The correct answer is: C. Rs. 68,000
The manufacturing cost is the cost of producing a product. It includes the cost of materials, labor, and overhead.
To calculate the manufacturing cost, we can use the following formula:
Manufacturing cost = Opening stock + Net purchases + Direct labor + Direct expenses + Manufacturing overhead – Closing stock
In this case, we have the following information:
- Opening stock = Rs. 10,000
- Net purchases = Rs. 70,000
- Direct labor = Rs. 2,500
- Direct expenses = Rs. 500
- Closing stock = Rs. 15,000
Substituting these values into the formula, we get:
Manufacturing cost = Rs. 10,000 + Rs. 70,000 + Rs. 2,500 + Rs. 500 – Rs. 15,000 = Rs. 68,000
Therefore, the manufacturing cost is Rs. 68,000.
Option A is incorrect because it is the cost of goods sold. The cost of goods sold is the cost of the goods that a company has sold during a period. It is calculated by taking the beginning inventory, adding the net purchases, and subtracting the ending inventory.
Option B is incorrect because it is the cost of goods available for sale. The cost of goods available for sale is the cost of the goods that a company has available to sell during a period. It is calculated by taking the beginning inventory, adding the net purchases, and subtracting the opening stock.
Option D is incorrect because it is the cost of goods manufactured. The cost of goods manufactured is the cost of the goods that a company has manufactured during a period. It is calculated by taking the direct materials, direct labor, and manufacturing overhead, and adding the beginning work in process inventory, and subtracting the ending work in process inventory.