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In January 2019. Mr. Maan started furniture manufacturing business in Oman. His business is located in Ghala Industrial area He earned 15000 OMR profit in

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In January 2019. Mr. Maan started furniture manufacturing business in Oman. His business is located in Ghala Industrial area He earned 15000 OMR profit in 2019 in his first year of business. This year due to COVID -19 he faced lot of financial problem Since he is running furniture manutacturing business he is planning to reduce the cost of manufacturing to maintain the minimum level of profit.Mr. Waleed is working as cost accountant in his business. Mr. Maan told Mr. Waleed to prepare a cost sheet which is a statement of various costs incurred for manufacturing. This statement will help to determines the total cost or expenditure of the manufacturing operation Additional purpose of Cost Statement is competitive analysis of business. Improvement of business operation can be done with cost statement for manufacturing furniture raw material Labour wages and other production related expenses were paid Maan has divided all the cost into two part one is direct cost and other is indirect cost. Direct means directly engaged with manufacturing Indirect mean which indirectly engage with manufacturing. Those cost are not directly engaged they are called overhead During the year they had following cost details figures shown in OMR Purchased fied assets 1500. Opening stock of Raw Material 60000, Opening stock of Work in Progress 27500,Opening stock of Finished Goods61500, Closing stock of raw material 43500, Closing stock of Work in Progress 24750, Closing stock of Finished Goods 66750 Material Purchased 280000, Carriage Inward for Raw Material 2150, Material destroyed by fire 6650, loss one of asset 2500. Productive Wages 175000, Wages of Storekeeper 7500, Depreciation on Machinery 8200, Factory Rent 14000. Electricity Bal of Factory 6700, Renovation of Factory machinery 9300. Machinery Repors and Maintenance 2500, Office Cleaning 900, Depreciation on Office Computers 3500, Office Telephone Bill 650, Office Manager's Salary 11000, Office Stationery 1700 Fuel Inomice a 2750, Leon Charges 850, Salesperson Salary7750, Warehouse Rent 4500 Freight Outwards 550. Depreciation of Delivery $2350 Showroom Rent and Taxes 8500 Dividend pwd 1500, Advertisement Soo Additional information: Mr. Waleed has taken extra 6000 OMR in opening stock of raw material while preparing cost statement realized the actual opening Hock of raw matenatis 54000 and not 6000. As an Cost Accounting Student You are required to answer following questions based on the given ce Based on case study given select the correct totst of the NON COST Items: O a 3500 OMR Ob 9000 OMR O c. 6000 OMR O d. 7500 OMR According to given situation which of the following is applicable to follow for determining the total cost? O a Inventory Cost b. Marginal Cost DcCost Statement d. Cost Budgets Select from the following which do not includes a factory overhead based on given case? O a Storekeeper Wages b. Repair and Maintenance of Machinery O Deprecation on office computer @d. Depreciation Mediney The Total of all the direct cost me known as O a None of the given options Ob Total of Direct Cost O c Overheads O d. Element of Cost

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