Question No. 1 M/s. ABC and Co presented the following data on 15 January 2010: - (10) (20) Material A 20,000 units @ 5 Rs. Per unit, Material B 30,000 units @ 6.5 Rs. Per unit Work in Process 50,000 Rs. Finished Goods 67,000 Rs. During the period company purchased 1,200,000 units of Material A and 160,000 units of material B. The prices were 10% more than the last year prices for both of the materials. Material produces 2 units of finished goods and each unit of finished goods requires 2 hours of labor and 1.5 hours of machine. Labor is paid @ 6 Rs. Per hour and FOH is applied @ 5 Rs. Per machine hour. At the end of the period 8000 units of Material A were in hand. 10000 units of Material B were also in hand. It is the company's strategy to maintain the opening and closing inventories of WIP and FG same. In the last year the company constructed its price by taking 40% margin which the company is planning to increase 10% more by this time. Marketing and administrative expenses are 5% of margin. Required: - Construct an income statement for the period