Imagine / assume you are running a Manufacturing firm with a capital of $500,000 – 1,000,000. You are free to assume / invest within the range of $ 500,000-$ 1,000,000, depending on the size of the firm. The total cost of the firm is 1,500,000. With this assumption you are required to prepare the Cost Sheet of the firm Further requirements: 

1. Assume the administrative cost of the firm with in the range of $200,000 to 400,000 

2. Selling and distribution overheads are $350,000 

3. You can select an amount of Opening stock of finished goods within a range of $10,000 to $ 20,000 

4. You can select an amount of WIP opening and closing with in a range of $15000 to $ 25000. 

5. Analyze the differences in between the Manufacturing cost and Administrative cost as well as the effect of these costs on your cost sheet. 

6. Give recommendations on the basis of your findings and conclusions to the firm, how they can increase their profit margin?

Answer rating: 100% (QA)

add opening stock WIP 18000 less closing stock WIP 16000 work cost 2000 office and administrative 250000 total cost of production 252000 opening stock of finished goods 15000 less closing stock of fin... View the full answer