Question

PROBLEM PARTICULARS Raw Material (as on January 01, 2019) Work-in-Progress (as on January 01, 2019) Finished Goods (as on January 01, 2019) Raw Material (as on January 31, 2019) Work-in-Progress (as on January 31, 2019) Finished Goods (as on January 31, 2019) Material Purchased Carriage Inward for Raw Material Material destroyed by fire Productive Wages Wages of Storekeeper Depreciation on Machinery Factory Rent Electricity Bill of Factory Renovation of Factory Premises Machinery Repairs and Maintenance Office Cleaning Depreciation on Office Computers Office Telephone Bill Office Manager's Salary Office Stationery Fuel in Office Car Legal Charges Salesperson Salary Warehouse Rent Freight Outwards Depreciation of Delivery Van Showroom Rent and Taxes Advertisement AMOUNT IN DHS. 54,000 27,500 61,500 48,500 24,750 66,750 280,000 2,150 6,650 175,000 7,500 8,200 14,000 6,700 9,300 2,500 900 3,500 650 11,000 1,700 2,750 850 7,750 4,500 550 2,350 8,500 5,000

Answer 1

Answer is given below

SOLUTION DHS Total Cost Unit Cost Particulars Opening inventory of Raw Material Add: purchases Add: Carriage inward Total Direct Material Available 54,000 280,000 2,150 336,150 6,650 Less: Material destroyed by Fire 329,500 48,500 Less: Closing inventory of Raw Material Raw material consumed 281,000 21.23 Direct Labor 175,000 13.22 34,45 Prime Cost 456,000 7,500 8,200 Wages of Store keeper Depreciation on Machinery Factory rent Electricity bill of factory Renovation of factory premises 14,000 6,700 9,300 2,500 3.64 Machinery repairs and maintenance 48,200 504,200 27,500 38.09 |Add: Opening work in progress 531,700 24,750 506,950 Less: Closing work in progress Works Cost 38.30 Office and Administration overheads Office Cleaning Depreciation on Office Computers 900 3,500 650 11,000 1,700 2,750 850 Office telephone bills Office manager salary Office Stationary Fuel in Office Car 1.61 39.91 Legal charges 21,350 528,300 Add: Opening Finished Goods 61,500 589,800 66,750 Less: Closing Finished Goods Cost of Production of Goods Sold Selling and Distribution expenses Sales person salary Warehouse rent 39.52 523,050 7,750 4,500 550 Freight outward Depreciation on Delivery vehicles Showroom Rent and Taxes Advertisement 2,350 8,500 5,000 28,650 2.16 551,700 Total cost or Cost of Goods Sold 41.68 Add: Profit 110,100 661,800 8.32 Sales Revenue 50.00