Question

From the following records for the year 2018, prepare a statement of Cost :
5,00,000
Sales (30,000 units)
2,80,000
Raw materials consumed
70,000
Direct wages
10,000
Chargeable expenses
50% of direct wages
Factory overhead
25,000
Administration overhead
1 per unit of sale
Selling and distribution overhead
* 42,500
Opening stock of finished goods (5,000 units)
Closing stock of finished goods (10,000 units)
Assume that finished goods are sold on the basis of FIFO principle.
Ans. : Prime Cost 3,60,000 ; Works Cost 3,95,000 ; Cost of Production 4,20,000 ; Total Cost
3,72,500 : Profit 1,27,500 ; Value of Closing Stock * 1,20,000.
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Answer 1

Answer:

the following records for the year 2018, prepare a statement of Cost :

5,00,000

Sales (30,000 units)

2,80,000

Raw materials consumed

70,000

Direct wages

10,000

Chargeable expenses

50% of direct wages

Factory overhead

25,000

Administration overhead

1 per unit of sale

Selling and distribution overhead

* 42,500

Opening stock of finished goods (5,000 units)

Closing stock of finished goods (10,000 units)

Assume that finished goods are sold on the basis of FIFO principle.

Ans. : Prime Cost 3,60,000 ; Works Cost 3,95,000 ; Cost of Production 4,20,000 ; Total Cost

3,72,500 : Profit 1,27,500 ; Value of Closing Stock * 1,20,000.

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