Accounting and Valuation of Work-In-Progress

The provided content appears to be a comprehensive assignment on production costing, covering various aspects such as floor area, canteen cost, rent, supervision, and overhead absorption rate. It also includes details on refining process accounts, raw materials, labour, and overheads, as well as the valuation of work-in-progress (WIP). The content concludes with the total contract profit realized and the value of WIP.

Q1.
Perpetual Inventory System
Under FIFO system
Date
Reciept
(units)
Issues
(units)
Unit
cost
Value of
transaction
Units of
Balance stock
Value of
balance stock
01-Apr 2900 21 60900 2900 60900
03-Apr 2400 20 48000 5300 108900
04-Apr 3200 66900 2100
Under LIFO
system
06-Apr 2600 18 46800 4700 88800
12-Apr 2700 52800 2000 36000
14-Apr 3000 24 72000 5000 108000
18-Apr 2800 22 61600 7800 169600
20-Apr 2200 40800 5600 128800
22-Apr 2600 21 54600 8200 183400
25-Apr 3800 89200 4400 94200
26-Apr 3100 23 71300 7500 165500
27-Apr 2500 24 60000 10000 225500
28-Apr 3200 27 86400 13200 311900
29-Apr 6900 151700 6300 160200
Under LIFO system
Date
Reciept
(units)
Issues
(units)
Unit
cost
Value of
transaction
Units of
Balance stock
Value of
balance stock
01-Apr 2900 21 60900 2900 60900
03-Apr 2400 20 48000 5300 108900
04-Apr 3200 64800 2100 44100
06-Apr 2600 18 46800 4700 90900
12-Apr 2700 48900 2000 42000
14-Apr 3000 24 72000 5000 114000
18-Apr 2800 22 61600 7800 175600
20-Apr 2200 48400 5600 127200
22-Apr 2600 21 54600 8200 181800
25-Apr 3800 82200 4400 99600
26-Apr 3100 23 71300 7500 170900
27-Apr 2500 24 60000 10000 230900
28-Apr 3200 27 86400 13200 317300
29-Apr 6900 174000 6300 143300

Q2.
Overhead analysis sheet
Overhead
Basis of
apportionme
nt
Ratio for
distribution Total
Production
departments Service departments
A B Stores General
Maintenence floor area 30:16:7:7 100 50
26.666
66667
11.666666
67
11.6666
7
Depreciation
of plant
Plant book
value 20:10:5:4 50 25.64103
12.820
51282
6.4102564
1
5.12820
5
plant
insurance
Plant book
value 20:10:5:4 60 30.76923
15.384
61538
7.6923076
92
6.15384
6
heat & light floor area 30:16:7:7 75 37.5 20 8.75 8.75
Canteen Cost
No of
employees 10:5:3:2 30 15 7.5 4.5 3
Rent floor area 30:16:7:7 50 25
13.333
33333
5.8333333
33
5.83333
3
Supervision
No of
employees 10:5:3:2 120 60 30 18 12
TOTAL 485 243.9103
125.70
51282
62.852564
1
52.5320
5
Overhead absorption rate
Department A Department B
0.003048878 0.002095085
Q3.
Refining Process account
Particulars units
Unit
Cost Value Particulars units
Unit
Cost Value
Balance
b/f 5000
18500
0
finished
goods
2100
0 19.633
41229
3
units
added
2000
0 balance c/f 4000
12.7767
5 51107
cost
added:
Raw
material 45300
labour
12500
0
overheads
10810
0

Total
2500
0
46340
0 Total
2500
0
46340
0
Production statement
Particulars inputs output(units) material(units)
labour(units
) overhead(units)
Bal b/f 5000 21000 21000 21000 21000
Mixing
process 20000 4000 4000 1600 2400
Total 25000 25000 25000 22600 23400
Particulars Total Cost Equivalent units of production
Balance bf 185000 100000 25000 60000
cost added 278400 45300 125000 108100
total cost to account for 463400 145300 150000 168100
cost per unit
19.6329288
3 5.812
6.63716814
2
7.18376068
4
Cost accounted for as follows:
transfer to finished goods 412291.5053 122052 139380.531
150858.974
4
closing WIP 51108.49467 23248 10619.46903
17241.0256
4
Total Cost 463400 145300 150000 168100
Q4.
Contract account
Particulars
Amoun
t Particulars
Amoun
t
balance bf 158000 material t/f out 15000
Material on site: 4500 material sold 19800
plant 150000
material issued from
store 14600 plant 236250
plant hiring charges 250 material closing 51000
material from supplier 128400
cost of work to be done
closing 466000
plant purchased 120000
sub contract fees 18450
consultancy fees 28000

inspection fees 500
salaries & wages 161550
head office expenses 1200
direct expenses 2600
Total 788050 Total 788050
cost of work to be done
b/f 466000 value of work certified 820000
contract profit 396000 cost of work not certified 42000
Total 862000 Total 862000
Valuation of WIP
Particulars
Amoun
t
Cost incurred 466000
add: contract profit realised 396000
Total 862000
less: value of work certified paid for 580000
Value of WIP 282000