Units Produced

Units Sold
Selling Price per unit
Opening Inventory
Raw Material
Work-in-progress
Finished Goods (2500 units @ Rs 39)
Closing Inventory
Raw Material
Work-in-progress
Costs:
Advertising
Entertainment and Travelling
Direct Labour
Indisrect Labour
Raw Material Purchased

29,000
26,000
50

105,000
40,000
90,000
85,000
480,000

Building Rent (80% Space used for Production, 20%

as office)
Utilities (factory)

40,000
108,000

20,000
50,000
97,500
30,000
40,000

Royalty paid for use of product patent @ Rs 1.50 per

unit produced
Maintenance, Factory
Rent of Special Production Equipment (Rs 7000 pa+ Rs
0.30 per unit produced)
Selling and Administrative Salary
Other Factory Overheads
Other Selling and Administrative Overheads

43,500
9,000

210,000
6,800
17,000

SWIFT Company
Income Staement
For the Month Ended August 31, 2009
Sales
Less Oerating Expenses
Indirect Labour
Utilities
Direct Labour
Depreciation, Factory Equipments
Raw Material Purchased
Depreciation, Sales Vechiles
Insurance
Rent
Selling and Administrative Salaries
Advertising

450000
12,000
15,000
70,000
21,000
165,000
18,000
4,000
50,000
32,000
75,000

462,000

Net Oerating Losses

Raw Material
WIP
Finished Goods

(12,000)

1-Aug
8,000
16,000
40,000

31-Aug
13000
21000
60000

Schedule of Cost of Goods Manufectured

Raw Matrial Consumed
Opening Stock
Raw Material Purchased
LESS: Closing Stock
Direct Labour
Direct Expenses
PRIME COST
Manufecturing Overheads
Indirect Labour
Building Rent
Utilities
Royalty
Factory Maintenance
Rent of Special Equipment
Other Factory Overheads
ADD: Opening WIP
LESS: Closing WIP
Cost of Goods Manufectured
Units
Cost per Unit

20,000
480,000
30,000

560,000
85,000
32,000
108,000
43,500
9,000
15,700
6,800
300,000
50,000
40,000

Cost of Goods Sold

Units
Opening Stock
Units Manufectured
Goods Available for Sale
Closing Stock
Defective Units
Cost of Goods Sold

470,000
90,000

310,000
870,000
29,000
30

Amount
2,500
29,000
31,500
5,200
300
26,000

97,500
870,000
967,500
156,000
9,000
802,500
Total

Sales
Cost of Goods Sold
Gross Margin
Selling and Administrative Overheads
Advertising
Entertainment and Travelling
Building rent
Salary
Other Overheads
Net Oerating Income
Loss on Defective Items
Cost of Items
Amount Realised
Income Before Interest and Tax

1,300,000
802,500
497,500
105,000
40,000
8,000
210,000
17,000

9,000
6,000

380,000
117,500

3,000
114,500

Per unit
50.00
30.87
19.13

14.62
4.52

Direct Material Consumed:

Opening Stock
Purchased
Closing Stock
Direct Labour
Prime Cost
Manufecturing Overheads
Indirect Labour
Utilities
Depreciation, Factory Equip
Insurance
Rent
Opening WIP
Closing WIP
Cost of Goods Manufectured

Opening Stock
Cost of Goods Manufectured
Closing Stock
Cost of Goods Sold

Sales
Cost of Goods Sold

8,000
165,000
13,000

12,000
9,000
21,000
3,000
40,000
85,000
16,000
21,000

Gross Margin
Selling and Admin OH
Utilities
Dep on Sales Vehicles
Insurance
Rent
Salaries
Advertisement
Net Operating Profit

6,000
18,000
1,000
10,000
32,000
75,000

160,000
70,000
230,000

80,000
310,000

40,000
310,000
350,000
60,000
290,000

450,000
290,000

160,000

142,000
18,000