QUESTION # 1 ABC is a manufacturer. The following balances were extracted from his books on 1 December 2010 RS Inventories (stocks ) 1 January 2010 : Raw materials 14,700 Work in progress 23,570 Purchases of raw material 75,600 Direct factory wages 62,140 Factory Rent 28,000 Factory management salaries 31,500 Office salaries 41,600 Sundry office expenses 9,870 Carriage inwards 2,000 Purchase return 1,000 Factory heat and light 2,500 Additional information : Inventories (stock ) 31 December 2010 : RS. Raw material 16,250 Work in progress 18,780 Required : Prepare the manufacturing account of ABC for the year ended 31 December 2010. Show clearly the cost of raw materials consumed , prime cost and cost of production QUESTION # 2 Following information relates to the Karachi Steel Manufacturing Company : RS Direct materials 25,000 Indirect materials 5,000 Direct labour 30,000 Indirect labour 4,500 Factory overhead (excluding indirect materials and indirect labour ) 15,000 Plant cost 500,000 Required : Compute the Prime costs ii. Conversion costs jii. Cost of production QUESTION # 3 From the following information prepare the manufacturing, trading and profit and loss accounts for the year ending 31 December 19X6 and the balance sheet as at 31 December 2012 for the firm of M. Ali. Rs RS. Purchase of raw materials 258,000 Fuel and light 21,000