Question
What would be the amount of profits?
src="https://www.ixambee.com/questionimage/Chapter/1638415420-7.PNG" alt="" />Solution
Factory Costs total is Prime Cost + Factory Overheads + Opening Stock of WIP β Closing Stock of WIP And Cost of Production would be Factory Cost + Office & Administration Overheads Cost of goods available for sale = Cost of Production + Selling & distribution overheads + Opening Stock of finished goods Cost of Goods Sold = Cost of goods available for sale β Closing Stock of Finished goods Profit = Sales β Cost of Goods Sold
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