1,05,700 900 4.000 200 500 400 1,000 100 500 7,600 1.13,300 Works Cost (or) Factory Cost (2) Add : Office and Administrative Overhead: Office stationery Director's remuneration (Office) Sundry office expenses Office insurance Legal expenses (Office) Depreciation of office building Bank charges Rent and rates (Office) Cost of production (3) Add : Selling and Distribution Overhead: Rent of warehouse Depreciation of delivery van Bad debts Advertising Salesmen salaries Up keep of delivery van Commission on sales Total Cost of Sales (4) Profit Sales 5000 tones @ Rs. 40 per unit 300 200 100 300 1,500 700 1,500 4,600 1,17,900 82,100 2,00,000 Illustration: 5 From the following particulars calculate: (a) Prime Cost; (b) Works Cost; (c) Cost of Production; (d) Cost of Sales; (e) Profit; and (f) Cost per unit. Pandey Industries manufacture a product A. On Ist January 2003 finished goods in Stock Rs. 50,000. Other stocks such as: p13 318 Direct wages A Textbook of Financial Cost and Management Accounting Work in progress (1.1.2002) Rs. 40,000 Raw materials (1.1.2002) Rs. 1,00,000 The information available from cost records for the year ended 31 December, 2002 was as follows: Rs. Direct materials 8,00,000 3,00,000 Carriage inward 40,000 90,000 Factory cost 2.75,000 Stock on raw materials (31.12.2002) 80,000 Work in progress (31.12.2002) 70,000 Sales (1,20,000 units) 25,00,000 Indirect materials 1,75,000 Office and Administrative overhead 80,000 Selling and Distribution overhead 1,00,000 Stock on finished goods (31.12.2002) 60,000 Indirect wages