Question :
Prepare a cost sheet of the following data relating to the manufacturer XYZ Traders. Also
find the Profit margin of the firm,
20.000
Direct materials consumed
8.000
Direct labour
2.500
Indirect labour (in factory)
1,000
Supervision costs (in factory)
1.600
Factory premises ront
600
Factory lighting
100
Oil for machines
500
Depreciation of machines
8.000
Office overheads
Office salaries
2.000
Misc. office expenses
1.000
Selling and distribution overhearts
6.000
Sales
61.560
Answers
Answer:
(1) Profit in 2013-14 370,000, in 2014-15 1,00,000; in 2015-16 1,25,000.
(ii) Non-recurring income of 39,000 is included in the profit of 2015-16.
(iii) Profits in 2014-15 have been reduced by 13,000
on account of goods destroyed by fire.
(iv) Goods have not been insured but it is decided to insure them in future. The insurance premium is
estimated at 900 per annum.
(v) The proprietor thinks to appoint an accountant in the business to maintain the books of accounts.
Salary will be paid to the accountant @ 1,500 per month.
(vi) Reasonable remuneration of the proprietor of business is 12,000 per year but it has not been taken
into account for computation of above-said profits.
(vii) Profits in 2013-14 include * 11,000 income from investments.
Goodwill is to be valued at 2 year's purchase of the weighted average profits of the past 3 years
Hope it's helpful dear
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