Dr.
Particulars
To Materials consumed
To Direct wages
To Production Overheads
To Administration Overheads
To Selling and Distribution Overheads
To Preliminary Expenses written off
To Goodwill written off
To Fines
To Interest on Mortgage
To Loss on Sale of machine
To Taxation
To Net Profit for the year
(Rs.) Particulars
23,01,000 By Sales (30,000 units)
12,05,750 By Finished goods Stock (1,000 units)
6,92,250 By Work-in-progress:
3,10,375 Materials
3,68,875 Wages
22,750 Production Overheads
45,500
3,250 By Dividends received
13,000 By Interest on bank deposits
16,250
1,95,000
3,83,500
55,57,500
Cr.
(Rs.)
48,75,000
1,30,000
55,250
26,000
16,250 97,500
3,90,000
65,000
55,57,500
Omega Limited manufactures a standard unit.
The Cost Accounting records of Omega Ltd. show the following:
(i) Production overheads have been charged to work-in-progress at 20% on Prime cost.
(ii) Administration Overheads have been recovered at Rs. 9.75 per finished Unit.
(iii) Selling & distribution Overheads have been recovered at Rs. 13 per Unit sold.
(iv) The Under- or Over-absorption of Overheads has not been transferred to costing P/L A/c.
