Illustration 4: Calculate Prime Cost, Factory Cost, Cost of Production, Cost of Sales and profit from the following particulars: Rs 2,500 5,000 1,250 500 500 Rs. Direct Materials 100,000 Direct Wages 30,000 Wages of Foreman 2,500 Electric power Lighting: Factory 1,500 Office 500 Storekeeper's wages 1,000 Oil and water 500 Rent: Factory 5,000 Office 2,500 Repairs and Renewals: Office 500 Factory plant Transfer to Reserves 1,000 Consumable stores Manager's Salary Directors' fees Office Stationery Telephone Charges Postage and Telegrams Salesmen's salary Travelling expenses Advertising Warehouse charges Sales Carriage outward Dividend 125 250 1,250 500 1,250 500 189,500 375 2,000 3,500 Discount on shares written off Depreciation: Factory Plant Office Premises 500 500 1,250 Illustration 4 Illustration 4 Prepare cost sheet from the following particulars: Raw material purchased = Rs. 240,000 Paid freight charges = Rs 20,000 Wages paid to laborers = Rs 70,000 Directly chargeable expenses = Rs 50,000 Factory on cost = 20% of prime cost General and administrative expenses = 4% of factory cost Selling and distribution expenses = 5% of production cost Profit 20% on sales Opening stock (Rs.) Closing stock (Rs.) Raw material 30.000 40,000 Work in progress 35,000 48.000 Finished goods 40,000 55,000