1999 Direct Materials: Raw materials (opening) 20,000 Add: Purchases of raw materials 80,000

Raw materials available for use 100,000 Less: Raw materials (ending) (10,000)

Raw materials used 90,000 Add: Direct labour 160,000

Prime cost 250,000 Add: Factory Overheads: Building rent (50,000 x 80%) 40,000 Utilities – factory 35,000 Maintenance – factory 25,000 Depreciation expense – factory (30,000 x 0.10) 3,000



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Other factory overhead costs 11,000

Total factory overheads 114,000

Total manufacturing cost 364,000 Add: Work – in – process (opening) 30,000

Total work – in – process during the period 394,000 Less: Work – in – process (ending) (40,000)

Cost of goods manufactured 354,000

SOLUTION 6 (ii) Computation of Number of Finished Goods Ending Inventory in Units: Units produces 30,000 Less: Units sold (650,000 / 25) (26,000)

Finished goods ending inventory in units 4,000

Computation of Unit Cost: Average unit cost = Cost of goods manufactured

Number of units manufactured Average unit cost = 354,000

30,000 Average unit cost = 11.80 Computation of Cost of Finished Goods Ending Inventory: Finished goods ending inventory = Finished goods ending in units x Average unit cost Finished goods ending inventory = 4,000 x 11.80 Finished goods ending inventory = 47,200 SOLUTION 6 (iii)

MICROSOFT COMPANY INCOME STATEMENT

FOR THE PERIOD ENDED 31 DECEMBER 1999 Sales 650,000 Less: Cost of Goods Sold: Cost of goods manufactured 354,000 Less: Finished goods (ending) (47,200)

Cost of goods sold (306,800)

Gross profit 343,200 Less: Operating Expenses: Advertising expense 90,000 Building rent (50,000 x 20%) 10,000 Selling and administrative salaries 100,000 Other selling and administrative expenses 20,000

Total operating expenses (220,000)

Net profit 123,200



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Q.No.7 JOB ORDER COST SYSTEM GIVEN Sunshine Co. uses a job order cost accounting system. The following information was provided for the month of March:

a) Purchases of direct materials during the month amounted to Rs.59,700/= on account. b) Materials requisitions issued by the production department during the month total to

Rs.56,200/=. c) Time cards of direct workers show 2,000 hours worked on various jobs during the month, for

total direct labour cost of Rs.30,000/=. d) Direct workers were paid Rs.26,300/= in March. e) Actual overhead costs for the month amounted to Rs.34,900/=. f) Overhead is applied to jobs at a rate of Rs.18/= per direct labour hour. g) Jobs with total accumulated cost of Rs.116,000/= were completed during the month. h) On March 31, finished goods inventory was valued at Rs.22,000/=. i) During March finished goods were sold for Rs.128,000.= on account.

REQUIRED Prepare general journal entries for each of the above transactions (including cost of goods sold and closing of factory overhead account). SOLUTION 7

SUNSHINE CO. GENERAL JOURNAL


1 Raw material 59,700 Accounts payable 59,700 (To record the purchase of raw material)

2 Work in process 56,200 Raw material 56,200 (To record the raw material used)

3 Work in process 30,000 Accrued payroll 30,000 (To record the direct labour assigned)

4 Accrued payroll 26,300 Cash 26,300 (To record the direct labour paid)

5 Factory overhead 34,900 Accounts payable 34,900 (To record the factory overhead cost incurred)

6 Work in process (2,000 x 18) 36,000 Factory overhead applied 36,000 (To record the applied factory overhead)

7 Finished goods 116,000 Work in process 116,000 (To record the goods completed and transferred to

finished goods)

8 Cost of goods sold (116,000 – 22,000) 94,000 Finished goods 94,000 (To record the cost of goods sold)



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9 Accounts receivable 128,000 Sales 128,000 (To record the goods sold to customers on account)

10 Over applied factory overhead 1,100 Cost of goods sold 1,100 (To close the factory overhead account)

Factory Overhead

5 Accounts payable 34,900 6 Work in process 36,000 10 Cost of goods sold 1,100

36,000 36,000

Q.No.8 STANDARD COSTS GIVEN Top Products Co. uses standard cost system. Following data are taken from its cost accounting records: Standard Actual Raw material Rate per unit Rs.6.

Total cost Rs.54,000/=. Rate per unit Rs.6.2.

Quantity 9,200 units. Direct labour Wage per hour Rs.11.

Total labour hours 10,000. Wage per hour Rs.10.50.

Total labour cost Rs.110,250/=. Factory overhead 80% of direct labour cost. Total cost Rs.90,000/=. REQUIRED

a) Calculate: (i) Materials price variance. (ii) Materials quantity variance. (iii) Labour wage variance. (iv) Labour efficiency variance. (v) FOH variance.

b) Give entries in general journal to record actual and standard costs of direct materials, direct labour and FOH and their variance.

SOLUTION 8 (a) Computation of Material Price Variance: Material price variance = (Standard price – Actual price) x Actual quantity Material price variance = (6 – 6.2) x 9,200 Material price variance = (1,840) (Unfavourable) Computation of Material Quantity Variance: Material quantity variance = (Standard quantity – Actual quantity) x Standard price Material quantity variance = [(54,000 / 6) – (9,200] x 6 Material quantity variance = (9,000 – 9,200) x 6 Material quantity variance = (1,200) (Unfavourable) Computation of Labour Wage Variance: Labour wage variance = (Standard price – Actual price) x Actual hours Labour wage variance = (11 – 10.5) x (110,250 / 10.5) Labour wage variance = 0.5 x 10,500 Labour wage variance = 5,250 Favourable



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Computation of Labour Efficiency Variance: Labour efficiency variance = (Standard hours – Actual hours) x Standard price Labour efficiency variance = (10,000 – 10,500) x 11 Labour efficiency variance = (5,500) (Unfavourable) Computation of Factory Overhead Variance: Factory overhead variance = Standard cost – Actual cost Factory overhead variance = [(10,000 x 11) x 80%] – 90,000 Factory overhead variance = (110,000 x 80%) – 90,000 Factory overhead variance = 88,000 – 90,000 Factory overhead variance = (2,000) (Unfavourable) SOLUTION 8 (b)

TOP PRODUCTS CO. GENERAL JOURNAL


1 Work in process 54,000 Material price variance 1,840 Material quantity variance 1,200 Raw material (9,200 x 6.2) 57,040 (To record the material price and quantity variance)

2 Work in process (10,000 x 11) 110,000 Labour efficiency variance 5,500 Labour wage variance 5,250 Accrued payroll 110,250 (To record the labour rate and efficiency variance)

3 Work in process (110,000 x 80%) 88,000 Factory overhead variance 2,000 Factory overhead 90,000 (To record the factory overhead variance)

TOP PRODUCT CO. CLOSING ENTRIES


1 Labour wage variance 5,250 Cost of goods sold 5,290 Material price variance 1,840 Material quantity variance 1,200 Labour efficiency variance 5,500 Factory overhead variance 2,000 (To close the all variances)

Documents

B.COM – II – ADVANCED AND COST ACCOUNTINGa4accounting.weebly.com/uploads/7/1/2/8/7128209/b.com_-_ii_-_2000rp.pdfDec. 31 Net loss 12,400 June 8 Merchandise shipments 36,000 Dec