Question

by a Paper Mill for the Government in January 2014 under the following divisions of cost :
a) Prime Cost, (b) Works Cost, (c) Total Cost, (d) Selling Price.
The cost sheet is to be prepared with reference to data given below:
Direct Materials:
Paper pulp—500 ton @ 50 per ton.
Other miscellaneous materials—100 ton @ 30 per ton.
Direct Labour :
80 skilled men-@ 73 per man for 25 days
40 unskilled men-@*2 per man for 25 days
Direct Expenses :
Special equipments3,000.
Special dyes1,000.
Works Overhead:
Variable @ 100%
Fixed @ 60%
Administration overhead
@ 10%
On works cost
Selling and distribution overhead @ 15%
Profit--10% on Total Cost
Finished paper manufactured--400 ton
Credit account of sale of manufacture of waste--Rs.800​

Answer 1

Answer:

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