Required:

You are required to prepare a statement showing the profit earned from the job

during the year ended $31$ March $2019,$ as well as an estimated price of a job which

is to be executed in the year $2019-20.$

You should charge the same percentage of profit on sales as was the case for the

the year $2019-20.$ Materials, wages, and chargeable expenses will be required at

$$50,000,$$$70,000,$ and $$20,000,$ respectively, for the job.

The various overheads should be recovered on the following basis while calculating the

estimated price:

Factory overheads as a percentage of direct wages

Administrative and selling and distribution overheads as a percentage of factory