Gce Model Questions Vol1 2020 Financial Accounting Question 30

A manufacturing company produces a single product. For the year ended 31 December the following data are given (all figures in £):\n\n- Opening stock of raw materials: 12,000\n- Purchases of raw materials: 68,000\n- Freight‑in on raw material purchases: 5,000\n- Closing stock of raw materials: 10,000\n- Direct labour cost: 45,000\n- Manufacturing overhead is applied at 150 % of direct labour cost.\n- Actual manufacturing overhead incurred: 70,000\n- Opening work‑in‑progress (WIP): 8,000\n- Closing WIP: 9,500\n- Opening finished‑goods stock: 15,000\n- Closing finished‑goods stock: 13,200\n- Sales revenue: 210,000\n- Selling and distribution expenses: 20,000\n- Administrative expenses: 12,000\n\nCalculate (a) the cost of raw materials used, (b) the total manufacturing cost, (c) the cost of goods manufactured, (d) the cost of goods sold, (e) the gross profit, (f) the amount of overhead absorbed, and (g) whether overhead is under‑absorbed or over‑absorbed and by how much.