Q # 1

The Following Trail Balance has been extracted from the books of ABC Company on December 31st, 2018:

Descriptions

Debit

Descriptions

Debit

Rs.

Rs.

Cash

8,200

Notes Payable

3,200

Accounts Receivable

41,000

Accounts Payable

12,350

Notes Receivable

23,000

Taxes Payable

1,500

Material (1-1-2018)

31,800

Rent Payable

1,020

Work in Process (1-1-2018)

4,000

Dividend Payable

500

Finished Goods (1-1--2018)

11,700

Sales

35,000

Prepaid Insurance

200

Common Stock

10,000

Machinery & Equipment

93,500

Retained Earnings

34,570

Purchased of Material

16,000

Accumulated Depreciation

20,000

Carriage inward

520

Direct Labor

33,000

Indirect Material

8,520

Indirect Labor

5,580

Depreciation - Factory

5,400

Utility - Factory

6,500

Carriage outward

460

Advertising

175

Salesmen Salary

565

Foreman Salary

7,000

Administrative Cost

1,020

318,140

318,140

During the year 70,000 units have been produced. The Following Further information are also available:

Inventories at December 31st, 2018

Rs.

Material

3,520

Work in Process

2,500

Finished Goods

10,000

Note: The factory overhead cost applied at the rate of 100% of direct labor cost.

The actual FOH cost incurred during the period Rs. 31,480.

Required

a) Statement of Cost of Goods Manufactured at December 31st, 2018. (Marks 5)

b) Statement of Profit or Loss for the year ended December 31st, 2018. (Marks 5)