The Modern manufacturing company submitted the following information on 31 March 1993:
|
Rs |
|
|
Sales for the year |
2,75,000 |
|
Inventories at the beginning of the year: |
|
|
Finished goods |
7,000 |
|
WIP |
4,000 |
|
Purchase of materials |
1,10,000 |
|
Materials inventory: |
|
|
At the beginning of the year |
3,000 |
|
At the end of the year |
4,000 |
|
Direct labour |
65,000 |
|
Factory overheads were 60% of direct labour cost |
|
|
Inventories at the end of the year: |
|
|
WIP |
6,000 |
|
Finished goods |
8,000 |
|
Other expenses for the year: |
|
|
Selling expenses |
|
|
Administration expenses |
10% of sales |
|
Prepare a statement of cost |
5% of sales |