The cost accounts department of a company has supplied the following data for the supply of 2,000 units of product. Direct materials : 40,000 tons at Rs. 5 per ton. Direct wages: 8,000 labour hours at Rs. 50 per hour Overheads: Variable : Factory Rs. 10 per labour hour Selling Rs. 20 per unit Factory Rs. 1,00,000 Office Rs. 2,00,000 Fixed : Prepare a statement showing the price to be fixed which will fetch a profit of 25% on cost.
The cost accounts department of a company has supplied the following data for the supply of 2,000 units of product. Direct materials : 40,000 tons at Rs. 5 per ton. Direct wages: 8,000 labour hours at Rs. 50 per hour Overheads: Variable : Factory Rs. 10 per labour hour Selling Rs. 20 per unit Factory Rs. 1,00,000 Office Rs. 2,00,000 Fixed : Prepare a statement showing the price to be fixed which will fetch a profit of 25% on cost.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2.21
Cost Sheet. Tenders and Quotations
(D) Cost sheet-With sale price computation
Illustration 9
The cost accounts department of a company has supplied the following data
for the supply of 2,000 units of product.
Direct materials : 40,000 tons at Rs. 5 per ton.
Direct wages:
8,000 labour hours at Rs. 50 per hour
Overheads:
Factory Rs. 10 per labour hour
Selling Rs. 20 per unit
Factory Rs. 1,00,000
Office Rs. 2,00,000
Variable :
Fixed :
Prepare a statement showing the price to be fixed which will fetch a profit of
25% on cost.
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