Reference no: EM132549318

ABC Leather Manufacturing Company makes export quality leather jackets. Following data for the year ended June 30, 2018 has been provided by the company :

Inventories (01-07-2017) :

Raw Materials Rs. 26,000

Goods In Process Rs. 44,000

Finished Goods Rs. 60,000.

During the accounting period, following activities were observed :

Raw Materials purchased Rs. 5,95,000              Purchase Returns Rs. 9,500

Sales Rs. 9,95,800                                       Sales Returns Rs. 8,800

Purchase Discount Rs. 6,500                          Freight in Rs. 8,750

Import Duty Rs. 15,500                                 Manufacturing Expenses Rs. 10,000

Machine Repairs Rs. 8,600                             Factory Light & Heat Rs. 7,000

Factory Insurance Rs. 9,750                          Direct Labor Rs. 55,800

Foremen Salary Rs. 90,000                            Factory supplies expenses Rs. 8,700

Depreciation expense on building Rs. 9,000      Depreciation Plant & Machinery Rs. 10,000

Depreciation on equipment Rs. 8,500

Additional Information :

Depreciation on building is apportioned as 70% to factory building and 30% to office building.

Depreciation on equipment is apportioned as 60% to marketing and 40% to administration.

Inventories as on 30-6-2018 :

Raw Material Rs. 41,500; Goods in Process Rs. 25,900; Finished Goods Rs. 79,500.

Required :

Question (a) Prepare Statement of Cost of Goods Manufactured.

Question (b) Income Statement for the year ended June 30, 2018.

Question (c) Give one example of direct and indirect material for ABC Leather Manufacturing Company.