In respect of a factory the following figures have been obtained for the year 2009

Cost of Materials
6,00,000
Wages for Labour
5,00,000
Factory Overheads
3,00,000
Administration Charges 3,36,000
Selling Charges 2,24,000
Distribution Charges 1,40,000
Profit 4,20,000
A work-order has been executed in 2010 and the
following expenses have been incurred
Materials 78,000
Labour 5,000
Assuming that in 2010 the rate of factory overheads has gone up by 20%; distribution
charges have gone down by 10% and selling & administration charges have each gone up by
122, at what priceshould the product be sold so as to earn the same rate of proñt on selling
price as it was in 2009 ? Factory overheads are based on Direct labour and Ádministration,
Selling, Distribution on Factory Cost.
 From the following particulars you are required to prepare statement showing : (a) the
cost of materials used, (b) the works cost, (a) the total cost, (d) the percentage of works overhead
to productive wages, and (e) the percentage of general overhead to work cost
Stock of finished goods 31st Dec., 2008 56,000
Stock of raw materials, 31st Dec., 2008 25,600
Purchases 5,84,000
Productive wages 3,97,600
Sales of finished goods.
Stock of finished goods, 31st Dec., 2009 11,84,000
Stock of raw materials, 31st Dec., 2009 60,000
Works overhead charges 27,200
Office and General expenses 87,472
The company is about to send a tender for a 71,048
large
that the materials required would cost 7 40,000 and the plant. The costing department estimates
wages to workmen for making the
plant would cost 7 24,000. The tender is to be made at a net profit of 20% on the selling price.
Show what the amount of the tender would be, if based on the
above percentages.
Opening materials inventory 70,000
Closing materials inventory 9,800
Purchase of materials 1,05,000
Factory wages 1,90,000
Factory expenses 35,000
Establishment expenses 20,000
Opening finished inventory Nil
Closing finished inventory 70,000
Sales 3,78,000

Ihe number of torches manufactured during the year was 8,000. The company wants to quote
be quoted are similar to those
1or the
supply of 2,000 torches for the coming year. The torches to
to increase by 10 per cent and factory labour
ne current year but cost of materials is expected
by 20 per cent.
so as to give the same percentage of profit
rrepare a statement showing the price to be quoted
that other costs will be the same as in
rnover as was realised during the current year assuming
he previous year.