Overhead refers to: (a) Direct or Prime Cost (b) All Indirect costs (c) only Factory indirect costs

Overhead refers to:

(a) Direct or Prime Cost

(b) All Indirect costs

(c) only Factory indirect costs
by

1 Answer

Answer :

(b) All Indirect costs
by

Related questions

State which of the following are the characteristics of service costing. 1. High levels of indirect costs as a proportion of total costs 2. Use of composite cost units 3. Use of equivalent units (a) (1) only (b) (1) and (2) only (c) (2) only (d) (2) and (3) only

Description : State which of the following are the characteristics of service costing. 1. High levels of indirect costs as a proportion of total costs 2. Use of composite cost units 3. Use of equivalent units (a) (1) only (b) (1) and (2) only (c) (2) only (d) (2) and (3) only

Last Answer : (b) (1) and (2) only

Blanket overhead rate is: (a) One single overhead absorption rate for the whole factory (b) Rate which is blank or nil rate (c) rate in which multiple overhead rates are calculated for each production department, service department etc. (d) Always a machine hour rate

Description : Blanket overhead rate is: (a) One single overhead absorption rate for the whole factory (b) Rate which is blank or nil rate (c) rate in which multiple overhead rates are calculated for each production department, service  department etc. (d) Always a machine hour rate

Last Answer : One single overhead absorption rate for the whole factory

During September, 300 labour hours were worked for a total cost of Rs 4800. The variable overhead expenditure variance was Rs 600 (A). Overheads are assumed to be related to direct labour hours of active working. What was the standard cost per labour hour? (a) Rs 14 (b) Rs 16.50 (c) Rs 17.50

Description : During September, 300 labour hours were worked for a total cost of Rs 4800. The variable  overhead expenditure variance was Rs 600 (A). Overheads are assumed to be related to direct labour  hours of active working. What was the standard cost per labour hour? (a) Rs 14 (b) Rs 16.50 (c) Rs 17.50

Last Answer : (a) Rs 14

Which of the following statements is/are correct? 1. A materials requisition note is used to record the issue of direct material to a specific job. 2. A typical job cost will contain actual costs for material, labour and production overheads, and non –production overheads are often added as a percentage of total production cost 3. The job costing method can be applied in costing batches (a) (1) only (b) (1) and (2) only (c) (1) and (3) only (d) (2) and (3) only

Description : Which of the following statements is/are correct? 1. A materials requisition note is used to record the issue of direct material to a specific job. 2. A typical job cost will contain actual costs for material, labour and production ... 1) and (2) only (c) (1) and (3) only (d) (2) and (3) only

Last Answer : (c) (1) and (3) only

A company calculates the prices of jobs by adding overheads to the prime cost and adding 30% to total costs as a profit margin. Job number Y256 was sold for Rs1690 and incurred overheads of Rs 694. What was the prime cost of the job? (a) Rs 489 (b) Rs 606 (c) Rs 996 (d) Rs 1300

Description : A company calculates the prices of jobs by adding overheads to the prime cost and adding 30% to  total costs as a profit margin. Job number Y256 was sold for Rs1690 and incurred overheads of Rs 694.  What was the prime cost of the job? (a) Rs 489 (b) Rs 606 (c) Rs 996 (d) Rs 1300

Last Answer : (b) Rs 606

Calculate the prime cost from the following information: Direct material purchased: Rs. 1,00,000 Direct material consumed: Rs. 90,000 Direct labour: Rs. 60,000 Direct expenses: Rs. 20,000 Manufacturing overheads: Rs. 30,000 (a) Rs. 1,80,000 (b) Rs. 2,00,000 (c) Rs. 1,70,000 (d) Rs. 2,10,000

Description : Calculate the prime cost from the following information: Direct material purchased: Rs. 1,00,000 Direct material consumed: Rs. 90,000 Direct labour: Rs. 60,000 Direct expenses: Rs. 20,000 Manufacturing overheads: Rs. 30,000 (a) Rs. 1,80,000 (b) Rs. 2,00,000 (c) Rs. 1,70,000 (d) Rs. 2,10,000

Last Answer : (c) Rs. 1,70,000

The cost per unit of a product manufactured in a factory amounts to Rs. 160 (75% variable) when the production is 10,000 units. When production increases by 25%, the cost of production will be Rs. per unit. (a) Rs. 145 (b) Rs. 150

Description : The cost per unit of a product manufactured in a factory amounts to Rs. 160 (75% variable) when the production is 10,000 units. When production increases by 25%, the cost of production will be Rs. per unit. (a) Rs. 145 (b) Rs. 150

Last Answer : (c) Rs. 152

Which of the following would explain an adverse variable production overhead efficiency variance? 1. Employees were of a lower skill level than specified in the standard 2. Unexpected idle time resulted from a series of machine breakdown 3. Poor Quality material was difficult to process (a) (1), (2) and (3) (b) (1) and (2) (c) (2) and (3) (d) (1) and (3)

Description : Which of the following would explain an adverse variable production overhead efficiency variance? 1. Employees were of a lower skill level than specified in the standard 2. Unexpected idle time resulted from a series of machine breakdown 3. ... b) (1) and (2) (c) (2) and (3) (d) (1) and (3)

Last Answer : (d) (1) and (3)

In ‘make or buy’ decision, it is profitable to buy from outside only when the supplier’s price is below the firm’s own ______________. (a) Fixed Cost (b) Variable Cost (c) Total Cost (d) Prime Cost

Description : In ‘make or buy’ decision, it is profitable to buy from outside only when the supplier’s price is below the firm’s own ______________. (a) Fixed Cost (b) Variable Cost (c) Total Cost (d) Prime Cost

Last Answer : (b) Variable Cost

A company's break even point is 6,000 units per annum. The selling price is Rs. 90 per unit and the variable cost is Rs. 40 per unit. What are the company's annual fixed costs? (a) Rs. 120 (b) Rs. 2,40,000

Description : A company's break even point is 6,000 units per annum. The selling price is Rs. 90 per unit and the variable cost is Rs. 40 per unit. What are the company's annual fixed costs? (a) Rs. 120 (b) Rs. 2,40,000

Last Answer : 5,40,000

A company makes a single product and incurs fixed costs of Rs. 30,000 per annum. Variable cost per unit is Rs. 5 and each unit sells for Rs. 15. Annual sales demand is 7,000 units. The breakeven point is: (a) 2,000 units (b) 3,000 units (c) 4,000 units (d) 6,000 units

Description : A company makes a single product and incurs fixed costs of Rs. 30,000 per annum. Variable cost per unit is Rs. 5 and each unit sells for Rs. 15. Annual sales demand is 7,000 units. The breakeven point is: (a) 2,000 units (b) 3,000 units (c) 4,000 units (d) 6,000 units

Last Answer : (b) 3,000 units

3. S produces and sells one product, P, for which the data are as follows: Selling price Rs 28 Variable cost Rs 16 Fixed cost Rs 4 The fixed costs are based on a budgeted production and sales level of 25,000 units for the next period(a) 10.1% decrease (b) 11.2% decrease (c) 13.3% decrease (d) 16.0% decrea

Description : 3. S produces and sells one product, P, for which the data are as follows: Selling price Rs 28 Variable cost Rs 16 Fixed cost Rs 4 The fixed costs are based on a budgeted production and sales level of 25 ... period(a) 10.1% decrease (b) 11.2% decrease (c) 13.3% decrease (d) 16.0% decrease

Last Answer : (a) 10.1% decrease

The actual output of 162,500 units and actual fixed costs of Rs. 87000 were exactly as budgeted. However, the actual expenditure of Rs 300,000 was Rs. 18,000 over budget. What was the budget variable cost per unit?

Description :  The actual output of 162,500 units and actual fixed costs of Rs. 87000 were exactly as budgeted.  However, the actual expenditure of Rs 300,000 was Rs. 18,000 over budget. What was the budget variable cost per unit?

Last Answer : (a) Rs 1.20

Sunk costs are: (a) relevant for decision making (b) Not relevant for decision making (c) cost to be incurred in future (d) future costs

Description : Sunk costs are: (a) relevant for decision making (b) Not relevant for decision making (c) cost to be incurred in future (d) future costs

Last Answer : (b) Not relevant for decision making

Cost Unit is defined as: (a) Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed (b) A location, person or an item of equipment or a group of these for which costs are ascertained and used for cost control. (c) Centres having the responsibility of generating and maximising profits (d) Centres concerned with earning an adequate return on investment

Description : Cost Unit is defined as: (a) Unit of quantity of product, service or time in relation to which costs may be ascertained or  expressed (b) A location, person or an item ... the responsibility of generating and maximising profits (d) Centres concerned with earning an adequate return on investment

Last Answer : Unit of quantity of product, service or time in relation to which costs may be ascertained or  expressed

In element-wise classification of overheads, which one of the following is not included — (a) Fixed overheads (b) Indirect labour (c) Indirect materials (d) Indirect expenditure.

Description : In element-wise classification of overheads, which one of the following is not included — (a) Fixed overheads (b) Indirect labour (c) Indirect materials (d) Indirect expenditure.

Last Answer : (a) Fixed overheads

Which of the following is an abnormal cause of Idle time: (a) Time taken by workers to travel the distance between the main gate of factory and place of their work (b) Time lost between the finish of one job and starting of next job (c) Time spent to meet their personal needs like taking lunch, tea etc.

Description : Which of the following is an abnormal cause of Idle time: (a) Time taken by workers to travel the distance between the main gate of factory and place of their  work (b) Time lost between the ... and starting of next job (c) Time spent to meet their personal needs like taking lunch, tea etc.

Last Answer : (d) Machine break downs

Service departments costs should be allocated to: (a) Only Service departments (b) Only Production departments (c) Both Production and service departments (d) None of the production and service departments

Description : Service departments costs should be allocated to: (a) Only Service departments (b) Only Production departments (c) Both Production and service departments (d) None of the production and service departments

Last Answer : (c) Both Production and service departments

Costs associated with the labour turnover can be categorised into: (a) Preventive Costs only (b) Replacement costs only (c) Both of the above (d) Machine costs

Description : Costs associated with the labour turnover can be categorised into: (a) Preventive Costs only (b) Replacement costs only (c) Both of the above (d) Machine costs

Last Answer : (c) Both of the above

(d) Rs 1.50 Q.61. CA Co manufactures a single product and has drawn up the following flexed budget for the year. 60% 70% 80% Rs Rs Rs Direct materials 120,000 140,000 160,000 Direct labour 90,000 105,000 120,000 Production overheads 54,000 58,000 62,000 Other overheads 40,000 40,000 40,000 Total Cost 304,000 343,000 382,000 What would be the total cost in a budget that is prepared at the 77% level of activity? (a) Rs 330,300 (b) Rs 370,300 (c) Rs 373,300 (d) Rs 377,300

Description : Q.61. CA Co manufactures a single product and has drawn up the following flexed budget for the year.  60% 70% 80%  Rs Rs Rs Direct materials 120,000 140,000 160,000 Direct labour 90,000 105,000 120,000 Production ... activity? (a) Rs 330,300 (b) Rs 370,300 (c) Rs 373,300 (d) Rs 377,300

Last Answer : (b) Rs 370,300

CG Co manufactures a single product T. Budgeted production output of product T during June is 200 units. Each unit of product T requires 6 labour hours for completion and CG Co anticipates 20 per cent idle time. Labour is paid at a rate of Rs7 per hour. The direct labour cost budget for March is (a) Rs 6,720 (b) 8,400 (c) 10,080 (d) 10,500

Description : CG Co manufactures a single product T. Budgeted production output of product T during June is  200 units. Each unit of product T requires 6 labour hours for completion and CG Co anticipates 20 per  cent idle time. Labour is paid at ... for March is (a) Rs 6,720 (b) 8,400 (c) 10,080 (d) 10,500

Last Answer : (d) 10,500

Which of the following is not a method of cost absorption? (a) Percentage of direct material cost (b) Machine hour rate (c) Labour hour rate (d) Repeated distribution method

Description : Which of the following is not a method of cost absorption? (a) Percentage of direct material cost (b) Machine hour rate (c) Labour hour rate (d) Repeated distribution method

Last Answer : d) Repeated distribution method

Uncontrollable costs are the costs which be influenced by the action of a specified member of an undertaking. (a) can not (b) can (c) may or may not (d) must

Description : Uncontrollable costs are the costs which be influenced by the action of a specified member of an  undertaking. (a) can not (b) can (c) may or may not (d) must

Last Answer : (a) can not

Cash flow statements (based on AS-3) should be prepared and presented under------------------ method. a) Direct b) Indirect c) Permanence d) None of these

Description : Cash flow statements (based on AS-3) should be prepared and presented under------------------ method. a) Direct b) Indirect c) Permanence d) None of these

Last Answer : b) Indirect

The 'total capital investment' for a chemical process plant comprises of the fixed capital investment and the (A) Overhead cost (B) Working capital (C) Indirect production cost (D) Direct production cost

Description : The 'total capital investment' for a chemical process plant comprises of the fixed capital investment and the (A) Overhead cost (B) Working capital (C) Indirect production cost (D) Direct production cost

Last Answer : (B) Working capital

Factory manufacturing cost is the sum of the direct production cost (A) Fixed charges and plant overhead cost (B) And plant overhead cost (C) Plant overhead cost and administrative expenses (D) None of these

Description : Factory manufacturing cost is the sum of the direct production cost (A) Fixed charges and plant overhead cost (B) And plant overhead cost (C) Plant overhead cost and administrative expenses (D) None of these

Last Answer : (A) Fixed charges and plant overhead cost

Statutory cost audit are applicable only to: (a) Firm (b) Company

Description : Statutory cost audit are applicable only to: (a) Firm (b) Company

Last Answer : (b) Company

Element/s of Cost of a product are: (a) Material only (b) Labour only (c) Expenses only (d) Material, Labour and expenses

Description : Element/s of Cost of a product are: (a) Material only (b) Labour only (c) Expenses only (d) Material, Labour and expenses

Last Answer : (d) Material, Labour and expenses

Responsibility Centre can be categorised into: (a) Cost Centres only (b) Profit Centres only (c) Investment Centres only (d) Cost Centres, Profit Centres and Investment Centres

Description : Responsibility Centre can be categorised into: (a) Cost Centres only (b) Profit Centres only (c) Investment Centres only (d) Cost Centres, Profit Centres and Investment Centres

Last Answer : (d) Cost Centres, Profit Centres and Investment Centres

Conversion cost is the sum total of: A. Direct material cost and direct wages cost B. Direct wages, direct expenses and factory overheads C. Indirect wages and factory overheads D. Indirect wages, direct wages & factory overheads

Description : Conversion cost is the sum total of: A. Direct material cost and direct wages cost B. Direct wages, direct expenses and factory overheads C. Indirect wages and factory overheads D. Indirect wages, direct wages & factory overheads

Last Answer : C. Indirect wages and factory overheads

Which of the following relationship is not correct is case of a chemical process plant? (A) Manufacturing cost = direct product cost + fixed charges + plant overhead costs (B) General expenses = administrative expenses + distribution & marketing expenses (C) Total product cost = manufacturing cost + general expenses (D) Total product cost = direct production cost + plant overhead cost

Description : Which of the following relationship is not correct is case of a chemical process plant? (A) Manufacturing cost = direct product cost + fixed charges + plant overhead costs (B) General ... manufacturing cost + general expenses (D) Total product cost = direct production cost + plant overhead cost

Last Answer : (D) Total product cost = direct production cost + plant overhead cost

Following information is available of PQR for year ended March, 2013: 4,000 units in process, 3,800 units output, 10% of input is normal wastage, Rs. 2.50 per unit is scrap value and Rs. 46,000 incurred towards total process cost then amount on account of abnormal gain to be transferred to Costing P&L will be:- (a) Rs. 2,500 (b) Rs. 2,000 (c) Rs. 4,000 (d) Rs. 3,500

Description : Following information is available of PQR for year ended March, 2013: 4,000 units in process, 3,800 units output, 10% of input is normal wastage, Rs. 2.50 per unit is scrap value and Rs. 46,000 incurred towards total process cost ... be:- (a) Rs. 2,500 (b) Rs. 2,000 (c) Rs. 4,000 (d) Rs. 3,500

Last Answer : (a) Rs. 2,500

Following information is available of XYZ Limited for quarter ended June, 2013 Fixed cost Rs. 5,00,000 Variable cost Rs. 10 per unit Selling price Rs. 15 per unit Output level 1,50,000 units

Description : Following information is available of XYZ Limited for quarter ended June, 2013 Fixed cost Rs. 5,00,000 Variable cost Rs. 10 per unit Selling price Rs. 15 per unit Output level 1,50,000 units

Last Answer : (a) Rs. 2,50,000

A budget which is prepared in a manner so as to give the budgeted cost for any level of activity is known as: (a) Master budget (b) Zero base budget ((c) Functional budget (d) Flexible budget

Description :  A budget which is prepared in a manner so as to give the budgeted cost for any level of activity is  known as:  (a) Master budget (b) Zero base budget ((c) Functional budget (d) Flexible budget

Last Answer : (d) Flexible budget

It is now expected that the variable production cost per unit and the selling price per unit will each increase by 10%, and fixed production cost will rise by 25%. What will be the new break even point? (a) 8,788 units (b) 11,600 units (c) 11,885 units (d) 12,397 units

Description : It is now expected that the variable production cost per unit and the selling price per unit will each increase by 10%, and fixed production cost will rise by 25%. What will be the new break even point? (a) 8,788 units (b) 11,600 units (c) 11,885 units (d) 12,397 units

Last Answer : (c) 11,885 units

A company manufactures a single product for which cost and selling price data are as follows: Selling price per unit - Rs. 12 Variable cost per unit - Rs. 8 Fixed cost for a period - Rs. 98,000 Budgeted sales for a period - 30,000 units

Description : A company manufactures a single product for which cost and selling price data are as follows: Selling price per unit - Rs. 12 Variable cost per unit - Rs. 8 Fixed cost for a period - Rs. 98,000 Budgeted sales for a period - 30,000 units

Last Answer : (a) 20%

The following information is available for the W hotel for the latest thirty day period. Number of rooms available per night 40 Percentage occupancy achieved 65% Room servicing cost incurred Rs. 3900 The room servicing cost per occupied room-night last period, to the nearest Rs, was: (a) Rs 3.25 (b) Rs 5.00 (c) Rs 97.50 (d) Rs 150.00

Description : The following information is available for the W hotel for the latest thirty day period. Number of rooms available per night 40 Percentage occupancy achieved 65% Room servicing cost incurred Rs. 3900 The room servicing cost per occupied room- ... (a) Rs 3.25 (b) Rs 5.00 (c) Rs 97.50 (d) Rs 150.00

Last Answer : (b) Rs 5.00

Calculate the most appropriate unit cost for a distribution division of a multinational company using the following information. Miles travelled 636,500 Tonnes carried 2,479 Number of drivers 20 Hours worked by drivers 35,520 Tonnes miles carried 375,200 Cost incurred 562,800 (a) Rs .88 (b) Rs 1.50 (c) Rs 15.84 (d) Rs28, 140

Description : Calculate the most appropriate unit cost for a distribution division of a multinational company using the following information. Miles travelled 636,500 Tonnes carried 2,479 Number of drivers 20 Hours worked by drivers 35,520 Tonnes miles ... 800 (a) Rs .88 (b) Rs 1.50 (c) Rs 15.84 (d) Rs28, 140

Last Answer : (d) Rs28, 140

. A job is budgeted to require 3,300 productive hours after incurring 25% idle time. If the total labour cost budgeted for the job is Rs36,300. What is the labour cost per hour( to the nearest cent)? (a) Rs 8.25 (b) Rs 8.80 (c) Rs 11.00 (d) Rs 14.67

Description : . A job is budgeted to require 3,300 productive hours after incurring 25% idle time. If the total labour  cost budgeted for the job is Rs36,300. What is the labour cost per hour( to the nearest cent)? (a) Rs 8.25 (b) Rs 8.80 (c) Rs 11.00 (d) Rs 14.67

Last Answer : (a) Rs 8.25

In process costing, if an abnormal loss arises, the process account is generally (a) Debited with the scrap value of the abnormal loss units (b) Debited with the full production cost of the abnormal loss units (c) Credited with the scrap value of the abnormal loss units

Description : In process costing, if an abnormal loss arises, the process account is generally (a) Debited with the scrap value of the abnormal loss units (b) Debited with the full production cost of the abnormal loss units (c) Credited with the scrap value of the abnormal loss units

Last Answer : (d) Credited with the full production cost of the abnormal loss units

. A Local Authority is preparing cash Budget for its refuse disposal department. Which of the following items would not be included in the cash budget? (a) Capital cost of a new collection vehicle (b) Depreciation of the machinery (c) Operatives wages (d) Fuel for the collection Vehicles

Description : . A Local Authority is preparing cash Budget for its refuse disposal department. Which of the  following items would not be included in the cash budget? (a) Capital cost of a new collection vehicle (b) Depreciation of the machinery (c) Operatives wages (d) Fuel for the collection

Last Answer : (b) Depreciation of the machinery

During a period 17, 500 labour hours were worked at a standard cost of Rs 6.50 per hour. The labour efficiency variance was Rs 7,800 favourable. How many standard hours were produced? (a) 1,200 (b) 16,300 (c) 17,500 (d) 18,700

Description : During a period 17, 500 labour hours were worked at a standard cost of Rs 6.50 per hour. The  labour efficiency variance was Rs 7,800 favourable. How many standard hours were produced? (a) 1,200 (b) 16,300 (c) 17,500 (d) 18,700

Last Answer : (d) 18,700

Allotment of whole item of cost to a cost centre or cost unit is known as: (a) Cost Apportionment (b) Cost Allocation (c) Cost Absorption (d) Machine hour rate

Description : Allotment of whole item of cost to a cost centre or cost unit is known as: (a) Cost Apportionment (b) Cost Allocation (c) Cost Absorption (d) Machine hour rate

Last Answer : (d) Machine hour rate

From the following information, calculate the extra cost of material by following EOQ: Annual consumption: = 45000 units Ordering cost per order: = Rs. 10 Carrying cost per unit per annum: = Rs. 10 Purchase price per unit = Rs. 50 Re-order quantity at present = 45000 units There is discount of 10% per unit in case of purchase of 45000 units in bulk. (a) No saving (b) Rs. 2,00,000 (c) Rs. 2,22,010 (d) Rs. 2,990

Description : From the following information, calculate the extra cost of material by following EOQ: Annual consumption: = 45000 units Ordering cost per order: = Rs. 10  Carrying cost per unit per annum: = Rs. 10  Purchase price per unit = Rs. ... ) No saving (b) Rs. 2,00,000 (c) Rs. 2,22,010 (d) Rs. 2,990

Last Answer : (d) Rs. 2,990

Cost of abnormal wastage is: (a) Charged to the product cost (b) Charged to the profit & loss account (c) charged partly to the product and partly profit & loss account (d) not charged at all.

Description : Cost of abnormal wastage is: (a) Charged to the product cost (b) Charged to the profit & loss account (c) charged partly to the product and partly profit & loss account (d) not charged at all.

Last Answer : (b) Charged to the profit & loss account

Calculate EOQ (approx.) from the following details: Annual Consumption: 24000 units Ordering cost: Rs. 10 per order Purchase price: Rs. 100 per Carrying cost: 5% (a) 310 (b) 400 (c) 290 (d) 300

Description : Calculate EOQ (approx.) from the following details: Annual Consumption: 24000 units Ordering cost: Rs. 10 per order Purchase price: Rs. 100 per unitCarrying cost: 5% (a) 310 (b) 400 (c) 290 (d) 300

Last Answer : (a) 310

Economic order quantity is that quantity at which cost of holding and carrying inventory is: (a) Maximum and equal (b) Minimum and equal(c) It can be maximum or minimum depending upon case to case. (d) Minimum and unequal

Description : Economic order quantity is that quantity at which cost of holding and carrying inventory is: (a) Maximum and equal (b) Minimum and equal (c) It can be maximum or minimum depending upon case to case. (d) Minimum and unequal

Last Answer : (b) Minimum and equal

Calculate value of closing stock from the following: Opening stock of finished goods (500 units) : Rs. 2,000 Cost of production (10000 units) : Rs. 50,000Closing stock (1000 units):? (a) Rs. 4,000 (b) Rs. 4,500 (c) Rs. 5,000 (d) Rs. 6,000

Description : Calculate value of closing stock from the following: Opening stock of finished goods (500 units) : Rs. 2,000 Cost of production (10000 units) : Rs. 50,000Closing stock (1000 units):? (a) Rs. 4,000 (b) Rs. 4,500 (c) Rs. 5,000 (d) Rs. 6,000

Last Answer : (b) Rs. 4,500

Calculate cost of sales from the following: Net Works cost: Rs. 2,00,000 Office & Administration Overheads: Rs. 1,00,000 Opening stock of WIP: Rs. 10,000 Closing Stock of WIP: Rs. 20,000 Closing stock of finished goods: Rs. 30,000 There was no opening stock of finished goods. Selling overheads: Rs. 10,000 (a) Rs. 2,70,000 (b) Rs. 2,80,000 (c) Rs. 3,00,000 (d) Rs. 3,20,000

Description : Calculate cost of sales from the following: Net Works cost: Rs. 2,00,000 Office & Administration Overheads: Rs. 1,00,000 Opening stock of WIP: Rs. 10,000 Closing Stock of WIP: Rs. 20,000 Closing stock of finished goods: Rs. ... Rs. 2,70,000 (b) Rs. 2,80,000 (c) Rs. 3,00,000 (d) Rs. 3,20,000

Last Answer : (b) Rs. 2,80,000