Prepare income statement from the below information. Show manufacturing cost, cost of goods manufactured and cost of goods sold in the statement. Direct Material opening stock is Rs.1,572,400, Purchases is Rs.8,420,000, purchase return is Rs.42,000 closing raw material is Rs1,270,000. Conversion cost total is Rs. 11,352,300. Calculate Direct labor separately in the statement. WIP opening stock is Rs.2,338,000 and WIP closing stock is Rs.1,303,200. Opening finished goods is Rs. 966,100 and Closing finished goods is Rs.658,000. Sales is Rs.25,000,000. Q.2. Casual sports limited has two production departments which are Machining and Assembling and one maintenance service department . The below budgeted estimates are for year 1. Particulars Machining Assembly Maintenance Total No of employees 160 120 120 400 Floor Area (Sq/mtr) 7,000 5,000 4,000 16,000 Power (Kilowatt hours) 70,000 52,500 17,500 140,000 Direct Machine Hours 14,000 400 - 14,400 Direct Labor hours 1,000 6,000 - 7,000 Information: Indirect material $300 $268 $320 $888 Indirect wages $2,720 $1,480 $860 $5,060 Value of machinery $52,000 $48,000 $100,000 Below is annual budgeted overheads in: USD ($) Rent 12,800 Machine depreciation 10,000 Power 7,200 Supervision of employees 6,400 Indirect material 888 Indirect Labor 5,060 Total overheads 42,348 Required: a) Prepare overhead allocation sheet and reapportion maintenance department cost to the two production departments on the basis of value of machinery. ( 6 ) b) Calculate overheads absorption rates for each production department based on machine hours for Machining department and direct labor hours for Assembling department. (3) c) Make a job order cost sheet for Job no 001 and calculate selling price if the profit margin is 20% of selling price. Consider the below information. (6) Machining Assembly Direct material in $ 3,500 100 Direct labor in $ 500 1,400 Machine hours 100 10 Direct Labor hours 20 60