From the account books of M/s. Aryan Enterprises, the following details are extracted for the year ending on 31 March 2006:
|
Stock of material—opening |
94,000 |
|
Stock of material—closing |
1,00,000 |
|
Direct wages |
1,19,200 |
|
Material purchases during the year |
4,16,000 |
|
Indirect wages |
8,000 |
|
Salaries to administrative staff |
20,000 |
|
Freights inwards |
16,000 |
|
Freights outwards |
10,000 |
|
Cash discounts allowed |
7,000 |
|
Bad debts written off |
9,400 |
|
Repairs to plant and machinery |
21,200 |
|
Rent rates and taxes—factory |
6,000 |
|
Rent rates and taxes—office |
3,200 |
|
Travelling expenses |
6,200 |
|
Salespeople’s salaries and commissions |
16,800 |
|
Depreciation written off—plant and machinery |
14,200 |
|
Depreciation written off—furniture |
1,200 |
|
Directors’ fees |
12,000 |
|
Electricity charges (factory) |
24,000 |
|
Fuel (for boiler) |
32,000 |
|
General chargers |
12,400 |
|
Manager’s salary |
24,000 |
The manager’s time is shared between the factory and the office in the ratio 20:80. For the aforementioned details, you are required to prepare (a) prime cost, (b) factory cost, (c) factory overheads, (d) general overheads and (e) total cost. Cost statement: