A manufacturing company is in the process of preparing its cost sheet for the financial year. The management wants to analyze the efficiency of…

A manufacturing company is in the process of preparing its cost sheet for the financial year. The management wants to analyze the efficiency of production operations and requires detailed computation of key cost components such as material consumed, prime cost, cost of production, etc. During the year, the company incurred various expenditures related to raw materials, labour, factory operations, and administrative activities. It also maintained records of inventory levels and work-in-process to ensure accurate cost determination. The following information has been gathered from the company's records: Particulars Amount (₹) (i) Repair & maintenance paid for plant & machinery 9,80,500 (ii) Insurance premium paid for inventories 26,000 (iii) Insurance premium paid for plant & machinery 96,000 (iv) Raw materials purchased 64,00,000 (v) Opening stock of raw materials 2,88,000 (vi) Closing stock of raw materials 4,46,000 (vii) Wages paid 23,20,000 (viii) Value of opening Work-in-process 4,06,000 (ix) Value of closing Work-in-process 6,02,100 (x) Quality control cost for the products in manufacturing process 86,000 (xi) Research & development cost for improvement in production process 92,600 (xii) Administrative cost for: Factory & production 9,00,000 Others 11,60,000 (xiii) Amount realised by selling scrap generated during the manufacturing process 9,200 (xiv) Packing cost necessary to preserve the goods for further processing 10,200 (xv) Salary paid to Director (Technical) 8,90,000 (xvi) Television programme sponsorship cost 5,00,000 As a production manager you are required to answer the following questions (MCQs 6 to 10):