Question No. 1: (6 marks)

Account Department of the Aqib Khan Co. provides the following data at end of June 2017, you are required to prepare Cost of Goods Manufactured; Cost of Goods Sold; find out Gross Profit / Loss & Net profit / Loss and Per Unit Manufacturing Cost at the Year ended May 30^th, 2009, assuming that Net Sales of Rs. 72,000, Marketing Expense 5%, Advertising Expense 1 % and Other Expense 3% of Net Sales; Net Purchases Rs. 36,000 and Direct Expenses are 1 % of Net Purchases; FOH 2/3 of Direct Labor. Units are produced during the period was 5,000.

Opening Inventory of Raw material is 4,145 and closing inventory 1.1 times of opening raw material. Opening Inventory of WIP is 1.25 times of opening raw material and closing inventory is 1.15 times of opening raw material. Opening Inventory of Finish goods is twice of opening raw material and closing inventory is 2.24 times of opening raw material.

gross profit is assumed as 33-1/3% and direct labor is 15000.