Model: Cost of production of goods manufactured – statement of cost of sales and profit earned

The following data have been extracted from the records of XYZ Co. Ltd for the month of December 2009.

Cost of raw materials on 1 December 2009

25,000

Raw materials purchased during the month

4,20,000

Wages paid

2,00,000

Factory overheads

70,000

Cost of work-in-progress on 1 December 2009

10,000

Cost of raw materials on 31 December 2009

15,000

Cost of work-in-progress on 31 December 2009

12,000

Cost of stock of finished goods on 1 December 2009

40,000

Cost of stock of finished goods on 31, December 2009

37,000

Administration overheads

25,000

Selling and distribution overheads

20,000

Sales

8,00,000

You are required to prepare:

  1. Cost sheet showing the cost of production of goods manufactured
  2. Statement showing the cost of sales and the profit earned.