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

Cost sheet of ABC & co for the month of January 2019
		Total cost	Cost per unit
Direct Materials of Raw materials consumed
Opening stock of Raw materials	54000
Add: Materials purchased	280000
Add: Carriage inwards	2150
Less: Closing stock of Raw materials	-48500	287650	21.73
Productive wages		175000	13.22
less: Material destroyed by fire		-6650	-0.50
Prime Cost		456000	34.45
Add: factory overhead
Wages of Storekeeper	7500
Depreciation on Machinery	8200
Factory Rent	14000
Electricity Bill of Factory	6700
Renovation of Factory Premises	9300
Machinery Repairs and Maintenance	2500	48200	3.64
Add: opening stock of Work in progress		27500	2.08
		531700	40.17
Less: Closing Stock of Work in progress		-24750	-1.87
Work Cost		506950	38.30
Add: office or administrative Overhead
Office Cleaning	900
Depreciation on Office Computers	3500
Office Manager's Salary	11000
Office Telephone Bill	650
Office Stationery	1700
Fuel in Office Car	2750
Legal Charges	850	21350	1.61
Cost of production		528300	39.91
Add: Opening finished Goods		61500
		589800
Less: Closing finished Goods		-66750	-5.04
Cost of production of goods sold		523050	39.52
add: Selling and Distribution overhead
Salesperson Salary	7750
Warehouse Rent	4500
Freight Outwards	550
Depreciation of Delivery Van	2350
Showroom Rent and Taxes	8500
Advertisement	5000	28650
Total cost / Cost of Goods sold		551700	41.68
Profit		110100	8.32
Sales		661800	50.00
Profit percentage profit = profit / Total cost X 100 Profit = 110100/551700 X 100 Profit= 20% Profit= Sales - Total cost = 661800-551700= 110100