Cost Accounting- Help me solve this problem
 

The following data relate to the Shirley Company:

----------------------------------------Inventories
-----------------------------------ENDING…… BEGINNING
Finished goods ………………………………… 95,000……….. 10,000
Work in process…………………………….…. 80,000……….. 70,000
Direct material………………………….……… 95,000………... 90,000

Costs incurred during the period:
Costs of goods available for sale…….……X………........684,000
Total manufacturing costs…………….……..X…….....…..584,000
Factory overhead………………………….……..X…….....…..167,000
Direct materials used…………………….……..X……….......193,000

Required: Statement of cost of goods sold, including all beginning and ending inventories.

While making Cost of goods sold Statement, I am able to do everything perfectly but when it comes to 'Cost of goods available for sale', my calculated value is 564,000, and mentioned in problem is 684,000. There is a variance of 120,000. Is this amount to be adjusted somewhere in the statement? like under or ovr applied FOH or some other element? Where do I adjust this 120,000?

[FONT="Comic Sans MS"]Is this information is complete or you missed something..actually I tried this question but some difference came at Manufacturing cost...as per me Finished Good Begining must be [B]110,000[/B]
to get right answer

Secondly, why you calculated Available for sale as it was mentioned in question..? you need to calculate missing figures of Statement of Cost of Goods sold.

May be I am wrong but I think this should be solved like this..have a look at image below[/FONT]
[IMG]http://i1139.photobucket.com/albums/n555/Riz2303/general/COGSStatement.png[/IMG]

[QUOTE=xaara~hussain;388288]The following data relate to the Shirley Company:

----------------------------------------Inventories
-----------------------------------ENDING…… BEGINNING
Finished goods ………………………………… 95,000……….. 10,000
Work in process…………………………….…. 80,000……….. 70,000
Direct material………………………….……… 95,000………... 90,000

Costs incurred during the period:
Costs of goods available for sale…….……X………........684,000
Total manufacturing costs…………….……..X…….....…..584,000
Factory overhead………………………….……..X…….....…..167,000
Direct materials used…………………….……..X……….......193,000

Required: Statement of cost of goods sold, including all beginning and ending inventories.

While making Cost of goods sold Statement, I am able to do everything perfectly but when it comes to 'Cost of goods available for sale', my calculated value is 564,000, and mentioned in problem is 684,000. There is a variance of 120,000. Is this amount to be adjusted somewhere in the statement? like under or ovr applied FOH or some other element? Where do I adjust this 120,000?[/QUOTE]
ap pora data do is main purchases.d labour wagera nhn hai

please suggest me books for accounting and auditing subject for css exam.which books are best who help me for solved the problems as well

[QUOTE=lubna naz;427113]please suggest me books for accounting and auditing subject for css exam.which books are best who help me for solved the problems as well[/QUOTE]
A combination of local & foreign book is preferred as the changing pattern of paper.

accounting 1

1. Meigs & Meigs ( foreign)
2. Fundamental Accounting principals and key( Gani & EJAZ's)
3.Advanced Accounting & key( Only Ratios Chapter) ( Gani & EJAZ's)
4. IAS book of ICAP( Very Important to get good marks, only IAS-1 & IAS related to depreciation, You can get it by Waheed Book Depot Lahore, This will be a miracle for you, only 1 hour to this book for 25 marks as according to new pattern)

Cost Accounting

1. B.Com book by Sohail Afzal is more than enough

Taxation

1. Mirza Munawer Hussain

Business


B.Com Book by Muhammad Asghar

Auditing

B.Com Book more than enough( Dont go for Khawaja Amjad Saeed Book, very lengthy)

[QUOTE]The following data relate to the Shirley Company:

----------------------------------------Inventories
-----------------------------------ENDING…… BEGINNING
Finished goods ………………………………… 95,000……….. 10,000
Work in process…………………………….…. 80,000……….. 70,000
Direct material………………………….……… 95,000………... 90,000

Costs incurred during the period:
Costs of goods available for sale…….……X………........684,000
Total manufacturing costs…………….……..X…….....…..584,000
Factory overhead………………………….……..X…….....…..167,000
Direct materials used…………………….……..X……….......193,000

Required: Statement of cost of goods sold, including all beginning and ending inventories.

While making Cost of goods sold Statement, I am able to do everything perfectly but when it comes to 'Cost of goods available for sale', my calculated value is 564,000, and mentioned in problem is 684,000. There is a variance of 120,000. Is this amount to be adjusted somewhere in the statement? like under or ovr applied FOH or some other element? Where do I adjust this 120,000?[/QUOTE]
The following are only tricky points in the question. The following three workings would help u easily solve rest of the problems.

[B][U]Workings:[/U][/B]

[B]Material available for use:[/B]
DM used (given) +ending inventory of DM
=193000+95000=288000

[B]Material purchases: [/B]
Material available for sale less opening inventory of DM
=288000-90000=198000

[B]Cost of labor:[/B]
Manufacturing cost less DM used (given) and factory overhead(given)
=584000-193000-167000=224000

Regards.