OHs EQ2 - Problem 1 - Request to calc Opg and Clg WIP

k.sankar.ra
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OHs EQ2 - Problem 1 - Request to calc Opg and Clg WIP

Postby k.sankar.ra » Mon May 02, 2016 11:07 am

Following data pertains to Sundaram Corporation Ltd. for the current year:
i.Costs of goods manufactured = Rs. 80 Lakhs while total manufacturing costs = Rs. 90 Lakhs
ii.30% of the total manufacturing costs was applied factory overheads
iii.Sonali Sundaram, the chief accountant could have alternatively used an application rate of 60% on direct labor cost to apply the same factory overheads
iv.WIP inventory at the beginning of the year was 80% of the WIP inventory at the close of the year
1.Sonali Sundaram, the Chief Accountant is trying to figure out the value of the closing WIP inventory. It should not take her long to calculate the value as (Rs. Lakhs):

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