PROBLEM: 02-01- CLASS ROOM DISCUSSION (SC)

M/s Reliable Co. manufactures and sales various electrical items. The following data (Rs ‘000) refer to the
performance of the Company for the year 2017-2018:
(Rs ‘000)

Sales revenue ................................................................................................................................. 500,000

Work-in-process inventory, March 31 .......................................................................................... 20,000
Work-in-process inventory, April 1 ................................................................................................ 25,000
Selling and administrative expenses ................................................................................................... 50,000
Income tax expense ......................................................................................................................... 40,000
Purchases of raw material ................................................................................................................ 100,000
Raw-material inventory, March 31 ............................................................................................. 15,000
Raw-material inventory, April 1.................................................................................................... 30,000
Direct labor .................................................................................................................................... 110,000
Utilities: plant .................................................................................................................................. 18,000
Depreciation: plant and equipment .................................................................................................... 25,000
Finished-goods inventory, March 31 ........................................................................................... 40,000
Finished-goods inventory, April 1................................................................................................. 15,000
Indirect material used ...................................................................................................................... 6,000
Indirect labor .................................................................................................................................. 8,000
Other manufacturing overhead .......................................................................................................... 38,000

You are required to prepare the followings for M/S Reliable Co.:

1. Schedule of cost of goods manufactured for the year.

2. Schedule of cost of goods sold for the year.
3. Income statement for the year.