Question

Find out in the appropriate cost sheet from the selling rate per ton of special paper manufactured
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-@ 3 per man for 25 days
40 unskilled men-@ 2 per man for 25 days
Direct Expenses :
Special equipments—3,000.
Special dyes R1,000.
Works Overhead :
Variable @ 100%
On direct wages
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--Rs800
There was no work-in-progress at the beginning or at the end of the month.
The scrap value of the special equipment after utilisation in manufacture is nil.​

Answer 1

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Step-by-step explanation:

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