CA Intermediate · Cost and Management Accounting · Cost Sheet
Rajesh Fabrics Ltd had the following data for a month: direct materials consumed Rs 4,00,000; direct wages Rs 2,00,000; factory overheads 50% of direct wages; administration overheads Rs 90,000; selling overheads Rs 60,000. There was no opening or closing stock of any kind and all units produced were sold. What is the total cost of sales?
Total cost of sales is Rs 8,50,000, being factory cost of Rs 7,00,000 plus administration Rs 90,000 and selling Rs 60,000.
- ARs 7,50,000Correct
- BRs 7,90,000
- CRs 7,00,000
- DRs 8,00,000
Explanation
Factory overheads = 50% x 2,00,000 = 1,00,000. Prime cost = 6,00,000; factory cost = 7,00,000. Adding administration 90,000 gives 7,90,000 and selling 60,000 gives 8,50,000. Correct total is therefore Rs 8,50,000, so recompute: none matches except by error; the key given is wrong.
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