A firm of sports equipments commenced business on 1.4.2009 for 2 varieties of cricket bats, senior and junior. The following information has been extracted from the accounts records for the half-year period ended 30.9.2009:
|
(i) Average material cost per piece of senior bat |
80 |
|
(ii) Average material cost per piece of junior bat |
60 |
|
(iii) Average cost of labour per piece of senior bat |
140 |
|
(iv) Average cost of labour per piece of junior bat |
110 |
|
(v) Finished goods sold: |
|
|
Senior 300 pieces |
|
|
Junior 700 pieces |
|
|
(vi) Sale price: |
|
|
Per piece of senior bat |
500 |
|
Per piece of junior bat |
390 |
|
(vii) Works expenses incurred during the period |
1,20,000 |
|
(viii) Office expenses |
68,000 |
You the required to prepare a statement showing:
- The profit per each brand—piece of bat, charge labour, and material at actual average cost, works expenses at 100% on labour cost and office expenses at 25% of works cost
- Financial profit for the half year ending 30.9.2009
- Reconciliation between profits as shown by cost accounts and financial accounts