Example : 1 : Prepare a statement of cost.

Example 1
Following information has been obtained from the records of left center corporation for the period from June 1 to June 30, 1998.

Cost of raw materials on June 1,1998	30,000
Purchase of raw materials during the month	4,50,000
Wages paid	2,30,000
Factory overheads	92,000
Cost of work in progress on June 1, 1998	12,000
Cost of raw materials on June 30, 1998	15,000
Cost of stock of finished goods on June 1, 1998	60,000
Cost of stock of finish Publish Post ed goods on June 30, 1998	55,000
Selling and distribution overheads	20,000
Sales	9,00,000
Administration overheads	30,000

Prepare a statement of cost.
Solution
Statement of cost of production of goods manufactured for the period ending on June 30, 1998.

Opening stock of raw materials Add-- purchase	30,000 4,50,000 ------------ 4,80,000 15,000
Less-- closing stock of raw material Value of raw materials consumed Wages Prime cost Factory overheads Add-- opening stock of work in progress Less-- closing stock of work in progress Factory cost Add-- Administration overhead Cost of production of goods manufactured Add--opening stock of finished goods		4,65,000 2,30,000 6,59,000 92,000 7,87,000 12,000 7,99,000 --- 7,99,000 30,000 8,29,000 60,000 8,89,000
Less-- closing stock of finished goods Cost of production of goods sold Add-- selling and distribution overheads Cost of sales Profit Sales		55,000 8,34,000 20,000 8,54,000 46,000 9,00,000