Following data are extracted from the books of Pavan Kishore and Co. for the year 2009.

Managing director’s remuneration is allocated as Rs. 4,000 to the factory, Rs. 2,000 to the offi ce and Rs. 6,000 to the selling department.
From the above information compute:

(a) Prime cost

(b) Works cost

(c) Cost of Production

(d) Cost of sales and

(e) Net Profi t.

Transcribed Image Text:

Rs. Opening stock of raw materials 25,000 Closing stock of raw materials 40,000 Purchase of raw materials 85,000 Carriage inwards 5,000 Wages direct 75,000 Wages indirect 10,000 Other direct charges 15,000 Rent and rates: Factory 5,000 Office 500 Indirect consumption of material 500 Depreciation - Plant 1,500 Depreciation Office furniture 100 Salary - Office 2,500 Salary - Salesmen 2,000 Other office expenses 900 Other factory expenses 5,700 Managing director's remuneration 12,000 Other selling expenses 1,000 Travelling expenses 1,100 Carriage outwards 1,000 Sales 2,50,000 Advance income tax paid 15,000 Advertisement 2,000