Professional Documents
Culture Documents
Following data
are extracted from its trial balance as on June 30, 2004
Required:
(a) Work out total manufacturing cost, Cost of goods manufactured & Cost of goods sold.
(b) Prepare Profit & Loss account/income statement
Total Manufacturing Cost
Direct Material
Opening Raw Material Nil
Add: Purchases 100,000
Less: Purchase Returns 5,000
Less: Purchase Discount 2,000
Total Raw Material Available during the year 93,000
Less: Closing Raw Material 20,000
Total Raw Material Consumed during the year 73,000
Direct Labor 45,000
Factory Overheads
Indirect Labor 20,000
Indirect Material 10,000
Insurance Expense of Factory 3,000
Plant misc. Expenses 10,000
Salaries to Staff (Manufacturing Dept.) 42,000
Dep. on Machinery (1 year period) 55,000
Insurance on Plant Manager's Car (6 months prd.) 1,500
Dep. on Car for Plant Manager (6 months prd.) 37,500
Books for Technical Dept. 500
Quality Control Expenses 8,000
Electricity Bill of Plant 28,000 215,500
Total Manufacturing Cost 333,500
Sales 500,000
Less: Cost of Goods Sold 328,500
Gross Profit 171,500
Add:
Rent Income 25,000
Dividend Income 10,000
Other Income (Gain on Sale of Fixed Asset) 7,000
42,000
Net Loss 55,500