Q. No. 1: The Ashar Corporation produces a household appliance that sells for Rs.90. The basic patent is held by the PCSIR, who is paid a royalty of Rs.5 on each unit sold. The royalty is considered as marketing expense. The data taken from books and other records of the company on December 31, 2010, are shown below: (9 Marks) Invertories: January December 31 Rs Finished goods 4,584 Rs 7,318 Work in process 8.159 Rs 4,002 Material Rs R$ 3,420 Rs 7.130 Rs Sales 387,000 Material purchased 90,563 Freight in 477 Direct labour 62.522 Indirect labour 5,026 Depreciation factory equipment 2,135 Miscellaneous factory overhead 7.908 Rent 5,000 Sales salaries 28.000 Royalties paid 21,500 Freight out 1,860 Miscellaneous marketing expenses 11,380 Office salaries 24,790 Uncollectible account expenses 280 Miscellaneous administrative expenses 8,700 Interest camned (C) 130 Purchase discount 840 Gain on sale of fixed assets 100 There were 120 units were in the inventory of finished goods on January 1 and 179 in the inventory on December 31. All units held on January I were sold during the year. Rent is to be apportioned 80% to manufacturing. 10% to marketing, and 10% to administration Required: An income statement for year ended December 31, 2010, supported by a schedule of cost of goods sold statement. by The number of units manufactured. Determine the cost of cach unit manufactured during the year. Q. No. 1: The Ashar Corporation produces a household appliance that sells for Rs.90. The basic patent is held by the PCSIR, who is paid a royalty of Rs.5 on cach unit sold. The royalty is considered as marketing expense. The data taken from books and other records of the company on December 31, 2010, are shown below: (9 Marks) Invertories: January 1 December 31 RS RS 8.159 Finished goods 4,584 Rs 7.518 Work in process Rs 4,002 Material 7,130 Rs 3.420 Rs Rs Sales 387,000 Material purchased 90,563 Freight in 477 Direct labour 62.522 Indirect labour 5.026 Depreciation factory equipment 2,135 Miscellaneous factory overhead Rent 5.000 7.908 Sales salaries 28.000 Royalties paid 21,500 Freight out 1.860 Miscellaneous marketing expenses 11,380 Office salaries 24,790 Uncollectible account expenses 280 Miscellaneous administrative expenses 8,700 Interest earned (Cr) 130 Purchase discount 840 Gain on sale of fixed assets 100 There were 120 units were in the inventory of finished goods on January and 179 in the inventory on December 31. All units held on January I were sold during the year. Rent is to be apportioned 80% to manufacturing, 10% to marketing, and 10% to administration Required: An income statement for year ended December 31, 2010, supported by a schedule of cost of goods sold statement. The number of units manufactured. Determine the cost of each unit manufactured during the year