Sales : Black Polish 14,40,000 6,00,000 Brown Polish Opening Stock Of Finished Goods Black Polish Brown Polish | Closing Stock Of Finished Goods 48,000 1,60,000 Black Polish Brown Polish 1,08,000 60,000
Sales : Black Polish 14,40,000 6,00,000 Brown Polish Opening Stock Of Finished Goods Black Polish Brown Polish | Closing Stock Of Finished Goods 48,000 1,60,000 Black Polish Brown Polish 1,08,000 60,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Smart Shoe Polish Company manufactures black and brown polish in one standard size of tin
retailing at Rs. 1.08 and Rs. 1.20 respectively. Following is supplied to you :
Particulars
Direct Materials :
Rs.
Polish
7,38,000
Tins
2,88,000
Direct Wages
2,44,800
Production Overheads
3,67,200
Administrative and Selling Overheads
1,22,400
No. of Tins
|Sales :
Black Polish
14,40,000
Brown Polish
Opening Stock Of Finished Goods
Black Polish
Brown Polish
Closing Stock of Finished Goods
Black Polish
Brown Polish
6,00,000
48,000
1,60,000
1,08,000
60,000
The opening stock of black and brown polish was valued at its production cost of paise 80.4
per tin and paise 86.4 per tin respectively. The cost of raw materials for brown polish is 10%
higher than that for black but there is no difference in the cost of tins. Direct wages for brown
are 8% higher than those for black polish and production overheads are considered to vary
with direct wages. Administrative and selling overhead is absorbed at a uniform rate per tin
of polish sold. Prepare a statement to show the cost and profit per tin of polish.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fea15edae-95e8-4029-bf5f-be3844bcbdcc%2F8fb2bc27-49f7-463a-84c2-a69773711805%2F3yvmb4e_processed.png&w=3840&q=75)
Transcribed Image Text:Smart Shoe Polish Company manufactures black and brown polish in one standard size of tin
retailing at Rs. 1.08 and Rs. 1.20 respectively. Following is supplied to you :
Particulars
Direct Materials :
Rs.
Polish
7,38,000
Tins
2,88,000
Direct Wages
2,44,800
Production Overheads
3,67,200
Administrative and Selling Overheads
1,22,400
No. of Tins
|Sales :
Black Polish
14,40,000
Brown Polish
Opening Stock Of Finished Goods
Black Polish
Brown Polish
Closing Stock of Finished Goods
Black Polish
Brown Polish
6,00,000
48,000
1,60,000
1,08,000
60,000
The opening stock of black and brown polish was valued at its production cost of paise 80.4
per tin and paise 86.4 per tin respectively. The cost of raw materials for brown polish is 10%
higher than that for black but there is no difference in the cost of tins. Direct wages for brown
are 8% higher than those for black polish and production overheads are considered to vary
with direct wages. Administrative and selling overhead is absorbed at a uniform rate per tin
of polish sold. Prepare a statement to show the cost and profit per tin of polish.
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