Question
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
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:
a. Heat & Light- in the ratio of 7:2:1 to factory, Office & Sales b. Power in the ratio of 8: 1: 1 to factory, Office & Sales c. Buildings depreciation in the ratio of 6: 2: 2 to factory, Office & Sales d. Rates & taxes - in the ratio of 9:1 to factory & Office Depreciation {
a. Buildings 5% b. Office appliances 6% c. Plant & Machinery 7%
Calculate the following:
a. Prime Costs (5 marks) b. Factory Overheads (5 marks) c. Cost of goods manufactured (5 marks) d. Cost of goods sold (5 marks) e. Sales & Distribution OH (5 marks) f. Administration (Office) OH (5 marks) g. Final total Cost of sales (5 marks) h. Profit & Loss per cost accounts (5 marks)
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: a. Heat & Light- in the ratio of 7:2:1 to factory, Office & Sales b. Power in the ratio of 8: 1: 1 to factory, Office & Sales c. Buildings depreciation in the ratio of 6: 2: 2 to factory, Office & Sales d. Rates & taxes - in the ratio of 9:1 to factory & Office | ||
Depreciation { a. Buildings 5% b. Office appliances 6% c. Plant & Machinery 7% | ||
| ||
Calculate the following: a. Prime Costs (5 marks) b. Factory Overheads (5 marks) c. Cost of goods manufactured (5 marks) d. Cost of goods sold (5 marks) e. Sales & Distribution OH (5 marks) f. Administration (Office) OH (5 marks) g. Final total Cost of sales (5 marks) h. Profit & Loss per cost accounts (5 marks) | ||
| ||
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