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1] Following information obtained from a manufacturing company:

December 02, 2017 By: Meliza Category: 1st SEM

1] Following information obtained from a manufacturing company:

Direct Material – 150000

Office Expenses – 120000

Factory Expenses – 90000

Total Sales – 650000

Prime Cost – 450000

15% of the output is in stock

Calculate:  (a) Direct Expenses (b) Factory Cost (c) Cost of Production   (d) Cost of Sale (e)Profit

Solution:

Cost Sheet Amt
Direct materials

Direct wages (Prime cost minus Direct materials)

Prime Cost 

Factory expenses

Factory Cost 

Office expenses

Cost of Production

Less: closing stock of finished goods 15% of 6,60,000 -99,000

Cost of Sales   

Profit (balancing figure)

1,50,000

3,00,000

 

4,50,000

90,000

5,40,000

1,20,000

6,60,000

 

 

5,61,000

89,000

SALES 650000

 

It is assumed that there are no raw materials in stock

 

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