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Calculate prime cost , factory cost, cost of production,cost of sales and profit from the following. Direct material Rs.1,50,000 Direct labour Rs.70,000 Direct expenses Rs.5,000 Factory expenses Rs.15,000 Administrative expenses Rs.10,000 Selling expenses Rs.3,500 Sales Rs.2,75,000?
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Calculate prime cost , factory cost, cost of production,cost of sales ...
Calculation of Cost and Profit:
1. Prime Cost:
Prime cost is the total of direct material, direct labour and direct expenses.
Prime Cost = Direct Material + Direct Labour + Direct Expenses
Prime Cost = Rs.1,50,000 + Rs.70,000 + Rs.5,000
Prime Cost = Rs.2,25,000
2. Factory Cost:
Factory cost is the total of prime cost and factory expenses.
Factory Cost = Prime Cost + Factory Expenses
Factory Cost = Rs.2,25,000 + Rs.15,000
Factory Cost = Rs.2,40,000
3. Cost of Production:
Cost of production is the total of factory cost and administrative expenses.
Cost of Production = Factory Cost + Administrative Expenses
Cost of Production = Rs.2,40,000 + Rs.10,000
Cost of Production = Rs.2,50,000
4. Cost of Sales:
Cost of sales is the total of cost of production and selling expenses.
Cost of Sales = Cost of Production + Selling Expenses
Cost of Sales = Rs.2,50,000 + Rs.3,500
Cost of Sales = Rs.2,53,500
5. Profit:
Profit is the difference between sales and cost of sales.
Profit = Sales - Cost of Sales
Profit = Rs.2,75,000 - Rs.2,53,500
Profit = Rs.21,500
Therefore, the prime cost is Rs.2,25,000, the factory cost is Rs.2,40,000, the cost of production is Rs.2,50,000, the cost of sales is Rs.2,53,500 and the profit is Rs.21,500.
1. Prime Cost:
Prime cost is the total of direct material, direct labour and direct expenses.
Prime Cost = Direct Material + Direct Labour + Direct Expenses
Prime Cost = Rs.1,50,000 + Rs.70,000 + Rs.5,000
Prime Cost = Rs.2,25,000
2. Factory Cost:
Factory cost is the total of prime cost and factory expenses.
Factory Cost = Prime Cost + Factory Expenses
Factory Cost = Rs.2,25,000 + Rs.15,000
Factory Cost = Rs.2,40,000
3. Cost of Production:
Cost of production is the total of factory cost and administrative expenses.
Cost of Production = Factory Cost + Administrative Expenses
Cost of Production = Rs.2,40,000 + Rs.10,000
Cost of Production = Rs.2,50,000
4. Cost of Sales:
Cost of sales is the total of cost of production and selling expenses.
Cost of Sales = Cost of Production + Selling Expenses
Cost of Sales = Rs.2,50,000 + Rs.3,500
Cost of Sales = Rs.2,53,500
5. Profit:
Profit is the difference between sales and cost of sales.
Profit = Sales - Cost of Sales
Profit = Rs.2,75,000 - Rs.2,53,500
Profit = Rs.21,500
Therefore, the prime cost is Rs.2,25,000, the factory cost is Rs.2,40,000, the cost of production is Rs.2,50,000, the cost of sales is Rs.2,53,500 and the profit is Rs.21,500.
Community Answer
Calculate prime cost , factory cost, cost of production,cost of sales ...
Direct Material ₹ 150000
Direct Labour ₹ 70000
Direct Expenses ₹ 5000
Prime Cost ₹ 225000
Factory Expenses ₹ 15000
Prime Cost ₹ 225000
Factory Cost ₹ 240000
Administrative Expenses ₹ 10000
Factory Cost ₹ 240000
Cost of Production ₹ 250000
Selling Expenses ₹ 3500
Cost of Production ₹ 250000
Cost of Sales ₹ 253500
Profit = Sales - Cost of Sales
275000- 253500
Profit ₹ 21500
Direct Labour ₹ 70000
Direct Expenses ₹ 5000
Prime Cost ₹ 225000
Factory Expenses ₹ 15000
Prime Cost ₹ 225000
Factory Cost ₹ 240000
Administrative Expenses ₹ 10000
Factory Cost ₹ 240000
Cost of Production ₹ 250000
Selling Expenses ₹ 3500
Cost of Production ₹ 250000
Cost of Sales ₹ 253500
Profit = Sales - Cost of Sales
275000- 253500
Profit ₹ 21500
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Calculate prime cost , factory cost, cost of production,cost of sales and profit from the following. Direct material Rs.1,50,000 Direct labour Rs.70,000 Direct expenses Rs.5,000 Factory expenses Rs.15,000 Administrative expenses Rs.10,000 Selling expenses Rs.3,500 Sales Rs.2,75,000?
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Calculate prime cost , factory cost, cost of production,cost of sales and profit from the following. Direct material Rs.1,50,000 Direct labour Rs.70,000 Direct expenses Rs.5,000 Factory expenses Rs.15,000 Administrative expenses Rs.10,000 Selling expenses Rs.3,500 Sales Rs.2,75,000? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Calculate prime cost , factory cost, cost of production,cost of sales and profit from the following. Direct material Rs.1,50,000 Direct labour Rs.70,000 Direct expenses Rs.5,000 Factory expenses Rs.15,000 Administrative expenses Rs.10,000 Selling expenses Rs.3,500 Sales Rs.2,75,000? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculate prime cost , factory cost, cost of production,cost of sales and profit from the following. Direct material Rs.1,50,000 Direct labour Rs.70,000 Direct expenses Rs.5,000 Factory expenses Rs.15,000 Administrative expenses Rs.10,000 Selling expenses Rs.3,500 Sales Rs.2,75,000?.
Calculate prime cost , factory cost, cost of production,cost of sales and profit from the following. Direct material Rs.1,50,000 Direct labour Rs.70,000 Direct expenses Rs.5,000 Factory expenses Rs.15,000 Administrative expenses Rs.10,000 Selling expenses Rs.3,500 Sales Rs.2,75,000? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Calculate prime cost , factory cost, cost of production,cost of sales and profit from the following. Direct material Rs.1,50,000 Direct labour Rs.70,000 Direct expenses Rs.5,000 Factory expenses Rs.15,000 Administrative expenses Rs.10,000 Selling expenses Rs.3,500 Sales Rs.2,75,000? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculate prime cost , factory cost, cost of production,cost of sales and profit from the following. Direct material Rs.1,50,000 Direct labour Rs.70,000 Direct expenses Rs.5,000 Factory expenses Rs.15,000 Administrative expenses Rs.10,000 Selling expenses Rs.3,500 Sales Rs.2,75,000?.
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Calculate prime cost , factory cost, cost of production,cost of sales and profit from the following. Direct material Rs.1,50,000 Direct labour Rs.70,000 Direct expenses Rs.5,000 Factory expenses Rs.15,000 Administrative expenses Rs.10,000 Selling expenses Rs.3,500 Sales Rs.2,75,000?, a detailed solution for Calculate prime cost , factory cost, cost of production,cost of sales and profit from the following. Direct material Rs.1,50,000 Direct labour Rs.70,000 Direct expenses Rs.5,000 Factory expenses Rs.15,000 Administrative expenses Rs.10,000 Selling expenses Rs.3,500 Sales Rs.2,75,000? has been provided alongside types of Calculate prime cost , factory cost, cost of production,cost of sales and profit from the following. Direct material Rs.1,50,000 Direct labour Rs.70,000 Direct expenses Rs.5,000 Factory expenses Rs.15,000 Administrative expenses Rs.10,000 Selling expenses Rs.3,500 Sales Rs.2,75,000? theory, EduRev gives you an
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