Prepare a cost sheet for 1986 from the following details showing the total cost and cost per unit. The number of units produced is 2,000:
|
Rs |
|
|
Opening stock of raw materials |
10,000 |
|
Purchases |
1,80,000 |
|
Direct wages |
56,000 |
|
Indirect wages |
48,000 |
|
Closing stock of raw materials |
12,000 |
|
WIP on 1 January 1986 |
5,000 |
|
WIP on 31 December 1986 |
6,000 |
|
Factory overheads |
26,000 |
|
Office overheads |
45,000 |
|
Selling overheads |
16,000 |
|
Opening stock of finished goods (100 units) |
20,000 |
The closing stock of finished goods is 120 units. Profit is 10% on sales. During 1987, it was decided to increase the production to 2,400 units. It was anticipated that (a) Material prices would increase by 10%. (b) Wages would reduce by 20%. (c) Other expenses would remain constant per unit. (d) Expected profit would become 20% of sales.Ascertain the selling price to be fixed per unit.