Question

Get the value of each letter and elaborate the State of Cost of Production and sold and the State of
Results of the 20XX exercise:

Net income after taxes 1'007,417
Advertising 50,000
Initial inventory of production in process . 3,000,000
Indirect manufacturing costs . A
Factory insurance accrued at 20XX 50,000
Cost of finished units 3,610,000
initial inventory of finished items B
Office rent 150,000
Initial inventory of direct raw material 320,000
Depreciation of 20XX 20,000
Cost of Sales C
office salaries   300,000
Factory light 90,000
IFPP (Final Inventory Production Process) D
Office phone 30,000
Income tax (on profit before taxes) 30%
Commissions on sales 190,000
Cost of finished items available for sale 4'590,000
final inventory of finished items E
Maintenance of machinery 120,000
Direct raw material consumed F
final inventory of indirect raw material 210,000
Sales 4,500,000
Primo Cost 1,160,000
Direct labor G
sales salaries 150,000
Indirect labor 150,000
final inventory of direct raw material 180,000
Utility before ISR H
Cost of production in process available I
Net purchases of indirect raw material .    90,000
Conversion cost 1,620,000
Total purchases of direct raw material J
Factory Income 580,000
inicial inventoria indirect raw material 310,000
Cost of production of period K
Gross Profit L
indirect raw material consumed M
Returns on purchases of direct raw material 100,000
Expenditures on purchases of direct raw material 80,000
Depreciation of 20XX 30,000

Answer 1

Statement of Cost of Production & Cost of Sales

Particulars	Amount	Amount	Amount
Initial Inventory of Direct Raw Material		320000
+ Purchases of Raw Material		80000
		400000
-Purchases Returns		100000
- Final Inventory of Direct Raw Material		180000
Direct Raw Material Consumed			120000
Direct Labour			940000
Prime Cost			1160000
Add Indirect Manufacturing Cost
Factory Insurance		50000
Depreciation		50000
Factory Light		90000
Maintenance of Machinery		120000
Indirect Labour		150000
Initial Inventory of Indirect Raw Material	310000
+ Indirect Raw Material Purchased	90000
	400000
-Final Inventory of Indirect Raw Material	210000
Indirect Raw Material Consumed		190000
Works Cost			650000
+ Initial Inventory of Production in Process			300000
Works Cost			950000
Add Office Overheads
Office Phone		30000
Office Salaries		300000	330000
			1280000
+Initial Inventory of Finished items			2330000
Cost of Finished Goods			3610000
Selling Overheads
Advertisement		50000
Commission on Sales		190000
Sales Salaries		150000	390000
Other Sellinf Oh			590000
Cost of Sales			4590000
-Loss			90000
Sales			4500000