Q 2From the following particulars of a manufacturing firm, prepare a statement showing:

Materials used in manufacturing OMR 60000

Materials used in primary packing OMR 10000

Materials used in selling the product OMR 1500

Materials used in the factory OMR 750

Administrative expenses OMR 1250

Depreciation on office building OMR 750

Depreciation on factory building OMR1750

Materials used in the office OMR 1250

Wages - production OMR 10000

Wages - factory supervision OMR 2000

Indirect expenses - factory OMR 1000

Selling expenses OMR 3500

Audit charges OMR 250

Bank service charges OMR 100

Freight on materials purchased OMR 5000

Advertising Expenses OMR 1250

Profit OMR 25% on cost of production

Calculate :

(a) Prime Cost (b) Works Cost

(c) Cost of Production (d) Cost of Sales and (e) Profit.