The following information are obtained from the books of accounts of ABC Ltd for the year ended 2021 Debit (Rs ) Credit (Rs ) Inventories Raw materials 100000 WIP 100000 Finished Goods 100000 Office Appliances 50000 Plant Machinery 50000 Buildings 50000 Sales 800000 Sales Return 10000 Sales Rebates 20000 Materials purchased 300000 Freight on materials 30000 Purchase returns 15000 Direct Labour 200000 Direct expenses 60000 Indirect material 35000 Indirect Labour 25000 Factory supervisor 6000 Factory repairs 5000 Heat light 75000 Power 4000 Rates taxes 7000 Factory other expenses 9000 Sales commission 12000 Sales promotion 32000 Distribution salaries 22000 Office salaries 42000 Interest on borrowed funds 1000 Dividend 16000 Bad debts 11000 Others Information Closing Inventories Raw materials Rs 150000 WIP Rs 160000 FG 90000 Accrued Expenses Direct Labour Rs 12000 Indirect Labour Rs 5000 Interest on borrowed funds Rs 7000 Distribution of common expenses Heat Light in the ratio of 7 2 1 to factory, Office Sales Power in the ratio of 8 1 1 to factory, Office Sales Buildings depreciation in the ratio of 6 2 2 to factory, Office Sales Rates taxes in the ratio of 9 1 to factory Office Depreciation Buildings 5 Office appliances 6 Plant Machinery 7 Calculate the following Prime Costs (5 marks) Factory Overheads (5 marks) Cost of goods manufactured (5 marks) Cost of goods sold (5 marks) Sales Distribution OH (5 marks) Administration (Office) OH (5 marks) Final total Cost of sales (5 marks) Profit Loss per cost accounts (5 marks)

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Posted on May 14, 2024

. The following information are obtained from the books of accounts of ABC Ltd for the year ended 2021.

	Debit (Rs.)	Credit (Rs.)
Inventories:
Raw materials	100000
WIP	100000
Finished Goods	100000

Office Appliances	50000
Plant & Machinery	50000
Buildings	50000

Sales		800000
Sales Return	10000
Sales Rebates	20000

Materials purchased	300000
Freight on materials	30000
Purchase returns		15000

Direct Labour	200000
Direct expenses	60000

Indirect material	35000
Indirect Labour	25000
Factory supervisor	6000
Factory repairs	5000
Heat & light	75000
Power	4000
Rates & taxes	7000
Factory other expenses	9000

Sales commission	12000
Sales promotion	32000
Distribution salaries	22000
Office salaries	42000

Interest on borrowed funds	1000
Dividend		16000
Bad debts	11000

Others Information

Closing Inventories: Raw materials Rs 150000: WIP Rs 160000: FG - 90000
Accrued Expenses: Direct Labour Rs. 12000: Indirect Labour Rs. 5000: Interest on borrowed funds- Rs. 7000
Distribution of common expenses: Heat & Light- in the ratio of 7:2:1 to factory, Office & Sales Power in the ratio of 8: 1: 1 to factory, Office & Sales Buildings depreciation in the ratio of 6: 2: 2 to factory, Office & Sales Rates & taxes - in the ratio of 9:1 to factory & Office
Depreciation { Buildings 5% Office appliances 6% Plant & Machinery 7%

Calculate the following: Prime Costs (5 marks) Factory Overheads (5 marks) Cost of goods manufactured (5 marks) Cost of goods sold (5 marks) Sales & Distribution OH (5 marks) Administration (Office) OH (5 marks) Final total Cost of sales (5 marks) Profit & Loss per cost accounts (5 marks)