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 Wapes Wages of Storekeeper Depreciation on Machinery Factory Rent Electricity Bill of Factory Renovation of Factory Premises Machinery Repairs and Maintenance onice Cleaning Depreciation on Office Computers Omice Telephone Bill Office Manager's Salary Omice Stationery Fuel in Office Car Legal Charges Salesperson Salary Warehouse Rent Freight Outwards Depreciation of Delivery Van Showroom Rent and Taxes Advertisement AMOUNT IN DIIS 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 7 3,500 650 11,000 1,700 2.750 850 .750 4,500 550 2.350 8.500 5.000

Answer 1

Please find attached Cost Sheet in appropriate format:

Unit Cost= Total cost/ Total Cost (in Dhs.) Description 13236 units Total Material manufactured 13,236 units Raw Materials (Opening balance) 54,000 Add: Purchases 280,000 334,000 Less: Material destroyed by fire 6,650 327,350 Less: Raw Material (closing balance) 48,500 Materials Consumed 278,850 175,000 Productive wages Carriage inward for raw material 2,150 Prime Cost 456,000 34.45 Factory/Indirect Expenses: Factory rent Electricity bill of factory Renovation of factory premises 14,000 6,700 9,300 Machinery repairs and maintenance 2,500 Wages of storekeeper Depreciation of machinery 7,500 8,200 48,200 27,500 Add: Work In Process (Opening Balance) 75,700 Less: Work-in-Process (Closing Balance) 24,750 Total Factory /Indirect Expense Works Cost 50,950 3.85 506,950 38.30 Office and Administrative Expenses: Office cleanings Office telephone bill Office Manager's salary 900 650 11,000 Office statioinery 1,700 Fuel in office car 2,750 Legal Charges 850 Depreciation on office computers 3,500 21,350 Add: Finished Goods (Opening Balance) 61,500 82,850 Less: Finished Goods (closing Balance) 66,750 Total Office & Administrative Expenses Cost of Production of Goods sold 16,100 1.22 523,050 39.52 Selling and Distribution Expense: Warehouse Rent 4,500 Depreciation of delivery van Freight outwards 2,350 550 Advertisement 5,000 Salesperson salary 7,750 Showroom rent and taxes 8,500 Total Selling and Distribution Expenses Total cost or Cost of Goods sold 28,650 2.16 551,700 41.68 Add: Profit/ (Loss) (Sales minus total cost) 110,100 Sales Revenue 661,800