The manufacturing Cost Data of a factory is as under: (Figures are in Rs. ‘000)

Work-in-Progress Finished Goods Placed in Opening Closing Opening Closing Proceed in Direct Material 160 400 900 1,000 1,000 Direct Labour 80 100 100 200 600 Factory Overheads 60 560 200 100 1,200 Sales are Rs. 3,900 and selling and administration expenses are Rs. 900 for the year (all figures are in Rs. ,000). You are required to:

(a) Prepare an Income Statement with appropriate supporting schedules;

(b) Compute the Elements of Cost and the Cost of Goods Sold

[Ans.:

(a) Net Income Rs. 1,000; Cost of goods sold Rs. 2,000;

Cost of Goods manufactured Rs. 2,100.

(b) Direct Material Rs.

660; Direct Labour Rs. 480; Factory Overheads Rs. 480]