Q1.
Differentiate between Direct Manufacturing Expenses and
Indirect Manufacturing expenses
see in detail
Q2.
Mr. Pankaj runs a factory which produces motor spares of
export quality. The following details were obtained about his manufacturing
expenses for the year ended on 31.3.2016.
|
|
|
Rs.
|
|
W.I.P.
|
-
Opening
|
3,90,000
|
|
|
-
Closing
|
5,07,000
|
|
Raw
Materials
|
-
Purchases
|
12,10,000
|
|
|
-
Opening
|
3,02,000
|
|
|
-
Closing
|
3,10,000
|
|
|
-
Returned
|
18,000
|
|
|
-
Indirect material
|
16,000
|
|
Wages
|
-
direct
|
2,10,000
|
|
|
-
indirect
|
48,000
|
|
Direct
expenses
|
-
Royalty on production
|
1,30,000
|
|
|
-
Repairs and maintenance
|
2,30,000
|
|
|
-
Depreciation on factory shed
|
40,000
|
|
|
-
Depreciation on plant & machinery
|
60,000
|
|
By-product
at
selling
price
|
|
20,000
|
You are required to prepare Manufacturing Account of Mr.
Pankaj for the year ended on 31.3.2016.
see in detail
Q3.
Following are the Manufacturing A/c, Creditors A/c and
Trading A/c provided by Ms. Shivi related to 2016-17. There are certain fi
gures missing from these accounts.
Raw Material A/c
|
Date
|
Particulars
|
Amount
Rs.
|
Date
|
Particulars
|
Amount
Rs.
|
|
|
To
Opening Stock A/c
|
1,00,000
|
|
By
Raw Material Consumed
|
?
|
|
|
To
Creditors A/c
|
?
|
|
By
Closing Stock A/c
|
?
|
Creditors A/c
|
Date
|
Particulars
|
Amount
Rs.
|
Date
|
Particulars
|
Amount
Rs.
|
|
|
To
Bank A/c
|
22,00,000
|
|
By
Balance b/d
|
15,00,000
|
|
|
To
Balance c/d
|
6,00,000
|
|
|
|
Manufacturing A/c
|
Particulars
|
Amount
Rs.
|
Particulars
|
Amount
Rs.
|
|
To
Raw Material Consumed
|
?
|
By
Trading A/c
|
17,94,000
|
|
To
Wages
|
3,50,000
|
|
|
|
To
Depreciation
|
2,00,000
|
|
|
|
To
Direct Expenses
|
2,44,000
|
|
|
Additional Information:
1) Purchase
of machinery worth Rs.10,00,000 has been omitted. Machinery are chargeable at a
depreciation rate of 10%.
2)Wages
include the following
Paid to Factory Workers – Rs.3,00,000
Paid to labour at office – Rs.50,000
3) Direct Expenses include following:
Electricity charges of Rs.80,000 of
which 30% pertained to offi ce.
Fuel Charges of Rs.20,000
Freight Inwards of Rs.35,000
Delivery charges to customers – Rs.20,000.
You are required to prepare revised
Manufacturing A/c, and Raw Material A/c.
see in detail
