Question

Beta Engineering Works Manufactures a product. The following is the information provided by them for the year ended March 31, 2018.

Particulars

Opening Stock of Raw Materials

Closing Stock of Raw Materials

Productive Wages

Opening Stock of Work in Progress

Closing Stock of Work in Progress Opening Stock of Finished Goods (15,000 units)

Goods available for sale Closing stock of Finished Goods

Productive Wages due but not paid

Amount

20,000

30,000

2,30,000

50,000

40,000

1,20,000

13,35,000

90,000

20,000

1. Factory overheads are recovered at 100% of productive wages.

2. Administrative Overheads are recovered at the rate of Rs. 2/- per unit.

3. The company charges selling expenses at the rate of Rs. 3/- per unit. 4. The company has sold 1,40,000 units during the year out of the total

1,50,000 units available for sale.

5. The company maintains a profit @ 20% on

sales.

stock of

You are required to prepare the cost for the year ended March 31,2018. Working notes form a part of the answer. Please show working notes wherever

necessary.​

Answer 1

Answer:

om the following balances of Vikas, Prepare trading and profit and loss account for the year

Debit balances

Rs.

Credit balances

Rs.

Machinery

35,000

Capital account

1,00,000

Debtors

27,000

Creditors

14,000

Drawing

9,000

Sales

1,45,000

Purchases

95,000

Wages

50,000

Bank

15,000

Stock

20,000

Rent

4,500

Sundry expenses

2,000

carriage

1,500

Closing Stock was Rs 600

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