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3. XYZ company manufactures a product which is sold to dealers and marketing is handled by a network of representatives. The selling expenses pertain to
3. XYZ company manufactures a product which is sold to dealers and marketing is handled by a network of representatives. The selling expenses pertain to the commission paid to the representatives. The commissions are 6% of sales. The following data pertain to the operations during the year 20XX. Sales Rs. 8,645,661 Administrative salaries 525,654 Direct labour 2,039,804 Indirect labour 739,233 Total depreciation 186,180 Total utilities 156,000 Interest expense 40,500 Other factory overhead 46,472 Out of the total depreciation, 80% relates to manufacturing and 20% relates to general and administrative costs. Out of the total utilities, 70% relates to manufacturing and 30% relates to general and administrative costs. Income taxes are 30% of income before taxes. The following data pertain to inventory: Raw materials Indirect Work-in-process Finished goods materials Opening balance Rs. 4,65,054 33,048 7.28,206 7,45,598 Purchases 26,00.799 1.92,300 Ending balance 4,87,399 43,029 5,66,442 9.32,105 (a) Prepare schedule of cost of goods manufactured for the year ending December 20xx. (b) Prepare schedule of cost of goods sold for the year ending December 20XX
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