QUESTION ONE Jabali engineering works has a machining shop in which it manufactures two auto parts; P1 and P2 out of forging F1 and F2. For the quarter ending December 2018, the following cost data are available: Consumption of raw materials- F1sh. 150,000 Consumption of raw materials-F2.. 200,000 Wages abd salaries. 150,000 Stores and spares.. 12,000 Repairs and maintenance.. 15,000 Power 16,000 Insurance 8,000 Depreciation. 50,000 Factory overheads. 68,000 Administrative overheads. 64,000 Distribution overheads. 75,000 Total cost.811,400 You are given the following further information: Production and sales of P1 and P2 were as under: P1 P2 Production (pieces) 6,000 4,000 Sale of above pieces (sh.) 480,000 520,000 Direct wages paid were sh. 36,000 in case of P1 and sh. 32,000 for P2, this basis is used for apportioning wages and salaries and factory overheads. Following machine hours were utilized for production of these products: P1 550 hours P2 450 hours Stores and Spares, Repairs and Maintenance, Power, insurance and Depreciation are charged to cost of both the products on the basis of machine hours used. Administrative overheads are apportioned on the basis of respective conversion costs while distribution overheads on the basis of their sales realization. All the production was sold out. Required Prepare cost sheets of both the products and work out profit earned on each of them. (15 marks)