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 72000 Direct Wages 40000 Power 22000 Bad debts 4400 Indirect Wages 19800 Factory supervision 22,200 Drawings’ office salaries 7,500 Opening stock of finished goods (2,000 units) 40,000 Closing stock of finished goods (3,000 units) ? Factory Rent 3200 Defective work 2400 Office Salaries 22400 Sales commission 3400 Sale proceeds of Scrap 1800 Repairs and depreciation 13500 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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