Question

The Following Trail Balance has been extracted from the books of ABC Company on December 31st, 2018: 

Descriptions 

Debit  

Descriptions 

Debit  

Rs. 

Rs.  

Cash 

          8,200 

Notes Payable 

3,200 

Accounts Receivable 

          41,000 

Accounts Payable 

    12,350 

Notes Receivable 

          23,000 

Taxes Payable 

      1,500 

Material (1-1-2018) 

    31,800 

Rent Payable 

      1,020 

Work in Process (1-1-2018) 

            4,000 

Dividend Payable 

          500 

Finished Goods (1-1--2018) 

          11,700 

Sales 

    35,000 

Prepaid Insurance 

              200 

Common Stock 

    10,000 

Machinery & Equipment 

          93,500 

Retained Earnings 

    34,570 

Purchased of Material 

          16,000 

Accumulated Depreciation 

    20,000 

Carriage inward 

              520 

 

 

Direct Labor 

          33,000 

 

 

Indirect Material 

            8,520 

 

 

Indirect Labor 

            5,580 

 

 

Depreciation - Factory 

            5,400 

 

 

Utility - Factory 

            6,500 

 

 

Carriage outward 

              460 

 

 

Advertising 

              175 

 

 

Salesmen Salary 

              565 

 

 

Foreman Salary 

            7,000 

 

 

Administrative Cost 

            1,020 

 

 

 

        318,140 

 

  318,140 

 

During the year 70,000 units have been produced. The Following Further information are also available: 

Inventories at December 31st, 2018 

Rs. 



Material 

            3,520 



Work in Process 

            2,500 



Finished Goods  

          10,000 







Note: The factory overhead cost applied at the rate of 100% of direct labor cost.  


The actual FOH cost incurred during the period Rs. 31,480. 






Required 




a) Statement of Cost of Goods Manufactured at December 31st, 2018. (Marks 5)


b) Statement of Profit or Loss for the year ended December 31st, 2018. (Marks 5)

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Answer 1

Answer:

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