Question:
The following data relate to the manufacture of a standard product during the month of March 2010:
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Raw materials:
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Opening stock
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30,000
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Purchases
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70,000
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Closing stock
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20,000
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Wages
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1,20,000
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Works on cost, 50% of wages; office on cost, 20% on works cost; selling on cost, 10% of works cost; profit, 20% on sales; and number of units produced, 10,000. Prepare a statement showing the total cost and profit.