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SSC Financial and Cost Accounting P-1 QUESTION #9619
Question 1
The Cost of Goods Sold Statement of a manufacturing concern shows: Opening Raw Material Rs. 100,000; Purchases Rs. 200,000; Closing Raw Material Rs. 85,000; Direct Labour Rs. 150,000; Factory Overhead Rs. 50,000; Opening WIP Rs. 90,000; Closing WIP Rs. 95,000; Opening Finished Goods Rs. 150,000; Closing Finished Goods Rs. 140,000. What is the Cost of Goods Sold?
  • Rs. 415,000
  • Rs. 420,000✔️
  • Rs. 410,000
  • Rs. 560,000
Correct Answer Explanation
Cost of Material Consumed = 100,000 + 200,000 – 85,000 = Rs. 215,000. Total Factory Cost = 215,000 + 150,000 + 50,000 = Rs. 415,000. Cost of Goods Manufactured = 415,000 + 90,000 – 95,000 = Rs. 410,000. Cost of Goods Sold = 410,000 + 150,000 – 140,000 = Rs. 420,000.