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PRIME COST
Prime
FACTORY COST
Factory Cost = Prime cost + Factory overheads Factory overheads = Indirect Material + Indirect Labour + Indirect Expenses
ADJUSTMENT FOR STOCK OF WORK-INPROGRESS From the following information calculate the works cost. (All figures in Rs.) Direct material 80,000 Direct Labour 22,000 Direct Expenses 5,000 Factory overheads 12,000 Work-in-progress: Opening stock 13,000 Closing stock 7,000
Direct material 90,000 Direct Labour 32,000 Direct Expenses 9,000 Factory overheads 25,000 Office and administration overheads 18,000
Cost of goods sold = Total cost of production + Opening stock of Finished goods Closing stock of finished goods
SALES