Problem set 2 Q1 A distraught employee, Mr. Unsatisfied, put a torch to a manufacturing plant on a blustery February 26. The resulting blaze destroyed the plant and its contents. Fortunately, certain accounting records were kept in another building. They reveal the following from Jan 1 to Feb 28, current year DM purchased Rs 16 lacs; WIP , Jan 1 Rs. 3.4 lacs; DM , Jan 1 Rs. 1.6 lacs; FG, Jan 1 Rs. 3.0 lacs; Revenues Rs 50.0 lacs; DL Rs 18.00 lacs; PC Rs 29.40 lacs; Indirect factory costs - 40% of Conversion cost; COG available for sale - Rs 45.00 lacs; Gross margin %age based on revenue 20% Calculate the FG stock, WIP stock and DM stock on FEB 28