The following is the manufacturing and profit and loss accounts of Ramya Ltd. for the year ending on 30 June 2004:
|
Opening stock |
Sales |
2,50,000 |
||
|
Materials |
1,000 |
Closing stock: |
||
|
Finished Goods |
1,500 |
Material |
9,250 |
|
|
purchase of materials |
75,000 |
Finished Goods |
1,500 |
|
|
directs wages |
60,000 |
|||
|
power |
7,750 |
|||
|
Carriage on material |
1,000 |
|||
|
Royalty |
12,000 |
|||
|
Cost of special design |
2,500 |
|||
|
gross profit(c/d) |
1,00,000 |
|||
|
2,60,750 |
2,60,750 |
|||
|
Rent and rates: |
Gross profit (b/d) |
1,00,000 |
||
|
Office |
2,500 |
Interest on Loan |
2,250 |
|
|
Factory |
3,500 |
Sales of scrap(at work cost) |
375 |
|
|
Telephone |
1,500 |
Discount received |
875 |
|
|
Advertisement |
3,750 |
|||
|
Electricity |
||||
|
Office |
1,500 |
|||
|
Factory |
2,250 |
|||
|
Provision for bad debts |
5,000 |
|||
|
Depreciation |
||||
|
Plant and machinery |
3,000 |
|||
|
Delivery vans |
1,000 |
|||
|
Income Tax |
6,000 |
|||
|
Salaries |
12,500 |
|||
|
Donation |
3,500 |
|||
|
Established |
5,000 |
|||
|
Depreciation on furniture: |
||||
|
Office |
1,250 |
|||
|
Factory |
1,000 |
|||
|
Rent on warehouse |
3,250 |
|||
|
Net profit |
47,000 |
|||
|
1,03,500 |
1,03,500 |
|||
You are required to prepare a statement showing the classification of cost under different components from the aforementioned information after giving due consideration to the following facts:
- 60% of telephone expenses relate to office and 40% to sales department.
- 25% of salaries relate to factory, 50% to office and 25% to sales department
- 50% of the establishment expenses relate to office and 50% to sales department.
Chandan: ___________________
The following is the manufacturing and profit and loss accounts of Ramya Ltd. for the year ending on 30 June 2004:
|
Opening stock |
Sales |
2,50,000 |
|
|
Materials |
1,000 |
Closing stock: |
|
|
Finished Goods |
1,500 |
Material |
9,250 |
|
purchase of materials |
75,000 |
Finished Goods |
1,500 |
|
directs wages |
60,000 |
||
|
power |
7,750 |
||
|
Carriage on material |
1,000 |
||
|
Royalty |
12,000 |
||
|
Cost of special design |
2,500 |
||
|
gross profit(c/d) |
1,00,000 |
||
|
2,60,750 |
2,60,750 |
||
|
Rent and rates: |
Gross profit (b/d) |
1,00,000 |
|
|
Office |
2,500 |
Interest on Loan |
2,250 |
|
Factory |
3,500 |
Sales of scrap(at work cost) |
375 |
|
Telephone |
1,500 |
Discount received |
875 |
|
Advertisement |
3,750 |
||
|
Electricity |
|||
|
Office |
1,500 |
||
|
Factory |
2,250 |
||
|
Provision for bad debts |
5,000 |
||
|
Depreciation |
|||
|
Plant and machinery |
3,000 |
||
|
Delivery vans |
1,000 |
||
|
Income Tax |
6,000 |
||
|
Salaries |
12,500 |
||
|
Donation |
3,500 |
||
|
Established |
5,000 |
||
|
Depreciation on furniture: |
|||
|
Office |
1,250 |
||
|
Factory |
1,000 |
||
|
Rent on warehouse |
3,250 |
||
|
Net profit |
47,000 |
||
|
1,03,500 |
1,03,500 |
||
You are required to prepare a statement showing the classification of cost under different components from the aforementioned information after giving due consideration to the following facts:
1. 60% of telephone expenses relate to office and 40% to sales department.
2. 25% of salaries relate to factory, 50% to office and 25% to sales department
3. 50% of the establishment expenses relate to office and 50% to sales department.