The following figures are extracted from the trial balance of Gogetter company on 30 September 1998:

i. Inventories:

Finished stock	40,000
Raw materials	70,000
WIP	1,00,000
Office appliances	8,700
Plant and machinery	2,30,250
Buildings	1,00,000
Sales	3,84,000
Sales return and rebates	7,000
Material purchased	1,60,000
Freight incurred on materials	8,000
Purchase returns	2,400
Direct labour	80,000
Indirect labour	9,000
Factory supervision	5,000
Repairs and upkeep of factory	7,000
Heat, light and power	32,500
Rates and taxes	3,150
Sales travelling	5,500
Miscellaneous factory expenses	9,350
Sales commission	16,800
Sales promotion	11,250
Distribution department salaries and expenses	9,000

ii.Office salaries and expenses:

Office salaries and expenses	4,300
Interest on borrowed funds	1,000

Further details are available as follows:

i.Closing inventories:

Finished goods		57,500
Raw materials	90,000
Work-in-process	96,000

ii. Accrued expenses on

Direct labour	4,000
Indirect labour		600
Interest on borrowed funds	1,000

iii. Depreciation to be provided on

Office appliances	5%
Plant and machinery	10%
Buildings	4%

iv.Distribution of the following costs:

Heat, light and power to factory, office and selling in the ratio 8:1:1. Rates and taxes two thirds of factory and one third of office. Depreciation on buildings to factory, office and selling in the ratio 8:1:1.

Prepare

1. Administration ratio
2. Selling and distribution expenses
3. Cost of sales
4. Profit and sales statement

Answer rating: 100% (QA)

Answer Answer Office Overheads Heat light and power 3250 Rates and taxes 1050 Office salaries and ex... View the full answer