Question 3: The Muscat Auto ltd. Supplies you the following information and requires you to prepare cost sheet.

Stock of raw materials on 1^st Sept. 2002 75,000

Stock of raw materials on 30^th sept. 2002 91,500

Direct wages 52,500

Indirect wages 2,750

Sales 200,000

Work-in-progress on 1^st Sept, 2002 28,000

Work-in-progress on 30^th Sept 2002 35,000

Purchases of raw materials 66,000

Factory rent, rates, and power 15,000

Depreciation of plant and machinery 3,500

Expenses on purchases 1,500

Carriage outward 2,500

Advertising 3,500

Office rent and taxes 2,500

Travelers wages and commission 6,500

Stock of finished goods on 1^st Sept, 2002 54,000

Stock of finished goods on 30^th Sept, 2002 31,000