The following figures have been extracted from the records of Necon manufacturing company for the year ending 31st December, 2019. You are required to prepare a statement of cost showing : (a) Cost of raw materials consumed (b) Prime Cost (c) Factory Cost (d) Cost of production (e) Cost of goods sold (f)Total cost of goods sold and profit on sales. $ Stock of Raw Materials (1-1-19) 3,000 Stock of Raw Materials (31-12-19) 2,400 Purchases of Raw materials 14,000 Stock of work-in-progress (1-1-19) 1,000 Stock of work-in-progress (31-12-19) 800 Carriage inward 500 Manufacturing wages 4,000 Other direct expenses 200 Indirect wages 1,000 Experiment expenses 400 Wastage of materials 50 Factory overhead 7,000 Establishment on costs 2,000 Selling overhead 4,000 Distribution overhead 1,000 Stock of finished goods (1-1-19) 1,200 Stock of finished goods (31-12-19) 3,000 Sales 40,000
The following figures have been extracted from the records of Necon manufacturing company
for the year ending 31st December, 2019. You are required to prepare a statement of cost
showing :
(a) Cost of raw materials consumed
(b) Prime Cost
(c)
(d) Cost of production
(e) Cost of goods sold
(f)Total cost of goods sold and profit on sales.
$
Stock of Raw Materials (1-1-19) 3,000
Stock of Raw Materials (31-12-19) 2,400
Purchases of Raw materials 14,000
Stock of work-in-progress (1-1-19) 1,000
Stock of work-in-progress (31-12-19) 800
Carriage inward 500
Manufacturing wages 4,000
Other direct expenses 200
Indirect wages 1,000
Experiment expenses 400
Wastage of materials 50
Factory
Establishment on costs 2,000
Selling overhead 4,000
Distribution overhead 1,000
Stock of finished goods (1-1-19) 1,200
Stock of finished goods (31-12-19) 3,000
Sales 40,000
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