The Books of Memon Manufacturing company were destroyed in a fire accident, but somehow following information was obtained:
Sales Rs. 600,000
Finished Goods(opening) 72,000
Work in Process (ending) 80,000
Work in Process (opening) 100,000
Raw Material – (Ending) 70,000
Raw Material – Returns 5,000
For the Missing Information, The company was referring to percentages pertaining to the previous year’s figures.
*Gross Profit Rate was 25% on Sales, Net Profit was 50% of Gross Profit
*Selling Expenses were 10% of Cost of Goods Sold,
*Finished Goods (ending) were 10% of the Cost of Goods Manufactured,
*Raw Material (ending) was 140% of Raw Material (Opening)
*It was also analyzed that Direct Labour was 20% of Prime Cost and 25% of Conversion Cost
Required:
a] Income statement
b] Cost of Goods manufactured
c] Calculate Raw material Purchases

Answer rating: 100% (QA)

Answer a Income statement Sales Rs 600000 Gross Profit Rs ... View the full answer