Following data are extracted from the books of Pavan Kishore and Co. for the year 2009.
|
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 – Plant |
1,500 |
|
Depreciation – 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 |
|
Advertisement |
2,000 |
Managing director’s remuneration is allocated as Rs. 4,000 to the factory, Rs. 2,000 to the office and Rs. 6,000 to the selling department.
From the above information compute:
- Prime cost
- Works cost
- Cost of Production
- Cost of sales and
- Net Profit.