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	135,000
Prepaid Insurance	200	Common Stock	110,000
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)