Please Urgent Help

Others 1453 views 2 replies

Plese solve this sum-

Shri gangaram sells two products manufactured in his own factory. The goods are made in two departments. A and B for which seperate sets of books are maintained. Some of the manufactured goods of department A are used as Raw material by department B and vice-versa.

From the following particulars you are required to ascertain the total cost of goods manufactured in department A and B.

Total units manufactured             Dept.A 1000000           Dept.B 500000

Total cost of manufacture            Dept.A Rs.10000         Dept.B Rs.5000

(excluding inter departmental transfers)

Department A transferred 250000 units to department B and the later transferred 100000 units to the former.

[taken from ad.a.c. ipcc b.m.gupta Q.no 13]

Please reply as I have exams in may.

Replies (2)

Department A has transfered 1/4th of units produced to department B, whereas Deptt B has transfered  1/5th of the units produced. 

let, X be the total cost of department A and Y be the  total cost of department B.

therefore, x=Rs. 10000 +1/5 Y ..... (1)

                  y=Rs. 5000 +1/4 X........ (2)

 

putting the values of X in the first equation, we get X =Rs. 10000+ 1/5 (Rs 5000 +1/4 X)

=Rs. 10000 +Rs.1000+1/20X 

or, X -1/20 X = 11000

Therefore X =Rs. 11579 (apprx)

Putting the values of X as Rs. 11579 in the 2nd equation, we get

Y= Rs.5000 +1/3(Rs. 11579)

or Y =Rs. 7895 (approx)

                

Thank you very much for help. Your answer is exactely right.
 


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