Question

From the following informations of a factory, prepare a cost sheet showing profit per unit:
Weight of finished product
1,710 kg
Labour charges
₹3,680
Sales
₹20,416
No, of units of finished products 1914
Other informations :
Factory overhead 40% of wages
Office overhead 20% of factory cost
Cost of Raw materials per kg ₹ 5
Wastage in manufacturing process 5% of material weight,
Sale of wastage at 10% of material cost
​

Answer 1

Step-by-step explanation:

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Answer 2

Given : Information of cost and sell of a unit

To Find :  Profit per unit

Solution:

Weight of finished product = 1710 kg

Wastage in manufacturing process 5% of material weight

Hence Material Required = 1710/(1 - 5/100) = 1800 kg

Wastage =1800 - 1710 =  90 kg

Cost of Raw materials per kg ₹ 5  = 1800 x 5 = Rs 9000

Sale of wastage = (90 x (10/100)5) = 45 Rs

Net Material cost per unit = 9000 - 45  = 8955 Rs

Labour charges   ₹3,680

Factory overhead  = (40/100)3680 = 1,472

Factory cost = 3680 + 1472 = 5,152

Office overhead 20%  = (20/100)5152 = 1,030.4

Total Factory Cost = 5,152 +  1,030.4 = 6,182.4

Total Cost per unit = 8955  +  6,182.4 = 15137.4

Sales  ₹20,416

Profit = 5,278.6

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