Question

1. Show the treatment of the following items in cost statement:
Rs.
Raw material consumed
80,000
Direct wages
60,000
Direct expenses
23,000
Factory overhead
45,000
Opening work-in-progress
8,000
Closing work-in-progress
6,000
145​

Answer 1

Explanation:

Direct Material ( raw material consumed ) 80000

Direct wages 60000

Direct expenses 23000

Prime Cost 163000

Add : FACTORY OH

Factory overhead 45000

208000

Add : opening WIP 8000

216000

Less : closing WIP 6000

Factory Cost 210000