The following information is available for Patel Ltd.

Instructions
a. Compute cost of goods manufactured.
b. Prepare an income statement through gross profit.
c. Show the presentation of the ending inventories on the December 31, 2020, statement of financial position.
d. How would the income statement and statement of financial position of a merchandising company be different from Patel’s financial statements?

Transcribed Image Text:

January 1, 2020 Rs210,000 135,000 December 31, 2020 2020 Raw materials inventory Work in process inventory Finished goods inventory Materials purchased Direct labor Rs300,000 172,000 210,000 270,000 Rs1,500,000 2,200,000 1,800,000 Manufacturing overhead Sales revenue 9,100,000