Prepare the Cost sheet to show the total cost of production and cost per
unit of goods manufactured by a company for the month of July 1978.
Also find the cost of sales.
Stock of Raw Materials as on 1-7-78. 3,000; Raw materials purchased
28,000; Stock of Raw Material on 31-7-78; * 4,500; Manufacturing
Wages 7,000; Loss on sale of a part of plant * 300; Factory Rent and
Rates 3,000; Other rent 500; General expenses 400; Advertisement
expenses to be charged fully * 600; Income tax paid * 2,000;
Depreciation on plant 1,500.
The number of units produced during July 1978 was 3,000. The stock of
finished goods was 200 and 400 units on 1-7-78 and 31-7-78 respectively.
The total cost of the units on hand on 1-7-78 was 2,800. All these had
been sold during the month.
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