Prepare a statement showing cost and profit from the following details, clearly showing (a) prime cost, (b) works cost, (c) cost of production, (d) cost of sales and (e) profit:
|
Particulars |
Rs |
|
Rs |
|
|
Direct wages |
1,50,000 |
Directs materials |
5,00,000 |
|
|
Power |
2,500 |
Oil and water |
2,500 |
|
|
Storekeeper wages |
5,000 |
Transfer to general reserve |
5,000 |
|
|
Factory Rent |
25,000 |
Foreman’s Salary |
12,500 |
|
|
Office Rent |
12,500 |
Factory Lighting |
7,500 |
|
|
Repairs |
Office Lighting |
2,500 |
||
|
Factory plant |
17,500 |
Depreciation: |
||
|
Office building |
2,500 |
Factory plant |
2,500 |
|
|
Goodwill written off |
2,500 |
office building |
6,250 |
|
|
Consumables stores |
12,500 |
Managers salary |
25,000 |
|
|
Director’s fees |
6,250 |
office stationary |
2,500 |
|
|
telephone rent |
625 |
postage |
1,250 |
|
|
salespeople’s salaries |
6,250 |
Travelling expenses |
2,500 |
|
|
Advertising |
6,250 |
warehouse rent |
2,500 |
|
|
Income tax |
50,000 |
Dividend paid |
10,000 |
|
|
sales |
947,500 |