Cost FLows

v -

Head
Factory office
.

Integrated System
.

Interlocking System
- -
Cost
flows Raw Material
-
:

FIRST PHASE
7

-Labour >

Head 7
Office
&

"Overhead

2nd Phase

FINISHED GOODS
-
J
>

SALES To

CUSTOMER ,
-

Factory
Obtain Mat(Las(oH from Ho N

and convert it into Fe

.

12
. At the time
of
Sal hand oves
Canelection
good to o foz sale
.

Head
ofgile
provide MatILas/OH to
factory
to
gette
② see
good and collect .
canb

activities
3 Prepare PK statement
for all .
E
Following transactions were entered into by Saleem Ltd:

1. Purchase materials worth Rs 100 -

2. Engaged Labour Rs 80 for factory

-

3. paid Rs.110 for overheads for factory

4. Material is worth 92 were used by factory
5. Overhead absorbed during the year Rs.105
6. Goods completed worth Rs 240
7. Goods costing Rs 208 were sold for Rs 430
8. Cash collected by head office Rs 402
Head
office Factory
-

RMaterial
Factory 100 108

Head 100
Cash /Creditor , loo
offile
Go Labour Go
a
Factory -

Hloygic 80
cash/wage. Pay do
Pott 110
s
Factory 110
110
Cash/Pay Jo out 110 #loggin
290

clp 92-
R.
M at 92
Fund

N/E wip

-Lasous
dow

Ho 5
Pot 110

wIp : 277 .

Fa 240 /Cropp 37-

wip 240

Fe
0
Fu = 32

208 Hloffic 208

Factor Fa 208

All Res 430 (100 80 110) 290

Pay + +

Sale . 430 Goods to (200)

- ⑭ 82
Co 208 loss (5)
8
.

Fu 208 77
Rm
=

= &
37
Cash 402 #32
-

Res 402 77
=
Profit /Lon Al at Ho

Sal . 430
(208)
Coge G P .

222

underapplied (5)
Polt
217
=>