Piegis Limited is a multi-product company. Following are the data relating to the revenue and cost of its four products A, B, C and D. B(Rs.) 27 Sales Price Direct Cost Raw material cost Direct Labor Sales Promotion expenses A (Rs.) 30 8 5 2 15 10 6 1 17 C(Rs.) 32 11 6 2. D(Rs.) 35 13 8 3 24 19 The quantities of production and sales of A, B, C and D are 8,000, 11,000, 8,500 and 9,500 respectively. The above cost and revenue data are based on the averages for the year ended June 30, 19x2. You are also given the consolidated income statement for the year ended June 30, 19x2. Income statement for the year ended 30.6.19x2 Rs. 11,41,500 3,91,000 2,33,000 I Sales Revenue Cost Raw material cost Direct labor Salaries Production Administrative Selling & Distribution Rent Printing and Stationary Repairs Depreciations Building Machinery Sales Promotion expenses Lease Rents Motor vehicles Computers Total cost and expenses Profit/(Loss) 85,000 65,000 92,000 36,000 15,000 40,000 30,000 1,00,000 72,000 16,500 16,000 11,92,000 (50,500) 15,000 40,000 Printing and Stationary Repairs Depreciations Building Machinery Sales Promotion expenses Lease Rents Motor vehicles Computers Total cost and expenses Profit/(Loss) 30,000 1,00,000 72,000 16,500 16,000 11,92,000 (50,500) Following additional information is available: 1. Rent is for the office premises admeasuring 300 square feet. The current agreement will expire on 30th September 19x2. The landlord has already hinted at a rent increase from that date from current level of RS. 10 per sq. f1, p.m. to Rs.12 per sq. ft. p.m. ii. Depreciation has been calculated as follows Rate of depreciation, Building Machinery WDV as on 1.7:xl (Rs.) 6,00,000 10,00,000 5% 10% Depreciation (Rs.) 30,000 1,00,000 iii. Lease rental consists of the following: Motor vehicles Rs.16,500 include a one-time lease management fee of Rs.1,500 and a quarter's lease rental since the equipment was leased on 1.4.19x2. The lease rentals are uniform throughout the lease period of 5 years. Motor vehicles Rs.16,500 include a one-time lease management fee of Rs.1,500 and a quarter's lease rental since the equipment was leased on 1.4.19x2. The lease rentals are uniform throughout the lease period of 5 years. Computers Rs.16,000 are the lease rentals paid in accordance with the following lease rental schedule. paid monthly for each of the calendar years as follows: Calendar 19x0 19x1 19x2 19x3 Lease rental (Rs.) Rs.22,000 Rs.18,000 Rs.14,000 Rs.10,000 Taking into account the above data and the following additional information, project an income statement for the year 19x2-x3. a. Sales prices are likely to move by following amounts: A B Current Price Rs.30 Rs.27 Rs.32 Rs.35 Revised Price Rs.31 Rs.27 Rs.34 Rs.37 D b. Quantities to be product and sold are likely to be as follows: A B C D Current Volume 8,000 11,000 8,500 9,000 Projected Volume 9,000 12,000 10,000 10,000 c. Salaries would move up by 15% over 19x1-x2. 10,000 c. Salaries would move up by 15% over 19x1-x2. d. Printing and stationery cost would go up by 6% for increase in consumption and would inflation of around 10%. e. Repairs expenditure would rise in line with inflation rate f. Depreciation policy will be continued g. Raw material cost is likely to rise as follows: I Current cost (Rs.) 8 10 Projected cost (Rs.) 9 B 11 OOO D 11 13 12 14 h. Labor cost will move up in accordance with inflation. 1. Sales promotion expenses per unit will not change J. Lease rentals will be payable in accordance with the 'lease rental schedules'. Piegis Limited is a multi-product company. Following are the data relating to the revenue and cost of its four products A, B, C and D. B(Rs.) 27 Sales Price Direct Cost Raw material cost Direct Labor Sales Promotion expenses A (Rs.) 30 8 5 2 15 10 6 1 17 C(Rs.) 32 11 6 2. D(Rs.) 35 13 8 3 24 19 The quantities of production and sales of A, B, C and D are 8,000, 11,000, 8,500 and 9,500 respectively. The above cost and revenue data are based on the averages for the year ended June 30, 19x2. You are also given the consolidated income statement for the year ended June 30, 19x2. Income statement for the year ended 30.6.19x2 Rs. 11,41,500 3,91,000 2,33,000 I Sales Revenue Cost Raw material cost Direct labor Salaries Production Administrative Selling & Distribution Rent Printing and Stationary Repairs Depreciations Building Machinery Sales Promotion expenses Lease Rents Motor vehicles Computers Total cost and expenses Profit/(Loss) 85,000 65,000 92,000 36,000 15,000 40,000 30,000 1,00,000 72,000 16,500 16,000 11,92,000 (50,500) 15,000 40,000 Printing and Stationary Repairs Depreciations Building Machinery Sales Promotion expenses Lease Rents Motor vehicles Computers Total cost and expenses Profit/(Loss) 30,000 1,00,000 72,000 16,500 16,000 11,92,000 (50,500) Following additional information is available: 1. Rent is for the office premises admeasuring 300 square feet. The current agreement will expire on 30th September 19x2. The landlord has already hinted at a rent increase from that date from current level of RS. 10 per sq. f1, p.m. to Rs.12 per sq. ft. p.m. ii. Depreciation has been calculated as follows Rate of depreciation, Building Machinery WDV as on 1.7:xl (Rs.) 6,00,000 10,00,000 5% 10% Depreciation (Rs.) 30,000 1,00,000 iii. Lease rental consists of the following: Motor vehicles Rs.16,500 include a one-time lease management fee of Rs.1,500 and a quarter's lease rental since the equipment was leased on 1.4.19x2. The lease rentals are uniform throughout the lease period of 5 years. Motor vehicles Rs.16,500 include a one-time lease management fee of Rs.1,500 and a quarter's lease rental since the equipment was leased on 1.4.19x2. The lease rentals are uniform throughout the lease period of 5 years. Computers Rs.16,000 are the lease rentals paid in accordance with the following lease rental schedule. paid monthly for each of the calendar years as follows: Calendar 19x0 19x1 19x2 19x3 Lease rental (Rs.) Rs.22,000 Rs.18,000 Rs.14,000 Rs.10,000 Taking into account the above data and the following additional information, project an income statement for the year 19x2-x3. a. Sales prices are likely to move by following amounts: A B Current Price Rs.30 Rs.27 Rs.32 Rs.35 Revised Price Rs.31 Rs.27 Rs.34 Rs.37 D b. Quantities to be product and sold are likely to be as follows: A B C D Current Volume 8,000 11,000 8,500 9,000 Projected Volume 9,000 12,000 10,000 10,000 c. Salaries would move up by 15% over 19x1-x2. 10,000 c. Salaries would move up by 15% over 19x1-x2. d. Printing and stationery cost would go up by 6% for increase in consumption and would inflation of around 10%. e. Repairs expenditure would rise in line with inflation rate f. Depreciation policy will be continued g. Raw material cost is likely to rise as follows: I Current cost (Rs.) 8 10 Projected cost (Rs.) 9 B 11 OOO D 11 13 12 14 h. Labor cost will move up in accordance with inflation. 1. Sales promotion expenses per unit will not change J. Lease rentals will be payable in accordance with the 'lease rental schedules