Direct labour cost Rs. 16,000 (160% of factory overhead); Cost of goods sold Rs. 56,000;…


Question Description:

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You are required to prepare a statement showing cost of sales and profit earned from the following particulars: 1 January 2009 30 June 2009 Raw materials 8,000 8,600 Work-in-progress 8,000 12,000 Finished Goods 14,000 18,000 Direct labour cost Rs. 16,000 (160% of factory overhead); Cost of goods sold Rs. 56,000; Administration expenses Rs. 2,600; Selling expenses 5% of sales; Sales of the month Rs. 75,000 (Model: Valuation of closing stock and profit)

Answer

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