Oxwood Company is a metal and wood cutting manufacturer, selling products to the home construction market. Consider the following data for the month of October, 2016. Sandpaper 5,000 Material handling costs 1,75,000 Lubricants and coolants 12,500 Miscellaneous indirect manufacturing labour 1,00,000 Direct manufacturing labour 7,50,000 Direct materials (01-10-16) 1,00,000 Direct materials (31-10-16) 1,25,000 Finished Goods (01-10-16) 2,50,000 Finished Goods (31-10-16) 3,75,000 Work in progress (01-10-16) 25,000 Work in progress (31-10-16) 35,000 Plant leasing costs 1,35,000 Depreciation on plant equipment 90,000 Property taxes on plant equipment 10,000 Fire insurance on plant equipment 7,500 Direct materials purchased 11,50,000 Sales revenues 34,00,000 Marketing promotions 1,50,000 Marketing salaries 2,50,000 Distribution costs 1,75,000 Customer service costs 2,50,000   Prepare Cost sheet and find out the profit for the month of October 2016.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Oxwood Company is a metal and wood cutting manufacturer, selling products to the home construction market. Consider the following data for the month of October, 2016.

Sandpaper

5,000

Material handling costs

1,75,000

Lubricants and coolants

12,500

Miscellaneous indirect manufacturing labour

1,00,000

Direct manufacturing labour

7,50,000

Direct materials (01-10-16)

1,00,000

Direct materials (31-10-16)

1,25,000

Finished Goods (01-10-16)

2,50,000

Finished Goods (31-10-16)

3,75,000

Work in progress (01-10-16)

25,000

Work in progress (31-10-16)

35,000

Plant leasing costs

1,35,000

Depreciation on plant equipment

90,000

Property taxes on plant equipment

10,000

Fire insurance on plant equipment

7,500

Direct materials purchased

11,50,000

Sales revenues

34,00,000

Marketing promotions

1,50,000

Marketing salaries

2,50,000

Distribution costs

1,75,000

Customer service costs

2,50,000

 

Prepare Cost sheet and find out the profit for the month of October 2016.

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