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Mathematics, 07.12.2021 14:20 Sanchezj104
The details of the production cost of a manufacturing company for the previous month ate as under: Direct materials Rs. 500.000 Direct labour. Rs. 100.000 Office overheads The company wants to determine the total cost and selling price for the coming month for the purpose, the company decided to allocate the overhead as follows: Works overhead ... on the basis of direct labour cost Office overhead on the basis of factory cost. Yield 25% on the selling price. The costs estimated for the coming month are: Direct material ...Rs. 600.000 Direct labour ...Rs. 300.000 Required: Cost statement for the coming month by showing (a) Prime cost (b) Factory cost. (c) Cost of production. (d) Profit (e) Sales amount Ans: (a) Rs. 900.000 (1) Rs. 1.020.000 (c) Rs. 1.122.000 (d) Rs. 374.000 (c) RS. 1.796.00
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