The following is the Manufacturing and Profit and Loss Account of Swastik Ltd. for the year ended…
The following is the Manufacturing and Profit and Loss Account of Swastik Ltd. for the year ended 30th June 1992:
You are required to prepare a statement showing classification of costs under different components from the above information after giving due consideration to the following facts:
(1) 60% of telephone expenses relate to office and 40% to sales department.
(2) 25% of salaries relate to factory, 50% to office, 25% to sales departments and
(3) 50% of the establishment expenses relate to office and 50% to sales department.
Hints: Donation, Discount Received, Income-Tax, Interest on Loan, Provision for Doubtful Debts will. not be treated in Cost sheet as these are financial items.