Q1. The following details have been extracted from Sam Ltd.’s books of accounts for the year ending March 31, 2023. The manager of the company is shared and divides his time between the factory and the office in the ratio of 20:80. You are required to compute: (a)prime cost, (b) factory overhead, (c) factory cost, (d) over head and (e) cost of sale.

 

Stock of Materials: Opening Stock of Materials: Closing_ Direct Wages Indirect Wages 2,82,000.00 3,00,000.00 Materials Purchased during the year 12,48,000.00 3,57,600.00 24,000.00 Salaries for Administrative Staff 60,000.00 Freights: Inwards 48,000.00 Freights: Outwards Bad Debts W/Off 30,000.00 Cash Discount Allowed Repairs to Plant and Machinery_ 21,000.00 28,200.00 63,600.00 Rent, Rates and Taxes of Factory 18,000.00 Rent, Rates and Taxes of Office 9,600.00 Travelling Expenses 18,600.00 Salesmen's salaries and commission 50,400.00 Depreciation W/Off: Plant and Machinery 42,600.00 Depreciation W/Off: Furniture 3,600.00 Director's fees 36,000.00 Electricity Charges: Factory 72,000.00 Fuel Charges: Boiler General Charges Manager's Salary 96,000.00 37,200.00 72,000.00