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Opening inventory of raw material of a manufacturing concern is Rs. 10,000, Purchase during the year is Rs. 2,00,000, Wages Rs. 50,000, Carriage Rs. 5,000, Factory overheads Rs. 1,25,000 and closing inventory of raw material is Rs. 15,000. The amount to be transferred is
- a)Rs. 3,75,000 to cost of goods manufactured account.
- b)Rs. 3,75,000 to cost of goods sold account.
- c)Rs. 3,75,000 to cost of sales account.
- d)Rs. 3,75,000 to cost to company account.
Correct answer is option 'A'. Can you explain this answer?
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Opening inventory of raw material of a manufacturing concern is Rs. 10...
The amount to be transferred to the cost of goods manufactured account is Rs. 3,75,000.
Explanation:
To determine the amount to be transferred to the cost of goods manufactured account, we need to calculate the total manufacturing costs.
Manufacturing costs include the cost of raw materials used in production, direct labor costs, and factory overhead costs.
Given information:
- Opening inventory of raw material = Rs. 10,000
- Purchases during the year = Rs. 2,00,000
- Wages = Rs. 50,000
- Carriage = Rs. 5,000
- Factory overheads = Rs. 1,25,000
- Closing inventory of raw material = Rs. 15,000
To calculate the total manufacturing costs, we need to add the cost of raw materials used, direct labor costs, and factory overhead costs.
1. Cost of raw materials used:
Opening inventory of raw material + Purchases during the year - Closing inventory of raw material
= Rs. 10,000 + Rs. 2,00,000 - Rs. 15,000
= Rs. 1,95,000
2. Direct labor costs:
Rs. 50,000
3. Factory overhead costs:
Rs. 1,25,000
Total manufacturing costs:
Cost of raw materials used + Direct labor costs + Factory overhead costs
= Rs. 1,95,000 + Rs. 50,000 + Rs. 1,25,000
= Rs. 3,70,000
Therefore, the amount to be transferred to the cost of goods manufactured account is Rs. 3,75,000.
Note: The cost of goods manufactured account represents the total cost incurred in the production of goods during a specific period. This includes the cost of raw materials used, direct labor costs, and factory overhead costs. The cost of goods manufactured is then transferred to the cost of goods sold account when the goods are sold.
Explanation:
To determine the amount to be transferred to the cost of goods manufactured account, we need to calculate the total manufacturing costs.
Manufacturing costs include the cost of raw materials used in production, direct labor costs, and factory overhead costs.
Given information:
- Opening inventory of raw material = Rs. 10,000
- Purchases during the year = Rs. 2,00,000
- Wages = Rs. 50,000
- Carriage = Rs. 5,000
- Factory overheads = Rs. 1,25,000
- Closing inventory of raw material = Rs. 15,000
To calculate the total manufacturing costs, we need to add the cost of raw materials used, direct labor costs, and factory overhead costs.
1. Cost of raw materials used:
Opening inventory of raw material + Purchases during the year - Closing inventory of raw material
= Rs. 10,000 + Rs. 2,00,000 - Rs. 15,000
= Rs. 1,95,000
2. Direct labor costs:
Rs. 50,000
3. Factory overhead costs:
Rs. 1,25,000
Total manufacturing costs:
Cost of raw materials used + Direct labor costs + Factory overhead costs
= Rs. 1,95,000 + Rs. 50,000 + Rs. 1,25,000
= Rs. 3,70,000
Therefore, the amount to be transferred to the cost of goods manufactured account is Rs. 3,75,000.
Note: The cost of goods manufactured account represents the total cost incurred in the production of goods during a specific period. This includes the cost of raw materials used, direct labor costs, and factory overhead costs. The cost of goods manufactured is then transferred to the cost of goods sold account when the goods are sold.
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Opening inventory of raw material of a manufacturing concern is Rs. 10,000, Purchase during the year is Rs. 2,00,000, Wages Rs. 50,000, Carriage Rs. 5,000, Factory overheads Rs. 1,25,000 and closing inventory of raw material is Rs. 15,000. The amount to be transferred isa)Rs. 3,75,000 to cost of goods manufactured account.b)Rs. 3,75,000 to cost of goods sold account.c)Rs. 3,75,000 to cost of sales account.d)Rs. 3,75,000 to cost to company account.Correct answer is option 'A'. Can you explain this answer?
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Opening inventory of raw material of a manufacturing concern is Rs. 10,000, Purchase during the year is Rs. 2,00,000, Wages Rs. 50,000, Carriage Rs. 5,000, Factory overheads Rs. 1,25,000 and closing inventory of raw material is Rs. 15,000. The amount to be transferred isa)Rs. 3,75,000 to cost of goods manufactured account.b)Rs. 3,75,000 to cost of goods sold account.c)Rs. 3,75,000 to cost of sales account.d)Rs. 3,75,000 to cost to company account.Correct answer is option 'A'. Can you explain this answer? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about Opening inventory of raw material of a manufacturing concern is Rs. 10,000, Purchase during the year is Rs. 2,00,000, Wages Rs. 50,000, Carriage Rs. 5,000, Factory overheads Rs. 1,25,000 and closing inventory of raw material is Rs. 15,000. The amount to be transferred isa)Rs. 3,75,000 to cost of goods manufactured account.b)Rs. 3,75,000 to cost of goods sold account.c)Rs. 3,75,000 to cost of sales account.d)Rs. 3,75,000 to cost to company account.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Opening inventory of raw material of a manufacturing concern is Rs. 10,000, Purchase during the year is Rs. 2,00,000, Wages Rs. 50,000, Carriage Rs. 5,000, Factory overheads Rs. 1,25,000 and closing inventory of raw material is Rs. 15,000. The amount to be transferred isa)Rs. 3,75,000 to cost of goods manufactured account.b)Rs. 3,75,000 to cost of goods sold account.c)Rs. 3,75,000 to cost of sales account.d)Rs. 3,75,000 to cost to company account.Correct answer is option 'A'. Can you explain this answer?.
Opening inventory of raw material of a manufacturing concern is Rs. 10,000, Purchase during the year is Rs. 2,00,000, Wages Rs. 50,000, Carriage Rs. 5,000, Factory overheads Rs. 1,25,000 and closing inventory of raw material is Rs. 15,000. The amount to be transferred isa)Rs. 3,75,000 to cost of goods manufactured account.b)Rs. 3,75,000 to cost of goods sold account.c)Rs. 3,75,000 to cost of sales account.d)Rs. 3,75,000 to cost to company account.Correct answer is option 'A'. Can you explain this answer? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about Opening inventory of raw material of a manufacturing concern is Rs. 10,000, Purchase during the year is Rs. 2,00,000, Wages Rs. 50,000, Carriage Rs. 5,000, Factory overheads Rs. 1,25,000 and closing inventory of raw material is Rs. 15,000. The amount to be transferred isa)Rs. 3,75,000 to cost of goods manufactured account.b)Rs. 3,75,000 to cost of goods sold account.c)Rs. 3,75,000 to cost of sales account.d)Rs. 3,75,000 to cost to company account.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Opening inventory of raw material of a manufacturing concern is Rs. 10,000, Purchase during the year is Rs. 2,00,000, Wages Rs. 50,000, Carriage Rs. 5,000, Factory overheads Rs. 1,25,000 and closing inventory of raw material is Rs. 15,000. The amount to be transferred isa)Rs. 3,75,000 to cost of goods manufactured account.b)Rs. 3,75,000 to cost of goods sold account.c)Rs. 3,75,000 to cost of sales account.d)Rs. 3,75,000 to cost to company account.Correct answer is option 'A'. Can you explain this answer?.
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Opening inventory of raw material of a manufacturing concern is Rs. 10,000, Purchase during the year is Rs. 2,00,000, Wages Rs. 50,000, Carriage Rs. 5,000, Factory overheads Rs. 1,25,000 and closing inventory of raw material is Rs. 15,000. The amount to be transferred isa)Rs. 3,75,000 to cost of goods manufactured account.b)Rs. 3,75,000 to cost of goods sold account.c)Rs. 3,75,000 to cost of sales account.d)Rs. 3,75,000 to cost to company account.Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Opening inventory of raw material of a manufacturing concern is Rs. 10,000, Purchase during the year is Rs. 2,00,000, Wages Rs. 50,000, Carriage Rs. 5,000, Factory overheads Rs. 1,25,000 and closing inventory of raw material is Rs. 15,000. The amount to be transferred isa)Rs. 3,75,000 to cost of goods manufactured account.b)Rs. 3,75,000 to cost of goods sold account.c)Rs. 3,75,000 to cost of sales account.d)Rs. 3,75,000 to cost to company account.Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Opening inventory of raw material of a manufacturing concern is Rs. 10,000, Purchase during the year is Rs. 2,00,000, Wages Rs. 50,000, Carriage Rs. 5,000, Factory overheads Rs. 1,25,000 and closing inventory of raw material is Rs. 15,000. The amount to be transferred isa)Rs. 3,75,000 to cost of goods manufactured account.b)Rs. 3,75,000 to cost of goods sold account.c)Rs. 3,75,000 to cost of sales account.d)Rs. 3,75,000 to cost to company account.Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Opening inventory of raw material of a manufacturing concern is Rs. 10,000, Purchase during the year is Rs. 2,00,000, Wages Rs. 50,000, Carriage Rs. 5,000, Factory overheads Rs. 1,25,000 and closing inventory of raw material is Rs. 15,000. The amount to be transferred isa)Rs. 3,75,000 to cost of goods manufactured account.b)Rs. 3,75,000 to cost of goods sold account.c)Rs. 3,75,000 to cost of sales account.d)Rs. 3,75,000 to cost to company account.Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA CPT tests.
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