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Q.1 Al Meera Engineering Company is listed in Muscat Securities Market. The total Capital Invested in a company is 20 Million in which loan from

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Q.1 Al Meera Engineering Company is listed in Muscat Securities Market. The total Capital Invested in a company is 20 Million in which loan from Bank was 5 Million. For the year 2019 company has manufactured and Sold 1,000 Laptop sets. The following are the particulars regarding the laptop sold and manufactured by them. Materials in the Stock were OMR 30,000 and they purchased additional material of OMR 50,000 and paid for Carriage 4,300. Wages amounting to OMR 12,500 has been incurred. They have spent the following expenses on Gas and Water for Factory OMR 10,000; for Office OMR 4,200, Rent and Insurance for Factory OMR 5,450, for Office OMR 7,150, Total of Managers salary amounting to 25,000 which belongs to 1/4th for Factory manager and 3/4th to Office manager. Depreciation were calculated on diminishing balance method for the machineries in the office and factory and the value of depreciation for the Office was OMR 1,000 and Factory was OMR 2,400. Supervisor was Paid salary of OMR 800 Once the goods were manufacture all the finished products were kept in a warehouse for which company has spent OMR 9,000 for its rent. There was Opening balance of finished goods of 10,000 and Closing Balance of Finished goods were 8,500. Work in process Opening 18,000, Work in process closing 12,000. One fourth of the warehouse was given for rent and the rent received by the company was OMR 2467. Total laptops manufactured has been sold at OMR 250,000 and in order to make a sales Company has spent on Advertisement OMR 12,500, Sales man expenses OMR 5,700, Show room cleaning expenses and Insurance were OMR 1,550 and OMR 180 and Sales Managers Salary of OMR 13,000.Free transportation were given to Customers and the company has spent OMR 27,000 for transporting the goods to different areas. In the Year end Company has paid Dividends to shareholders for OMR 51,288 and Paid Interest on the Bank Loan of OMR 11,555 a. You are required to prepare a Cost Sheet from the relevant information provided in Al Meera Engineering Company (4.5 Marks) b. Al Meera Engineering Company was expecting to earn a profit of 20% on Cost of Production. You are required to identify from the cost sheet whether the company has earned the profit as per their expectations or not. If not find out the difference in profit which the company has earned and the company has expected. (0.5 Mark)

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