Question

en Manufacturing company is producing two types of pens- Delux and Popular.

The manufacturing costs for the year ended on 31st March ,2011 were

Direct Material 2,00,000

Direct Wages 1,12,000

Production Overhead 48,000

3,60,000

It is ascertain that :

1. Direct Material in ‘Delux’ Type cost twice is much as that of popular type.

2. Direct wages of Popular type were 60% of those for Deluxe type.

3. Production overhead was 30 paise per pen for both the types.

4. Administration Overhead for each type was 200% of Direct wages.

5. Selling cost was 25 Paise per pen both types.

6. Production during the year was:

Deluxe type – 40,000 pens of which 36,000 were sold. Popular Type- 1,20,000

pens of which 1,00,000 were sold.

7. Selling prices were Rs. 7 per pen of Deluxe type and Rs. 5 per pen of popular

type.

Prepare a statement showing total Cost per pen of each type and the profit

made on each pen​

Answer 1

Answer:

Explanation:

Here is the solution for that question

Answer 2

Concept:

Cost Sheet-

A cost sheet is a statement that shows the various components of a product's total cost as well as previous data for comparison.

Given:

• Direct Material 2,00,000
• Direct Wages 1,12,000
• Production Overhead 48,000
• Pens sold - Delux = 36000, Popular = 100000
• Pens produced- Delux=40000, Popular = 120000
• Selling Price- Delux = 7 per unit, Popular = 5 per unit
• Selling cost = 25 paise per pen

Find:

Total and cost per pen

Solution:

                                                       Cost Sheet

Particulars                             Delux Pens                          Popular Pens

                                           Total        Per unit              Total           Per unit

Direct Material (2:3)       80000          2                   120000            1

Direct Wages   (5:9)        40000          1                      72000           0.6

Prime Cost                     120000         3                   192000            1.6

Production Overhead      12000         0.3                   36000           0.3

Works Cost                     132000         3.3                 228000           1.9

Admin Expense

(200% of DW)                 80000           2                   144000            1.2

Cost of production      212000          5.3                  372000           3.1

Less: Closing Stock

( 4000x5.3 ,                   (21200)            -                           -                   -

20000x 3.1)                          -                  -                      (62000)          -

Cost Of Goods sold      190800         5.3                    310000           3.1

Selling Expenses              9000         0.25                    25000          0.25

Total Cost                      199800         5.55                   335000         3.35

Pofit                                  52200         1.45                   165000          1.65

Sales                               252000       7                          500000         5

Hence, we can conclude that the Cost per unit of Delux and Popular pens is Rs. 5.55 and Rs. 3.35 respectively.

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