A manufacturing company submits to you the following details about the various expenses incurred by it during the year ending on 31 December 1985:
|
Rs |
|
|
Cost of raw materials consumed |
25,000 |
|
Advertising |
1,000 |
|
Depreciation on plant and machinery |
1,500 |
|
Factory office salaries |
6,000 |
|
Legal expenses |
300 |
|
Supervisor’s salary |
5,500 |
|
Factory rates and insurance |
1,000 |
|
Carriage outwards |
1,500 |
|
Direct labour |
20,000 |
|
Bad debts |
300 |
|
Office stationery |
200 |
|
Rent of factory buildings |
2,500 |
|
Office salary |
10,000 |
|
Commission on sales |
4,000 |
|
Audit fees |
300 |
|
Income tax |
1,500 |
|
Donation to charitable institutions |
500 |
|
Purchase of new plant |
10,000 |
Classify the aforementioned expenses under various heads of cost, showing separately the total expenditure under each head. Also show separately the expenses that shall not be included in calculating the cost.