Question

1. From the following details calculate Prime cost, Factory cost, cost of production, Cost of Sales and Profit.

                                                                                                                 [Currency in SAR]

Direct Material		120,000
Direct wages		40,000
Wages for foreman		5,000
Electric Power		1,000
Lighting: Factory Office		3,000 1,000
Store keeper’s wages		2,000
Oil &Water		1,000
Rent: Factory Office		10,000 2,500
Depreciation: Factory plant Office Premises		1,000 2,500
Consumable stores		5,000
Repairs &Renewals: Factory plant Office Premises		3,500 1,000
Manager’s salary		10,000
Director’s fees		2,500
Office stationery		1,000
Telephone Charges		250
Postages and telegrams		500
Carriage outward		800
Salesmen’s Salaries		2,500
Travelling Expenses		1,000
Advertising		3,000
Warehouse Charges		1,000
Profit 25% on Sales
	Opening stock	Closing stock
Raw material	5,000   SAR	10,000 SAR
Work in progress	8,500 SAR	9,500 SAR

Answer 1