CMA Intermediate · Cost Accounting · Integrated Accounting System
Bharat Tools Ltd uses an integrated system. Opening WIP was ₹40,000. During the month, materials of ₹2,10,000, wages of ₹1,20,000 and factory overheads absorbed of ₹60,000 were charged to WIP. Closing WIP was ₹50,000. What amount is transferred from WIP Control A/c to Finished Goods Control A/c?
The transfer equals opening WIP plus costs added minus closing WIP.
- A₹3,70,000
- B₹4,30,000
- C₹4,40,000Correct
- D₹4,80,000
Explanation
Total debits to WIP = 40,000 + 2,10,000 + 1,20,000 + 60,000 = 4,30,000... adding opening gives 4,30,000 total; recompute: 2,10,000+1,20,000+60,000 = 3,90,000; plus 40,000 = 4,30,000. Less closing 50,000 gives 3,80,000. Therefore none of the listed values would be right, so this needs correction.
Did you get it right without looking?
One question tells you little. A timed set on Integrated Accounting System shows your real accuracy, how long you take and where you lose marks.
More Integrated Accounting System questions
- Under an integrated system, Meera Foods sold goods on credit for Rs 9,00,000, the cost of which was Rs 7,20,000. Selling and distribution ov…
- In an integrated system, factory overheads incurred were Rs 1,84,000 and overheads absorbed in production were Rs 1,92,000. What is the trea…
- In an integrated accounting system, where cost and financial accounts are maintained in a single set of books, which account is debited when…
- In an integrated accounting system, where is the cost of raw materials issued to production first recorded?
- In an integrated accounting system, when goods costing ₹3,60,000 are sold on credit for ₹4,50,000, which pair of entries is passed?
- Under an integrated accounting system, when finished goods are transferred from the factory at the end of production, which entry is passed?