Cost sheet and reconciliation statement—Required.
From the following profit and loss account and additional information given, prepare (1) a cost sheet and (2) reconciliation statement.
Profit and Loss Account
|
Particulars |
Particulars |
||
|
To opening stock (materials) |
8,000 |
By sales |
1,85,000 |
|
To purchases |
52,000 |
By closing stock |
15,000 |
|
(materials) |
|||
|
To wages |
28,000 |
||
|
To factory expenses |
12,000 |
||
|
To administration expenses |
10,000 |
||
|
To selling and distribution expenses |
14,000 |
||
|
To patents (written off) |
6,000 |
||
|
To net profit c./d |
70,000 |
||
|
2,00,000 |
2,00,000 |
In costing opening materials were shown at Rs. 7,000. The factory overheads were absorbed at Rs. 14,000. Administration overhead charges 10% of works cost and selling overhead was 10% of sales.