COST

SHEET
 PROFORMA OF COST SHEET
Total
Particulars cost Cost per unit
Rs. Rs. Rs.
Direct Material xxx
Direct Labour xxx
Direct expenses xxx

Prime cost xxx xxx

Add: Works Overhead:

Indirect Material xxx
Indirect wages xxx
Factory rent and rates xxx
Factory lighting and heating xxx
Power and Fuel xxx
Repairs and maintenance xxx
Drawing office expenses xxx
Depreciation of Plant and Machinery xxx
Factory Stationery xxx
Insurance of factory xxx
Factory or Works Manager Salary xxx
Water consumption in factory xxx

Total works overhead xxx xxx

Works Cost/ Factory cost/ Manufacturing cost xxx xxx

Add: Office or Administration Overhead:

Office rent and taxes xxx
Office lighting xxx
Office Stationery xxx
Office furniture depreciation and repairs xxx
Office salaries xxx
Legal charges xxx
Bank commission xxx
Telephone and postages xxx
Office cleaning xxx

Total Administration Overhead xxx xxx

Cost of Production xxx xxx

Add: Selling and distribution expense xxx
Salesmen's salaries xxx
Salesmen's commission xxx
Showroom rent xxx
Showroom expenses xxx
Advertisement xxx
Sales office rent xxx
Travelling expenses xxx
Warehouse rent and rates xxx
Warehouse staff salaries xxx
Repairs and depreciation delivery van xxx
Carriage outward xxx

Total Selling and distribution expense xxx xxx

Cost of Sales xxx xxx

Profit/ Loss xxx xxx

Sales xxx xxx

PROBLEM NO. 1

Solution: COST SHEET FOR THE PERIOD ENDED 31ST DECEMBER, 2006

PARTICULARS Rs. Rs.

Raw material 33,000
Productive wages 38,000
Prime Cost 71,000
Add: Works Overhead
Unproductive wages 10,500
Factory rent and taxes 7,500
Factory lighting 2,200
Factory heating 1,500
Motive power 4,400
Haulage 3,000
Director’s fees 1,000
Factory cleaning 500
Estimating expenses 800
Factory stationery 750
Loose tools written off 600
Water supply 1,200
Factory insurance 1,100
Depreciation of plant & machinery 2,000 37,050
Factory cost 1,08,050
Add : Office Overhead
Director’s fees(office) 2,000
Sundry office expenses 200
Office stationery 900
Rent and taxes (office) 500
Office insurance 500
Legal expenses 400
Depreciation of office building 1,000
Bank charges 50 5,550
Cost of production 1,13,600
Add: Selling and Distribution Overhead
Rent of warehouse 300
Depreciation of delivery vans 200
Bad debts 100
Advertising 300
Sales Department salaries 1,500
Commission on sales 1,500
Upkeep of delivery vans 700 4,600
TOTAL COST 1,18,200

Cost per ton = 1,18,200/14,775 = Rs.8

PROBLEM NO. 2

Solution: STATEMENT OF COST AND PROFIT FOR THE YEAR 2006

PARTICULARS Rs. Rs.

Opening stock of raw materials 25,000
Add: Purchase of raw materials 85,000
Less: Closing stock of raw materials 40,000
Add: Carriage inward 5,000
Raw Material Consumed 75,000
Wages direct 90,000
(a) Prime cost 1,65,000
Add: Works Overhead
Wages indirect 10,000
Rent and rates(factory) 5,000
Indirect consumption of materials 500
Depreciation on plant & machinery 1,500
Other factory expenses 5,700
Manager’s remuneration 4,000 26,700
(b) Factory cost 1,91,700
 Add: Administration Overhead
Rents and rates(office) 500
Depreciation on office furniture 100
Salary office 2,500
Other office expenses 900
Managerial remuneration 2,000 6,000
(c ) Cost of production 1,97,700
Add: Selling and Distribution Overhead
Bad debts 1,000
Advertisement expenses 2,000
Travelling expenses of salesmen 1,100
Carriage and Freight outward 1,000
Manager’s remuneration 6,000
Salary of Salesmen 2,000 13,100
(d) Cost of sales 2,10,800
(e) Profit 39,200
SALES 2,50,000

Note: (i) Advance payment of income tax is excluded from cost accounts being item of
apportionment of profit.

(ii) Discount - Trade and cash - both are excluded from cost accounts. Trade discount is
deducted from sales price and entries are made for net price in the cost books. Cash discount
being financial item is excluded from cost accounts.
PROBLEM NO. 3

Solution: STATEMENT OF COST AND PROFIT FOR THE MONTH OF SEPTEMBER, 2006

PARTICULARS Rs. Rs.

Raw materials consumed:
Opening stock of raw materials 1,00,000
Add: Purchase of raw materials 88,000
Less: Closing stock of raw materials 1,23,500 64,500
Direct wages 70,000
Prime cost 1,34,500
Add: Works Overhead
Works expenses 39,500
Add: Opening work in progress 31,000
Less: Closing work in progress 34,500
Gross factory cost 1,70,500
Less: Sale of factory scrap 2,000
Factory cost 1,68,500
Add: Office Overhead
Administration expenses 13,000
Cost of production 1,81,500
Add: Opening stock of finished goods 71,500
Less: Closing stock of finished goods 42,000
Cost of goods sold 2,11,000
Add: Selling and Distribution Overhead
Selling and distribution expenses 15,000
Cost of sales 2,26,000
Profit 58,000
SALES 2,84,000
PROBLEM NO. 4

Solution: STATEMENT OF COST AND PROFIT FOR THE YEAR ENDED 31ST MARCH, 2007

PARTICULARS Rs. Rs.

Opening stock of materials 3,000

Add: Purchase of materials for the year 1,10,000

Less: Closing stock of materials 4,000

Raw Materials Consumed 1,09,000

Direct labour 65,000

1,74,000
Prime cost

Add: Works Overhead

Factory overheads (60% of labour) 39,000

Add: Opening work in progress 4,000

Less: Closing work in progress 6,000

2,11,000
Works cost
Add: Office Overhead

Administration expenses (5% of sales) 13,750

2,24,750
Cost of production

Add: Opening stock of finished goods 7,000

Less: Closing stock of finished goods 8,000

2,23,750
Cost of goods sold

Add: Selling & Distribution Overhead

Selling expenses (10% of sales) 27,500

Cost of sales 2,51,250

Profit 23,750

SALES 2,75,000
 PROBLEM NO. 5

Solution: STATEMENT OF COST AND PROFIT FOR THE YEAR ENDED 31STDECEMBER, 2015

PARTICULARS Rs. Rs.

Opening stock of raw materials 40,000
Add: Purchase of raw materials 4,75,000
Less: Closing stock of raw materials 50,000
Add: Carriage inward 12,500
Raw Material Consumed 4,77,500
Wages direct 1,75,000
Prime cost 6,52,500
Add: Works Overhead
Work managers salary 30000
Factory employee’s salaries 60000
Factory rent, taxes and insurance 7250
Power expenses 9500
Other production expenses 43000
Add: Opening work in progress 15000
Less: Closing work in progress 10000
Works cost 8,07,250
Add: Office Overhead
General expenses 32,500
Cost of production 8,39,750
Add: Opening stock of finished goods 6,000
Less: Closing stock of finished goods 15,000
Cost of goods sold 8,30,750
Add: Selling & Distribution Overhead
Selling expenses 9,250
Cost of sales 8,40,000
Profit 20,000
SALES 8,60,000
PROBLEM NO. 6

Solution: STATEMENT OF COST FOR THE MONTH OF APRIL, 2007

PARTICULARS TOTAL(Rs.) PER UNIT(Rs.)

Raw Materials Consumed 15,000
Add: Direct wages 9,000
Prime cost 24,000
Factory expenses (for 900 machine hrs @
4,500
Rs. 5/hr)
Works cost 28,500
Administration overheads (20% of works
5,700
cost)
Cost of production (Units produced = 2.00(34,200/17,100)
34,200
17,100)
Less: Closing stock of finished goods
2,000
(17,100-16,000)*2
Cost of goods sold (Units sold = 16,000) 32,000
Selling overheads @ 50 paise/unit for
8,000
16,000 units
Cost of sales 40,000

Profit 24,000

Sales (16,000 units @ Rs. 4/unit) 64,000

Profit per unit sold = 24,000/16000 = Rs.1.50

PROBLEM NO. 7
Prepare the cost sheet to show the total cost of production and cost per unit of
goods manufactured by a company for the month of July 2015. Also find out the
cost of sales and profit.
Stock of raw materials 3000 Office rent 500
1.7.2015
Raw materials purchased 28000 General expenses 400

Stock of raw materials 4500 Discount on sales 300

31.7.2015
Manufacturing wages 7000 Advertisement expenses to 600
be charged fully

Depreciation on plant 1500 Income tax paid 2000

Factory rent and rates 3000 Loss on sale of part of a 300

plant
Sales 50000

The number of units produced during July, 2015 was 3000.The stock of finished goods
was 200 and 400 units on 1.7.2015 and 31.7.2015 respectively. The total cost of units on
hand on 1.7.2015 was Rs. 2800. All these had been sold during the month.

SOLUTION: STATEMENT OF COST AND PROFIT FOR THE

MONTH OF JULY, 2015

PARTICULARS UNITS TOTAL(Rs.)

Opening stock of raw materials 3,000

Add: Purchase of materials 28,000
Less: Closing stock of raw materials 4,500
Raw materials consumed 26,500
Manufacturing wages 7,000

Prime cost 33,500

 Add: Factory overheads

Depreciation on plant 1,500

Factory rent and rates 3,000

Works cost 38,000

Add: Administration overheads

Office rent 500
General expenses 400

Cost of production 3000 38,900

Add: Opening stock of finished goods 200 2,800
Less: Closing stock of finished goods 400
5,187
(38900/3000)*(400)
Cost of goods sold 2800 36,513
Add: Selling and Distribution
overheads
Advertising expenses 600

Cost of sales 37,133

Profit 12,887

Sales 50,000

Cost of production per unit = 38,900/3000 = Rs.12.97

Notes: Income tax, loss on sale of a part of plant and discount on sales are excluded
from cost accounts.
PROBLEM NO. 8

Solution: STATEMENT OF COST AND PROFIT

PARTICULARS ORIENT(Rs.) SUJON(Rs.)

Materials 27,300 1,08,680
Labour 15,600 62,920
Prime cost 42,900 1,71,600
Works overheads (80% of labour) 12,480 50,336
Works cost 55,380 2,21,936
Office overheads (15% of works cost) 8,307 33,290.40
Total cost (i) 63,687 2,55,226.40
No of units produced (ii) 78 286
Cost per unit (i) / (ii) 816.50 892.40
Profit per unit 183.50 107.60
Selling price per unit 1,000 1,000
PROBLEM NO. 9

Solution: STATEMENT OF COST AND PROFIT FOR THE YEAR ENDED 2006

PARTICULARS Rs. Rs.

Raw material consumed + 10% 11,00,000
Import of raw materials 1,00,000
Direct labour 10,00,000
Prime Cost 22,00,000
Add: Factory Overheads
Indirect labour 2,00,000
Storage of raw materials and spares 50,000
Fuel 1,50,000
Tools consumed 20,000
Depreciation on plant 1,00,000
Excise duty 2,00,000
Salaries of work personnel 1,00,000
Works cost 30,20,000
Add: Administration Overheads
Administration office expenses 2,00,000
Salary of managing director 60,000
Salary of joint managing director 40,000
Fees of directors 20,000
Cost of production 33,40,000
Add: Selling and Distribution Overheads
Expenses on advertising 1,60,000
Selling expenses 1,80,000
Sales depots 1,20,000
Packaging and distribution 1,20,000
Cost of sales 39,20,000
Profit (20% on sales or ¼ of cost) 9,80,000 9,80,000
Sales 49,00,000
Selling price before subsidy per unit
245
(49,00,000/20,000)
Less: Subsidy 100
Quotation 145
 PROBLEM NO. 10
The Government of India has instituted the dual pricing system in the industry in which your
organization operates. You are the head of the costing division of raja textiles Co. Ltd. Your
company produces a standard type of cloth, 50% of which is procured by the government at a
price of Rs.4/metre. You are required by the managing director of your company to suggest a
suitable price for the cloth to be sold in the open market. Production during 2015-16 has been
20,00,000 metres of cloth. Relevant information is given below:

Expenditure head Amount (in Rs.) Expenditure head Amount (in Rs.)
Cotton consumed 10,00,000 Expenses on sales depots 4,00,000
Depreciation of office
Direct labour in factory 10,00,000 1,00,000
machines
Carriage inward 50,000 Misc. Office expenditure 1,00,000
Purchase of computer for
Indirect labour in factory 4,00,000 2,00,000
office
Misc. Purchase of
Salary of works director
2,50,000 furniture and machine for 5,00,000
and other staff in factory
office
Water, power, local taxes 5,00,000 Dividends paid 12,00,000
Dyeing, bleaching etc. 10,00,000 Directors’ fees 2,00,000
Depreciation (factory) 2,00,000 Advertising and Publicity 10,00,000
Excise and other taxes on
30,00,000 Commission paid on sales 10,00,000
production
Commission paid to
Misc. expenses (factory) 1,00,000 1,00,000
foreign buyers
Office salaries 10,00,000 Packaging and forwarding 2,00,000
Salary of managing director 1,00,000

Following further information is made available: (i) The company expects a fair return of 20% on
its paid up capital which is Rs.1,00,00,000. (ii) Marketing expenses outstanding are Rs.1,00,000.
Suggest the open market price after preparing a cost analysis sheet in columnar form.
 SOLUTION: STATEMENT OF COST AND PROFIT FOR THE YEAR 2015-16

PARTICULARS Rs. Rs.

Cotton consumed 10,00,000

Direct labour in factory 10,00,000

Prime Cost 20,00,000

Add: Factory Overheads

Carriage inward 50,000

Indirect labour in factory 4,00,000

Salary of works director and other staff in factory 2,50,000

Water, power, local taxes 5,00,000

Dyeing, bleaching etc. 10,00,000

Depreciation (factory) 2,00,000

Excise and other taxes on production 30,00,000

Misc. expenses (factory) 1,00,000

Works cost 75,00,000

Add: Administration Overheads

Office salaries 10,00,000

Salary of managing director 1,00,000

Depreciation of office machines 1,00,000

Misc. office expenditure 1,00,000

Directors’ fees 2,00,000

Cost of production 90,00,000

Add: Selling and Distribution Overheads

Commission paid on sales 10,00,000

Commission to foreign buyers 1,00,000

Packaging and forwarding 2,00,000

Expenses on sales depots 4,00,000

Advertising and Publicity 10,00,000

Marketing expenses outstanding 1,00,000

Cost of sales 1,18,00,000

Add: Fair return on capital 20,00,000

Total Sales 1,38,00,000

Less: Sales to Govt. 10,00,000 meters @ Rs.4/ 40,00,000

Sales in open market 98,00,000

Sale Price in open market = Rs.98,00,000/10,00,000 = Rs. 9.80/meter

TOTAL SALES =

Rs. 1,38,00,000

(20,00,000 meters)

Sales to Govt. (50%) Sales in open market (50%)

Rs. 40,00,000 (10,00,000 Rs. 98,00,000 (10,00,000

meters @ Rs. 4/meter) meters @ Rs. 9.80/meter)
PROBLEM NO. 11

SOLUTION: STATEMENT OF COST AND PROFIT FOR THE YEAR

ENDED 31st DECEMBER 2006

PARTICULARS UNITS Rs. Rs.

Opening stock of raw materials 11,620

Add: Purchase of raw materials 88,610
Add: Freight on raw materials purchased 5,570
Less: Closing stock of raw materials 9,640
Raw materials consumed 96,160
Manufacturing wages 32,640
Prime cost 1,28,800
Add: Factory overheads
Indirect labour 12,160
Indirect materials 21,390
Other factory expenses 31,730
Gross factory cost 1,94,080
Add: Opening Work in progress 5,740
Less: Closing Work in progress 7,820
Net factory cost 16,000 1,92,000
 Add: Administration overheads -
Cost of production 1,92,000
Add: Opening stock of finished goods 500 6,000
Less: Closing stock of finished goods 1,500 18,000
Cost of goods sold 15,000 1,80,000
Profit 1,80,000
Sales 3,60,000

Cost of production per unit = 1,92,000/16,000 = Rs.12

Working Note:

Calculation of Raw Material Purchased

PARTICULARS Rs. Rs.

Total manufacturing cost incurred 1,94,080
Less: Factory expenses
Indirect material 21,390
Indirect labour 12,160
Factory expenses 31,730 65,280
Prime cost 1,28,800
Less: Direct labour 32,640
Less: Freight on raw material purchased 5,570
Less: Opening stock of raw materials 11,620
Add: Closing stock of raw materials 9,640
Raw material purchased 88,610
PROBLEM NO. 12
The books of Adarsh Manufacturing Company presents the following data for the month of
April, 2001. Direct Labour Cost Rs. 17,500 being 175% of works overhead and cost of goods sold
excluding administration expenses Rs. 56,000. Inventory accounts showed the following
opening and closing balances:

April 1 April 30

Raw materials 8,000 10,600

Work-in-progress 10,500 14,500
Finished goods 17,600 19,000
Other data:
Selling expenses 3,500
General and administration expenses 2,500
Sales for the month 75,000
You are required to:

(i) Compute the value of raw materials purchased

(ii) Prepare a cost statement showing the various elements of cost and also the
profit.

SOLUTION: STATEMENT OF COST AND PROFIT FOR THE MONTH

OF APRIL, 2001

PARTICULARS Rs. Rs.

Opening stock of raw materials 8,000

Add: Purchase of materials 36,500

Less: Closing stock of raw materials 10,600

Raw materials consumed 33,900
Direct labour 17,500
Prime cost 51,400
Factory overheads (17,500×100/175) 10,000
Add: Opening stock of work-in-progress 10,500
Less: Closing stock of work-in-progress 14,500
Cost of production 57,400
Add: Opening stock of finished goods 17,600
Less: Closing stock of finished goods 19,000
Cost of goods sold 56,000
General and administration overheads 2,500
Selling expenses 3,500
Cost of sales 62,000
Profit 13,000
Sales 75,000

COMPUTATION OF RAW MATERIAL PURCHASED

PARTICULARS Rs. Rs.

Cost of goods sold 56,000

Add: Closing stock of finished goods 19,000
Less: Opening stock of finished goods 17,600

Costs of production 57,400

Add: Closing stock of work-in-progress 14,500
Less: Opening stock of work-in-progress 10,500
Works cost 61,400
Less: Factory overhead (17,500×100/175) 10,000
Prime Cost 51,400
Direct labour 17,500
Add: Closing stock of raw materials 10,600
Less: Opening stock of raw materials 8,000
Raw materials purchased 36,500
PROBLEM NO. 13

SOLUTION: STATEMENT OF COST AND PROFIT FOR THE YEAR ENDED

31-03-2009

PARTICULARS UNITS TOTAL (Rs.) PER UNIT

Opening stock of raw materials 8,000

Add: Purchase of materials 48,000

Less: Closing stock of raw materials 8,800

Raw materials consumed 47,200 1.844
Direct wages 40,000 1.563

Prime cost 87,200 3.407

Add: Factory overheads 16,800 0.656
Add: Opening stock of work-in-progress 1,920 0.075
Less: Closing stock of work-in-progress 6,400 0.250

Works cost 99,520 3.888

Add: Office and administration overheads 3,200 0.125
 Cost of production 25,600 1,02,720 4.013
Add: Opening stock of finished goods 1,600 6,400 -
Less: Closing stock of finished goods
3,200 12,840 -
(1,02,720/25,600)*(3,200)
Cost of goods sold 24,000 96,280 4.012
Add: Selling and Distribution Overheads
9,600 0.400
(24,000)*(0.40)
Cost of sales 24,000 1,05,880 4.412

Profit 14,120 0.588

Sales 24,000 1,20,000 5.000

Note: “On cost” is an alternative term for “overhead”.

PROBLEM NO. 14

SOLUTION: STATEMENT OF COST AND PROFIT FOR THE YEAR ENDED

31-12-2006

PARTICULARS UNITS TOTAL (Rs.)

Opening stock of raw materials 20,000

Add: Purchase of materials 1,20,000

Add: Carriage on purchases 1,440

Less: Closing stock of raw materials 22,240
(i) Raw materials purchased 1,19,200
Direct wages 1,00,000
Prime cost 2,19,200
Works Overheads 48,000
Add: Opening stock of work-in-progress 4,800
Less: Closing stock of work-in-progress 16,000
Works cost 2,56,000
Add: Administration Overheads -
(ii) Cost of production(output) 16,000 2,56,000
Add: Opening stock of finished goods 1,000 16,000
Less: Closing stock of finished goods 2,000 32,000
Cost of goods sold 15,000 2,40,000
Add: Selling and Distribution Overheads
15,000
(15,000 tons* Re. 1/ton)
(iii) Cost of sales 2,55,000
(iv) Profit 45,000
Sales 3,00,000
(v) Net profit per ton = 45000/15000 = Rs. 3
PROBLEM NO. 15
The cost of manufacturing 5,000 units of a commodity comprises:
 Materials Rs. 20,000; Wages Rs. 25,000; Chargeable expenses Rs. 400; Fixed factory
overheads Rs. 16,000; Variable factory overheads Rs. 4,000
For manufacturing every 1,000 extra units of the commodity, the cost of production increases as
follows:
 Materials : Proportionately
 Wages : 10% less than proportionately
 Chargeable expenses : No extra cost
 Fixed factory overheads : Rs. 200 extra
 Variable factory overheads : 25% less than proportionately
Calculate the estimated cost of producing 8,000 units of the commodity and show by how much
it would differ if a flat rate of factory overheads based on wages were charged.

SOLUTION: STATEMENT OF COST

PARTICULARS Addn. 3000 units Total 8000 units

5000 units (Rs.)
(Rs.) (Rs.)
(1)
(2) (1)+(2)
Materials
20,000 12,000 32,000
For 3,000 = 20,000 * 3,000/5,000
Wages
25,000 13,500 38,500
For 3,000 = 25,000 * 3,000/5,000 * 90/100
Chargeable expenses 400 0 400
Prime cost 45,400 25,500 70,900
Add: Factory overheads
Fixed
16,000 600 16,600
For 3,000 = (200*3) = 600
Variable
4,000 1,800 5,800
For 3,000 = (4000*3000/5000)*(75/100)
TOTAL COST 65,400 27,900 93,300

Factory overhead to wages ratio at 5,000 units level =

(16,000+4,000/25,000)*100 = 80%
PROBLEM NO. 16
The following is the manufacturing and Profit and Loss Account of Raj Manufacturing Co. for
the year ended 31.3.93, output 850 units.

Particulars Rs. Particulars Rs.

To Materials 64,000 By Sales 3,20,000
To Wages 96,000
To Works expenses 40,000
To Salaries 48,000
To Office Expenses 8,000
To General Expenses 24,000
To Selling Expenses 16,000
To Net Profit 24,000
Total 3,20,000 Total 3,20,000

For year ending 31.3.94, it is estimated that:

(i) Output and sales will be 1000 units; (ii) Material price will increase by 25%; (iii) Wages cost
will increase by 12.5%; (v) Works expenses will increase in proportion to the combined cost of
materials and wages; (v) Selling expenses per unit will remain constant; (vi) Other expenses
remain constant; (vii) Profit of 12.5% on sales is to be made.

Prepare a statement of cost and profit for the year and estimated costs and profit for the next
year.

SOLUTION: STATEMENT OF COST AND PROFIT FOR THE YEAR ENDED

31-03-1993

PARTICULARS TOTAL (Rs.) PER UNIT

Materials 64,000 75.294

Wages 96,000 112.941
Prime cost 1,60,000 188.235
Add: Works Overheads 40,000 47.058
Works cost 2,00,000 235.294
Add: Administration Overheads
 Salaries 48,000
Office expenses 8,000
General expenses 24,000 80,000 94.117
Cost of production 2,80,000 329.411
Add: Selling and Distribution Overheads 16,000 18.823
Cost of sales 2,96,000 348.235
Profit 24,000 28.235
Sales 3,20,000 376.470

Note: Works expenses to ‘combined cost of materials and wages’ (prime cost)

= (40,000/1,60,000)*(100) = 25%

ESTIMATED COST AND PROFIT FOR 1,000 UNITS DURING 1993-94

PARTICULARS TOTAL (Rs.) PER UNIT

Materials (64,000)*(1000/850)*(125/100) 94,118 94.118

Wages (96,000)*(1000/850)*(112.5/100) 1,27,059 127.059

Prime cost 2,21,177 221.177

Add: Works Overheads (2,21,177) *(25/100) 55,294 55.294

Works cost 2,76,471 276.471

Add: Administration Overheads 80,000 80.000

Cost of production 3,56,471 356.471

Add: Selling and Distribution Overheads 18,823

18.823
(16,000)* (1,000/850)
Cost of sales 3,75,294 375.294

Profit at 12.5% of sales (or) (12.5/87.5) 53,613 53.613

on cost of sales

Sales 42,89,070 428.907