The following information has been obtained from the records of Harpreet Corporation for the period from 1 January to 31 January 2010:

Prepare a cost sheet and the income statement showing the gross profi t and net profi t.

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1 January 2010 31 January 2010 Rs. Rs. Cost of raw materials 15,000 12,500 Cost of work-in-progress 6,000 7,500 Cost of stock of finished goods 30,000 27,500 Transactions during the month: Rs. Purchase of raw materials 2,25,000 Wages paid 1,15,000 Factory overheads 46,000 Administrative overheads 15,000 Selling and distribution overheads Sales 10,000 4,50,000