The following is the profit and loss account of a firm
|
Particulars |
Particulars |
||
|
To materials To wages To work overhead To administration overhead To selling overheads To net profit c./d |
1,00,000 50,000 30,000 9,000 6,000 |
By sales (50,000 units) |
2,00,000 |
|
2,00,000 |
2,00,000 |
The normal output of the firm is 75,000 units. Works overhead is fixed to the extent of Rs. 18,000 and selling overhead is 50% variable. Administration overhead is fully fixed.
You are required to prepare a cost sheet and reconcile the profit there in units that shown by the financial accounts.