49. Financial profit is Rs 40.000 over
absorption of overheads Rs 15.000.
Costing profit will be
Answers
Answer:
A Glass Manufacturing Company requires
you to calculate and present the budget for
the next year from the following information:
Direct materials cost: 60% of sales
Direct wages: 20 workers @ Rs. 150 per
month
Factory Overheads:
Indirect labour:
Works Manager: Rs. 500 per month
Foreman: Rs. 400 per month
Stores and spares: 2½ % on sales
Depreciation on Machinery: Rs. 12,600
Light and power: Rs 5,000
Repairs and Maintenance: Rs. 8,000
Other Sundries : 10% on direct wages.
Administration, selling and distribution
expenses : Rs. 14,000 p.a
———————
Answer:
Costing profit will be 55000.
Explanation:
A product makes a profit when its selling price exceeds its cost price. The profit formula is used to determine this profit. In other words, the profit formula is used to determine the gain gained in any financial transaction or to determine the profit made by selling a specific product, typically in a business. Profit = Selling Price - Cost Price is the simple definition of profit. The profit that a company makes after deducting its manufacturing and selling expenses from its total sales is known as gross profit. The gross profit is determined by using the following formula: gross profit = total sales (revenue) - the cost of goods sold.
Thus, direct and indirect costs are subtracted from all realised sales to arrive at the profit.