From the following data of Meta Ltd., CALCULATE Cost of production: Amount (₹) (i) Repair & maintenance paid for plant & machinery 9,80,500…

CA Intermediate · Cost and Management Accounting · MTP · September 2024
From the following data of Meta Ltd., CALCULATE Cost of production: Amount (₹) (i) Repair & maintenance paid for plant & machinery 9,80,500 (ii) Insurance premium paid for inventories 26,000 (iii) Insurance premium paid for plant & machinery 96,000 (iv) Raw materials purchased 64,00,000 (v) Opening stock of raw materials 2,88,000 (vi) Closing stock of raw materials 4,46,000 (vii) Wages paid 23,20,000 (viii) Value of opening Work-in-process 4,06,000 (ix) Value of closing Work-in-process 6,02,100 (x) Quality control cost for the products in manufacturing process 86,000 (xi) Research & development cost for improvement in production process 92,600 (xii) Administrative cost for: - Factory & production 9,00,000 - Others 11,60,000 (xiii) Amount realised by selling scrap generated during the manufacturing process 9,200 (xiv) Packing cost necessary to preserve the goods for further processing 10,200 (xv) Salary paid to Director (Technical) 8,90,000 (xvi) Expenses paid for pollution control and engineering & maintenance 22,000

Suggested Answer and Working Notes:

Calculation of Cost of Production of Meta Ltd for the period..... Particulars Amount (₹) Raw materials purchased 64,00,000 Add: Opening stock 2,88,000 Less: Closing stock (4,46,000) Material consumed 62,42,000 Wages paid 23,20,000 Prime cost 85,62,000 Repair and maintenance cost of plant & machinery 9,80,500 Insurance premium paid for inventories 26,000 Insurance premium paid for plant & machinery 96,000 Quality control cost 86,000 Research & development cost 92,600 Administrative overheads related with factory and production 9,00,000 1,07,43,100 Add: Opening value of W-I-P 4,06,000 Less: Closing value of W-I-P (6,02,100) 1,05,47,000 Less: Amount realised by selling scrap (9,200) Add: Primary packing cost 10,200 Add: Expenses paid for pollution control and engineering & maintenance 22,000 Cost of Production 1,05,70,000 Notes: Other administrative overhead does not form part of cost of production.Salary paid to Director (Technical) is an administrative cost.

Topics: Cost Sheet

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