Question

Problem 9
From the following informations, prepare Contract Account:
Purchase of Materials-15000
Materials issued from Stores-7500
Direct Wages-17500
Indirect Wages-2500
material return to Stores-1500
Contract Price-60000
Factory Overhead 20% of Wages, Office Overhead 10% of Works Cost.
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Answer 1

Answer:

Market Price =32500 , Discount =20%

Selling Price =MP−Discount×MP

⟹32500−

100

20

×32500=26000

The shopkeeper still makes a profit of 30% after selling it at Rs 26000

SP =CP−Profit

⟹26000=CP+

100

30

CP=

10

13

CP

⟹CP=20000

∴ Cost Price of the T.V. is Rs 200