The following data are extracted from Pavan Kishore for the year 1991:
|
Rs |
|
|
Opening stock of raw materials |
25,000 |
|
Closing stock of raw materials |
40,000 |
|
Purchase of raw materials |
85,000 |
|
Carriage inwards |
5,000 |
|
Wages direct |
75,000 |
|
Wages indirect |
10,000 |
|
Other direct charges |
15,000 |
|
Rent and rates: |
|
|
Factory |
5,000 |
|
Office |
500 |
|
Indirect consumption of material |
500 |
|
Depreciation on plant |
1,500 |
|
Depreciation on office furniture |
100 |
|
Salary—office |
2,500 |
|
Salary—salesmen |
2,000 |
|
Other office expenses |
900 |
|
Other factory expenses |
5,700 |
|
Managing director’s remuneration |
12,000 |
|
Other selling expenses |
1,000 |
|
Travelling expenses |
1,100 |
|
Carriage outwards |
1,000 |
|
Sales |
2,50,000 |
|
Advance income tax paid |
15,000 |
|
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2,000 |
Managing director’s remuneration is allocated as follows: Rs 4,000 to the factory, Rs 2,000 to the office and Rs 6,000 to the selling departments.From the aforementioned information, calculate (a) prime cost, (b) works cost, (c) cost of production (d) cost of sales and (e) net profit.