The following data are extracted from the books of M/s. Moonshine Industries Ltd. for the calendar year 1994:

Managing director’s remuneration is to be allocated as follows: Rs 4,000 to factory, Rs 2,000 to office and Rs 6,000 to selling departments. From the aforementioned information, prepare

(a) prime cost,

(b) works cost,

(c) cost of production,

(d) cost of sales and

(e) net profit.

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