the closing stock of finished goods is 120 units profit is 10 on sales during 1987 i 555975

Prepare a cost sheet for 1986 from the following details showing the total cost and cost per unit. The number of units produced is 2,000:

Rs

Opening stock of raw materials

10,000

Purchases

1,80,000

Direct wages

56,000

Indirect wages

48,000

Closing stock of raw materials

12,000

WIP on 1 January 1986

5,000

WIP on 31 December 1986

6,000

Factory overheads

26,000

Office overheads

45,000

Selling overheads

16,000

Opening stock of finished goods (100 units)

20,000

The closing stock of finished goods is 120 units. Profit is 10% on sales. During 1987, it was decided to increase the production to 2,400 units. It was anticipated that (a) Material prices would increase by 10%. (b) Wages would reduce by 20%. (c) Other expenses would remain constant per unit. (d) Expected profit would become 20% of sales.Ascertain the selling price to be fixed per unit.

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