Exercise 3: Calculate cost of production and cost of goods manufactured from the following information:

Raw material purchased = OMR 220000

Paid freight charges = OMR 13000

Wages paid to labor = OMR 55000

Directly chargeable expenses = OMR 35000

Factory on cost = 10% of prime cost

General and administrative expenses = 6% of factory cost

Selling and distribution expenses = 8% of production

Opening Stock Closing Stock

Raw material OMR 25000 OMR 10000

Work in progress OMR 27500 OMR 14000

Finished goods OMR 30000 OMR 37500