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:

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Answer 2

Answer:

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