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Prepare a cost sheet to find the cost of sales for the year ending 31 January 2019 from the following data for AK manufacturers:ParticularsAmount(RS)Stock of raw material (1.1.19)4,000Stock of raw material (31.1.19)5,500Raw material purchased29,000Manufacturing wages8,000Depreciation on plant1,500Factory rent and rates4,000Office rent1,000General expenses1,200Sales discount1,000Advertising expenses5,000The number of units produced during the month was 4,000. The stock of finished goods was 300 and 400 units on 1.1.19 and 31.1.19 respectively. The total cost of units in hand on 1.1.19 was RS 3,900. All these had been sold during the month. |
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Answer» (A) Purchases during the year 29,000 (B) Add: Opening stock of raw material 4,000 (C) Less: Closing stock of raw material (5,500) (D) Material Consumed (A+B-C) 27,500 27,500 6.875 (E) Manufacturing wages 8,000 2.000 (F) Prime Cost (D+E) 35,500 8.875 Add: Factory Overheads Depreciation on plant 1,500 Factory rent and rates 4,000 (G) Total Factory Overheads 5,500 (H) Factory/Work Cost (F+G) 41,000 Add: Office and Administrative Overheads Office rent 1,000 General expenses 1,200 (I) Total Office and Administrative Overheads 2,200 (J) Cost of Production/Office Cost (H+I) 43,200 (K) Add: Opening finished stock 3,900 (L) Less: Closing finished stock (10.8*400) (4,320) (M) Cost of Goods Sold (J+K-L) 42,780 Add: Selling and Distribution Overheads Sales Discount 1,000 Advertising Expenses 5,000 (N) Total Selling and Distribution Overheads 6000 (O) Total Cost/Cost of Sales (M+N) 48,780 |
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