Q14/From the books of accounts of ABC Co. Ltd., the following details have been extracted for...

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Q14/From the books of accounts of ABC Co. Ltd., the following details have been extracted for the year ending March 31, 2008: 1,88,000 2,00,000 8,32,000 2,38,400 16,000 40,000 32,000 20,000 14,000 18,800 42,400 12,000 6,400 12,400 33,600 28,900 2,400 Stock - Opening Closing Materials purchased during the year Direct wages paid Indirect wages/ Salaries to administrative staff Freight - Inward Outward Cash discount allowed Bad debts written off Repairs of plant and machinery Rent, rates and taxes Factory Office Travelling expenses/ Salesmens' salaries and commissions Depreciation written off: Plant and Mach Furniture Director's fees Electricity charges (factory) Fuel (for boiler) Sale of scrap General charges Manager's salary 24,000 48,000 64,000 500 24,800 48,000 16,00,000 Sales The Manager's time is shared between the factory and the office in the ratio 20:80 From the above details you are required to prepare a cost sheet to show: (a) Prime Cost; (b) Factory Cost; (c) Cost of Production; (d) Total Cost; (e) Profit. Q14/From the books of accounts of ABC Co. Ltd., the following details have been extracted for the year ending March 31, 2008: 1,88,000 2,00,000 8,32,000 2,38,400 16,000 40,000 32,000 20,000 14,000 18,800 42,400 12,000 6,400 12,400 33,600 28,900 2,400 Stock - Opening Closing Materials purchased during the year Direct wages paid Indirect wages/ Salaries to administrative staff Freight - Inward Outward Cash discount allowed Bad debts written off Repairs of plant and machinery Rent, rates and taxes Factory Office Travelling expenses/ Salesmens' salaries and commissions Depreciation written off: Plant and Mach Furniture Director's fees Electricity charges (factory) Fuel (for boiler) Sale of scrap General charges Manager's salary 24,000 48,000 64,000 500 24,800 48,000 16,00,000 Sales The Manager's time is shared between the factory and the office in the ratio 20:80 From the above details you are required to prepare a cost sheet to show: (a) Prime Cost; (b) Factory Cost; (c) Cost of Production; (d) Total Cost; (e) Profit.

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To prepare the cost sheet we need to calculate the following components a Prime Cost Prime Cost includes direct materials direct wages and direct expe... View the full answer