Portronics is an electrical company manufacturing switches. The manager of the company
provides you the following information relating to 20,000 switches produced during the
year 2019.
Direct Material
Direct Wages
72000
Power
40000
Bad debts
22000
Indirect Wages
4400
19800
Factory supervision
22 200
Drawings office, alares
7.500
Opening stock of finished goods (2.000 units)
40,000
Closing stock of finished goods (3,000 units)
13
Factory Rent
3200
Defective work
2400
22400
Office Salaries
3400
Sales commission
1800
Sale proceeds of Scrap
13500
Repairs and depreciation
Company uses FIFO method of stock valuation. You are required to prepare a cost sheet
for the year 2019 and compute the selling price per unit assuming a margin of 20% on
sales.
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