XYZ Ltd. is maintaining separate set of books for financial accounts and cost accounts. You are required to prepare accounts in cost books and trial balance for the year ended 31st March 2006.
Information Available From Financial Accounts:
v Sales: Rs.6, 30, 000
v Indirect wages: Production Rs.38, 000, Administration Rs.22, 000, Sales and distribution Rs. 30, 000
v Materials purchased: Rs.1, 50, 000
v Direct factory wages: Rs.2, 30, 000
v Production overheads: Rs.70, 000
v Selling and distribution overheads: Rs.60, 000
v Administration overheads: Rs.48, 000
The data available from cost accounts for the period include the following:
v Raw materials issued to production as indirect material Rs.20, 000
v Stores issued to production as direct materials Rs.1, 15, 000
v Raw materials of finished production Rs.4, 05, 000
v Cost of goods sold at finished goods stock valuation Rs.4, 00, 000
v Standard rate of production overhead absorption Re.0.50 per operating hour
v Rate of administration overhead absorption 20% of cost of production
v Rate of sales and distribution overhead absorption 10% of sales
v Actual operating hours worked 2, 40, 000
There is no balance of stock on 1 4 2005