The Modern Furniture Co. submits the following information on 31st March 1997

Sales for the year Inventories at the beginning of the year :

Raw material Finished goods Work in progress 3,000 7,000 4,000 Purchase of material for the year Direct labour Factory overhead 60% of direct labour cost Inventories at the end of the year were :

Raw material Finished goods Work in progress 4,000 8,000 6,000 Other expenses for the year were :

Selling expense 10% on sales.

Administrative Overhead - 5% on sales.

Statement of cost.

Rs.

2,75,000

14,000 1,10,000 65,000

18,000