1. The document provides details of opening stock, purchases, production, and sales of raw materials, semi-finished goods, and finished goods. It includes inventory quantities and values at each stage of the production process. 2. Raw material purchases of 20 units at Rs. 55 per unit are recorded. Raw materials of 12 units valued at Rs. 600 are issued for production of semi-finished goods. 3. Semi-finished goods production of 6 units with a value of Rs. 660 is recorded. 8 units of semi-finished goods valued at Rs. 880 are issued for finished goods production.

1. Material Ledger &
Accounting Entries
1

2. Material Ledger and Accounting Entries
• Opening Stock Details :
• Raw Materials – 10 Units @ 50 Rs. 500
• SFG – 5 Units @ 110 Rs. 550
• FG – 3 Units @ 235 Rs. 705
Category Qty Value Var Single Var Multi Rate
Beg Inv 10 500 50.00
GR
Cum Inv
Consump
End Inv
Raw Material
Category Qty Value Var Single Var Multi Rate
Beg Inv 5 550 110.00
GR
Cum Inv
Consump
End Inv
Semi Finished Goods
Category Qty Value Var Single Var Multi Rate
Beg Inv 3 705.00 235.00
GR
Cum Inv
Consump
End Inv
Finished Goods
2

3. Goods Receipts of Raw Material
• RM Purchased 20 Units @ 55 Rs. 1100.
Category Qty Value VarSingle VarMulti Rate
BegInv 10 500 50
GR 20 1000 100 55
CumInv
Consump
EndInv
RawMaterialOpening Stock 10 500
Purchase 20 1000
Raw Material Inventory Acc
Price Variance 20 100
Price Variance RM Price Variance 20 100
Price Variance RM
3

4. RM Issue to SFG Production
OpeningStock 10 500 RMConsumption 12 600
Purchase 20 1000
RawMaterialInventoryAcc
RMInvAc 12 600
RMConsumptionAc
Category Qty Value VarSingle VarMulti Rate
BegInv 10 500 50
GR 20 1000 100 55
CumInv
Consump 12 600
EndInv
RawMaterial
4

5. SFG Activity Cost - Standard
Activity Hours Rate Value
MHR 5 10 50
LHR 5 2 10
SFGStandard
RM Inv Ac 12 600
Act MHR - Std 5 50
Act LHR - Std 5 10
RM Consumption Ac
SFGProductionCostCenter 60 MachineHours 5 50
LabourHours 5 10
60 60
SFGProductionCostCenter
5

6. SFG Activity Cost - Actual
Activity Hours Rate Value
MHR 6 12 72
LHR 4 2 8
SFGActual
SFGProductionCostCenter 60 MachineHours 5 50
SFGProductionCost 20 LabourHours 5 10
MachineHours 1 22
LabourHours -1 -2
80 80
SFGProductionCostCenter
Activity Hours Rate Value
MHR 5 10 50
LHR 5 2 10
SFGStandard
RM A/c 12 600
Act MHR - Std 5 50
Act LHR - Std 5 10
Act MHR - Vari 1 22
Act LHR - Vari -1 -2
RM Consumption Accounts
6

7. SFG Production
Category Qty Value VarSingle VarMulti Rate
BegInv 5 550 110.00
GR 6 660 20
CumInv
Consump
EndInv
SemiFinishedGoods
RMA/c 12 600 SFGInventory 6 660
ActMHR-Std 5 50 SFGPriceVarianceAcc 20
ActLHR-Std 5 10
ActMHR-Vari 1 22
ActLHR-Vari -1 -2
680 680
RMConsumptionAccounts
RMConsump 20
SFGPriceVariance
7

8. SFG Issue to FG Production
OpeningStock 5 550 SFGConsumpAcc 8 880
RMConsumpt 6 660
SFGInventoryAccount
SFG Inventory Acc 8 880
SFG Consumption Account
Category Qty Value VarSingle VarMulti Rate
BegInv 5 550 110.00
GR 6 660 20
CumInv
Consump 8 880
EndInv
SemiFinishedGoods
8

9. FG Activity Cost – Standard & Actual
FGProductionCostCenter 60 MachineHours 5 50
FG ProductionCost 20 LabourHours 5 10
MachineHours 1 22
Labour Hours -1 -2
80 80
FG ProductionCostCenter
SFGInventoryAcc 8 880
ActMHR-Std 5 50
ActLHR-Std 5 10
ActMHR-Vari 1 22
ActLHR-Vari -1 -2
SFGConsumptionAccount
Activity Hours Rate Value
MHR 5 10 50
LHR 5 2 10
FG Standard
Activity Hours Rate Value
MHR 6 12 72
LHR 4 2 8
FG Actual
9

10. FG Production
SFG Inventory Acc 8 880 FG Inventory Acc 4 940
Act MHR - Std 5 50 FG Price Variance Acc 20
Act LHR - Std 5 10
Act MHR - Vari 1 22
Act LHR - Vari -1 -2
960 960
SFG Consumption Account
Category Qty Value VarSingle VarMulti Rate
BegInv 3 705.00 235.00
GR 4 940.00 20.00
CumInv
Consump
EndInv
FinishedGoods
SFGConsump 20
FGPriceVariance
10

11. FG issue to Sales Depot
OpeningStock 3 705 SalesDepotInventoryAcc 5 1175
SFGConsumpt 4 940
FGInventoryAccount
FGInventoryAcc 5 1175
SalesDepotInventoryAccount
Category Qty Value VarSingle VarMulti Rate
BegInv 3 705.00 235.00
GR 4 940.00 20.00
CumInv
Consump 5 1,175.00
EndInv
FinishedGoods
11

12. Inventory Valuation
Category Qty Value VarSingle VarMulti Rate
BegInv 5 550 110.00
GR 6 660 20
CumInv 11 1210 20
Consump 8 880
EndInv 3 330
SemiFinishedGoods
Category Qty Value VarSingle VarMulti Rate
BegInv 3 705 235.00
GR 4 940 20
CumInv 7 1,645 20
Consump 5 1,175
EndInv 2 470
FinishedGoods
Category Qty Value Var Single Var Multi Rate
Beg Inv 10 500 50.00
GR 20 1,000 100
Cum Inv 30 1500 100
Consump 12 600
End Inv 18 900
Raw Material
12

13. Inventory Valuation (Contd)
Category Qty Value VarSingle VarMulti Rate
BegInv 10 500.00 50.00
GR 20 1,000.00 100.00 55.00
CumInv 30 1,500.00 100.00 53.33
Consump 12 600.00 40.00 53.33
EndInv 18 900.00 60.00 53.33
RawMaterial
Category Qty Value VarSingleVarMulti Rate
BegInv 5 550.00 110.00
GR 6 660.00 20.00
CumInv 11 1,210.00 20.00
Consump 8 880.00 14.55
EndInv 3 330.00 5.45
SemiFinishedGoods
Category Qty Value Var SingleVar Multi Rate
Beg Inv 3 705.00 235.00
GR 4 940.00 20.00
Cum Inv 7 1,645.00 20.00
Consump 5 1,175.00 14.29
End Inv 2 470.00 5.71
Finished Goods
13

14. Inventory Valuation (Contd)
Category Qty Value VarSingle VarMulti Rate
BegInv 10 500.00 50.00
GR 20 1,000.00 100.00 55.00
CumInv 30 1,500.00 100.00 53.33
Consump 12 600.00 40.00 53.33
EndInv 18 900.00 60.00 53.33
RawMaterial
Category Qty Value VarSingle VarMulti Rate
BegInv 5 550.00 110.00
GR 6 660.00 20.00 40.00 120.00
CumInv 11 1,210.00 20.00 40.00 115.45
Consump 8 880.00 14.55 29.09 115.45
EndInv 3 330.00 5.45 10.91 115.45
SemiFinishedGoods
Category Qty Value VarSingle VarMulti Rate
BegInv 3 705.00 235.00
GR 4 940.00 20.00 43.64 250.91
CumInv 7 1,645.00 20.00 43.64 244.09
Consump 5 1,175.00 14.29 31.17 244.09
EndInv 2 470.00 5.71 12.47 244.09
FinishedGoods
14

15. Accounting Entries for Revaluation of Inventory
Opening Stock 10 500Issue to Prdn 12 600
Purchased 20 1000Closing Stock 18 960
RM Price Variance -1 60.00
1560 1560
Raw Material
OpeningStock 5.00 550.00 SFGConsumpAcc 8.00 880.00
RMConsumpt 6.00 660.00 ClosingStockofSFG 3.00 346.36
SFGPriceVariance-3 16.36
11.00 1,226.36 11.00 1,226.36
SFGInventoryAccount
Opening Stock 3 705.00 Sales Depot Inventory Acc 5 1
SFG Consumpt 4 940.00 Closing Stock ofFG 2
FG Price Variance Acc 18.18
1,663.18 1
FG Inventory Account
SFGConsump 20.00 FGInventoryAcc-5 18.18
SFGPriceVariance-4 43.64 DepotInventoryPriceVariance-6 45.45
63.64 63.64
FGPriceVariance
OpeningStock 3 705.00 SalesDepotInventoryAcc 5 1,175.00
SFGConsumpt 4 940.00 ClosingStockofFG 2 488.18
FGPriceVarianceAcc-5 18.18
1,663.18 1,663.18
FGInventoryAccount
15

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