The following data relate to the manufacture of a standard product during a four week period ending June 30, 2019: (in ) Rs

Accounting Jan 21, 2021

The following data relate to the manufacture of a standard product during a four week period ending June 30, 2019: (in ) Rs. DM 3000 Wages 7000 Machine hours worked 1000 Machine hour rate 0.50 Office OH @ 20% on work cost Selling OH per unit 0.06 Units produced 20000 Units sold @ Re. 1 per unit 17000 Prepare a cost sheet for total and per unit; and profit total and per unit.

Expert Solution

Solution :

Particulars Amount

Raw Material Consumed 3000

Wages 7000

Machine O/H(1000*0.5) 500

Work Cost 10500

Office O/H(10500*20%) 2100

Selling O/H(20000*0.06) 1200

Total Cost 13800

Cost per unit=13800/20000=0.69

Profit per unit=1-0.69=0.31

Profit=Units sold*Profit per unit

=17000*0.31

=5270

PLEASE UPVOTE IF U FIND THE SOLUTION HELPFUL.

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