Calculate Cost of Sales from information given below Net Factory Cost Rs 2 00 000 Opening stock of w...........

Costing - Phase (I & II) Overview of Cost and Management Accounting

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Calculate Cost of Sales from information given below:

Net Factory Cost: Rs. 2,00,000

Opening stock of work-in-progress: Rs. 10,000

Closing stock of work-in-progress: Rs. 20,000

Closing stock of finished goods: Rs. 20,000

Opening stock of finished goods: Rs. 10,000

Selling and Distribution overheads: Rs. 10,000

Administrative overheads: Rs. 30,000

Rs. 2,00,000/-

Rs. 1,90,000/-

Rs. 2,20,000/-

Rs. 2,30,000/-

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Explanation:

Cost of sales (COs) is calculated as: Prime cost (+) Factory overheads (+) administrative overheads (+) Selling and Distribution overheads or it is Net Works cost (+) administrative overheads (+) opening stock of Finished Goods (-) closing stock of finished Goods (+) Selling and Distribution overheads. So, in given problem Cost of sales = 2,00,000 (+) 30,000 (+) 10,000 (-) 20,000 (+)10,000=2,30,000/-