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$($a$)$ Delight Food Products produces Squash Cubes by continuous processing in three

departments i$.$e$.$ A$,$ B and C$.$ During November $2017$ Department B received $8000$

cubes from the Department A $($preceding department$)$ and transferred $5500$ cubes to

Department C $($next department$).$ During the month there was a normal loss of $400$

cubes at the end of process. Moreover, $600$ cubes, $75\%$ completed, were lost due to

negligence of a worker in the B department. There was no work in process beginning

inventory, the ending inventory was estimated as $60\%$ completed. Following product

costs were charged to the department during the month of November:

Cost from preceding department

$[Rs.16400],[2000],[3625],[5075],[27100]$

Direct Material

Direct Labour

Factory Overhead

It is noticed that all materials are added at the start of process in Department B$.$

Required: Prepare the Cost of Production Report for the month of November, $2017($for

Department B$).$

$($b$)$ Ahmad Enterprises produces and sells the finest quality golf clubs in all of Clay County.

The company expects the following revenues and costs in $2017$ for its Elite Quality golf

club sets:

Revenues $(400$ sets sold @ Rs$.600$ per set$)$

Rs$.240,000$

Variable costs

Rs$.160,000$

Fixed costs

Rs$.50,000$

Required: How many sets of clubs $($unit$)$ must be sold for Ahmad Enterprises to reach

their breakeven point?

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