Question
ABC Ltd. incurs direct material cost ₹8,00,000, direct labour ₹5,00,000, and factory overheads 60% of direct labour. Administration overheads are ₹3,00,000 and selling & distribution overheads ₹2,00,000. The company sells 10,000 units at ₹250 each. Prepare a cost sheet and find the profit.
Solution
• Factory cost = 8,00,000 + 5,00,000 + (0.6 × 5,00,000) = ₹16,00,000. • Total cost = Factory + Admin + S&D = 16,00,000 + 3,00,000 + 2,00,000 = ₹21,00,000. • Sales = 10,000 × 250 = ₹25,00,000 • Profit = sales – total cost = 4,00,000
More Accounts Questions
- Under AS 6, which of the following cannot be considered a method of depreciation?
- Under the Liberalised Remittance Scheme (LRS), a resident individual can remit up to __________ per financial year for permitted capital and current accou...
- Opening Stock ₹ 2,00,000 Closing Stock ₹ 2,20,000 Purchases during the year ₹ 14,00...
- When an individual is unable to repay the overdraft availed from a bank, which type of risk is the bank primarily exposed to?
- What are the four generic business-level strategies that Porter identified?
- The accounting for 'Government Grants' is prescribed under:
- A company has Net Sales of ₹1,000 lakhs, Net Profit of ₹80 lakhs, Total Assets of ₹750 lakhs, and Equity of ₹250 lakhs. Calculate Return on Equity (ROE) u...
- Which statement is correct?
- U/s 208, it is obligatory for an assessee to pay advance tax where the tax payable is
- Forfeiture of shares occurs when a shareholder:
