Answer to Question #30814 in Finance for NEELIMA

Question

The following data are related to the manufacture of a standard product during the month of July 2009.




Raw materials consumed


Rs.15,000


Direct wages


Rs. 9,000




Machine hours worked


900 hours


Machine hours rate


Rs.5


Administrative overheads


20% of works cost


Selling overheads


Re.0.50 per unit


Units produced


17,100


Units Sold


16,000 @ Rs.4 per unit



Prepare a cost sheet from the above to show:

a. The cost per unit

b. The profit per unit sold and profit for the period



Hint: Profit = 24000