QI. Al Nama Garment Manufacturing Company started with a Capital of OMR 400,000 in whic loan from Bank was 250,000 OMR. For the year 2018 company has manufactured and Sold 15,00 trousers. The following are the particulars relating to trousers manufactured and sold by them Opening Cloth in Stock were OMR 40,000 and they purchased additional cloth of OMR 35,00 and paid for transport 5,400, Amount paid to tailors OMR 12,000. They have spent the followin expenses on Electricity for Factory OMR 7,000; for Office OMR 5,300, Rent and Insurance fo Factory OMR 6,250, for office OMR 5,250, Total of Managers salary amounting to 25,000 whic belongs to 25% for Factory manager and 75% to Office manager and the amount of commissio paid to office manager was OMR 1,400, Depreciation were calculated on diminishing balanc method for the machineries in the office and factory and the value of depreciation for the Offic was OMR 1,200 and Factory was OMR 1,000. Foreman was Paid salary of OMR 900. Once the goods were manufacturing all the finished products were kept in a warchouse for which company has spent OMR 8,000 for its rent. There was Opening balance of finished goods of 13,00 and Closing Balance of Finished goods were 9,500. Work in process Opening 17,000, Work i process elosing 13,000. One third of the warehouse was given for rent and the rent received by th company was OMR 4,467. Total trousers manufactured has been sold at OMR 255,000 and in order to make a sales Compam has spent on Advertisement OMR 11,200, Sales man salaries OMR 3,800, Show room insuranc were OMR 4,730 and Sales Managers Salary of OMR 13,000. Delivery van expenses OMR 5,600 In the Year end Company has invested in shares for OMR 151,288 and Paid Interest on the Ban Loan of OMR 11,555 a. You are required to prepare a Cost Sheet from the relevant information provided in A Nama Garment Manufacturing Company b. AI Nama Garment Manufacturing Company was expecting to carn a profit of 45% on Tota Cost. You are required to identify from the cost sheet whether the company has carned th profit as per their expectations or not. If not find out the difference in profit which th aamad andl th

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
QI. AI Nama Garment Manufacturing Company started with a Capital of OMR 400,000 in which
loan from Bank was 250,000 OMR. For the year 2018 company has manufactured and Sold 15,000
trousers. The following are the particulars relating to trousers manufactured and sold by them.
Opening Cloth in Stock were OMR 40,000 and they purchased additional cloth of OMR 35,000
and paid for transport 5,400, Amount paid to tailors OMR 12,000. They have spent the following
expenses on Electricity for Factory OMR 7,000; for Office OMR 5,300, Rent and Insurance for
Factory OMR 6,250, for Office OMR 5,250, Total of Managers salary amounting to 25,000 which
belongs to 25% for Factory manager and 75% to Office manager and the amount of commission
paid to office manager was OMR 1,400, Depreciation were calculated on diminishing balance
method for the machineries in the office and factory and the value of depreciation for the Office
was OMR 1,200 and Factory was OMR 1,000. Foreman was Paid salary of OMR 900.
Once the goods were manufacturing all the finished products were kept in a warchouse for which
company has spent OMR 8,000 for its rent. There was Opening balance of finished goods of 13,000
and Closing Balance of Finished goods were 9,500. Work in process Opening 17,000, Work in
process closing 13,000. One third of the warchouse was given for rent and the rent received by the
company was OMR 4,467,
Total trousers manufactured has been sold at OMR 255,000 and in order to make a sales Company
has spent on Advertisement OMR 11,200, Sales man salaries OMR 3,800, Show room insurance
were OMR 4,730 and Sales Managers Salary of OMR 13,000. Delivery van expenses OMR 5,600.
In the Year end Company has invested in shares for OMR 151,288 and Paid Interest on the Bank
Loan of OMR 11,555
a. You are required to prepare a Cost Sheet from the relevant information provided in Al
Nama Garment Manufacturing Company
b. AI Nama Garment Manufacturing Company was expecting to carn a profit of 45% on Total
Cost. You are required to identify from the cost sheet whether the company has carned the
profit as per their expectations or not. If not find out the difference in profit which the
company has earned and the company has expected.
Transcribed Image Text:QI. AI Nama Garment Manufacturing Company started with a Capital of OMR 400,000 in which loan from Bank was 250,000 OMR. For the year 2018 company has manufactured and Sold 15,000 trousers. The following are the particulars relating to trousers manufactured and sold by them. Opening Cloth in Stock were OMR 40,000 and they purchased additional cloth of OMR 35,000 and paid for transport 5,400, Amount paid to tailors OMR 12,000. They have spent the following expenses on Electricity for Factory OMR 7,000; for Office OMR 5,300, Rent and Insurance for Factory OMR 6,250, for Office OMR 5,250, Total of Managers salary amounting to 25,000 which belongs to 25% for Factory manager and 75% to Office manager and the amount of commission paid to office manager was OMR 1,400, Depreciation were calculated on diminishing balance method for the machineries in the office and factory and the value of depreciation for the Office was OMR 1,200 and Factory was OMR 1,000. Foreman was Paid salary of OMR 900. Once the goods were manufacturing all the finished products were kept in a warchouse for which company has spent OMR 8,000 for its rent. There was Opening balance of finished goods of 13,000 and Closing Balance of Finished goods were 9,500. Work in process Opening 17,000, Work in process closing 13,000. One third of the warchouse was given for rent and the rent received by the company was OMR 4,467, Total trousers manufactured has been sold at OMR 255,000 and in order to make a sales Company has spent on Advertisement OMR 11,200, Sales man salaries OMR 3,800, Show room insurance were OMR 4,730 and Sales Managers Salary of OMR 13,000. Delivery van expenses OMR 5,600. In the Year end Company has invested in shares for OMR 151,288 and Paid Interest on the Bank Loan of OMR 11,555 a. You are required to prepare a Cost Sheet from the relevant information provided in Al Nama Garment Manufacturing Company b. AI Nama Garment Manufacturing Company was expecting to carn a profit of 45% on Total Cost. You are required to identify from the cost sheet whether the company has carned the profit as per their expectations or not. If not find out the difference in profit which the company has earned and the company has expected.
Expert Solution
steps

Step by step

Solved in 4 steps with 4 images

Blurred answer
Knowledge Booster
Presentation of Financial Statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education