Q.2.

The following extract refers to a commodity for the half year ending 31st March 2008 prepare a cost statement

Advertising discount allowed and selling cost Rs.1. per ton sold .Production during the year is 16,000 tons .prepare a cost sheet Hint: Total cost or cost of sales =255000 Profit=45000 Sales=300000 Ans:

Opening stock Less Closing stock Purchases Cost of material consumed Direct wages Carriage Inward Prime Cost Rent, rates Cost of factory

20000 -22240 120000 117760 100000 1440 101440

117760

219200 219200

40000 8000 48000

267200 267200

Opening Stock WIP Closing stock WIP Works Cost Office Overhead Cost of Production Opening stock Less Closing stock of finished goods Cost of Goods sold Adverting Discount and selling Cost of sales Profit Sales

4800 -16000 -11200

256000 256000

16000 -32000 -16000

256000

240000 240000

15000 255000 45000 300000