Solution:

Computation of the value of Materials purchased

Particular Amount
Cost of goods sold excluding admn 56,000
exp
Add: Closing stock of finished goods 19,000
75,000
Less: Opening stock of finished goods 17,600
Cost of goods manufactured 57,400
Add: Closing stock of WIP 14,500
71,900
Less: Opening stock of WIP 10,500
Works Cost 61,400
Less: Fact OH (100/175X17,500) 10,000
Prime Cost 51,400
Less: Direct Labour 17,500
Cost of raw mat consumed 33,900
Add: Closing stock of raw mat 10,600
44,500
Less: Opening stock of raw mat 8,000
Value of mat purchased 36,500
 Statement of Cost and Profit
Particular Amount
Cost of raw mat consumed 33,900
+ Direct Labour Cost 17,500
Prime cost 51,400
+ Fact OH 10,000
Works cost 61,400
+ Opening stock of WIP 10,500
71,900
- Closing stock of WIP 14,500
Cost of goods manufactured 57,400
+ Opening stock of Finished goods 17,600
75,000
-closing stock of finished goods 19,000
Cost of goods sold 56,000
+ Admn exp 2,500
+ Selling exp 3,500
Cost of sales 62,000
Profit 13,000
Sales 75,000