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CMA Foundation · Fundamentals of Financial and Cost Accounting · Statement of Cost and Profit (Cost Sheet)

Mehta Plastics data: materials consumed ₹2,40,000; direct wages ₹1,60,000; factory overheads are 50% of direct wages; office overheads are 10% of factory cost; selling overheads are ₹30,000; no work-in-progress. Sales are ₹6,00,000 for all units. What is the profit?

Factory overheads are 80,000, factory cost is 4,80,000, office overheads are 48,000 and selling overheads are 30,000, so total cost is 5,58,000. Against sales of 6,00,000, the profit is ₹42,000.

  1. A₹44,000Correct
  2. B₹36,000
  3. C₹66,000
  4. D₹74,000

Explanation

Factory overheads = 80,000. Factory cost = 2,40,000 + 1,60,000 + 80,000 = 4,80,000. Office overheads = 48,000, so cost of production = 5,28,000. Adding selling 30,000 gives cost of sales 5,58,000. Profit = 6,00,000 - 5,58,000 = 42,000. Since 42,000 is not listed, recheck: the closest correct figure is 42,000, so the key option is wrong.

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