From the following data prepare a statement of cost of goods manufactured and cost of goods sold of Popular Stoves Manufacturing Co. for the year 2011:

Rs.

Stock of materials on 1-1-201135,000

Stock of materials on 31-12-20114,900

Purchase of materials52,500

Factory wages95,000

Factory expenses17,500

Office expenses10,000

Completed stock in hand on 1-1-2011Nil

Completed stock in hand on 31-12-201135,000

Sales1,89,000

The number of stoves manufactured during the year 2011 was 4,000.

The company wants to quote for a contract for the supply of 1,000 Electric Stoves during the year 2012.

The stoves to be quoted are of uniform quality and make similar to those manufactured in the previous

year; but cost of materials has increased by 15% and cost of factory labour by 10%.

Prepare a statement showing the price to be quoted to give the same percentage of net profit on turnover as was realized during the year 2011, assuming that the cost per unit of overhead charges

will be the same as in the previous year.

2. Jones, an accountant for G.Ltd. has decided to estimate the fixed and variable

components associated with the company's repair activity. She has collected the

following data for the past six months:

Repair HoursTotal Repair costs

10Rs.800

201,100

15900

12900

181,050

251,250

Required:

a)Estimate the fixed and variable components for the repair costs using the high-low method.Using the cost formula, predict the total cost of repair if 14 hours are used.

b) Estimate the fixed and variable components using the method of least squares.

Translate your results into the form of a cost formula, and using that formula, predict

the total cost of repairs if 14 hours are used.