Following information relates to the manufacture of a component in a cost centre:
|
Cost of materials |
10 paise per component |
|
Operator’s wages |
80 paise an hour |
|
Machine hour rate |
Rs. 2 |
|
Set-up time of the machine |
2 hrs 30 minutes |
|
Manufacturing time |
10 minutes per component |
You are required to prepare cost sheets showing both production and set-up costs–total and per unit when a batch consists of 10, 100 and 1,000 components.
|
Purchase of raw materials in June |
Rs. 22,000 |
|
Conversion costs (including labour) in June |
Rs. 20,000 |
|
Units completed in June |
2,000 |
|
Units sold in June |
1,600 |
|
Standard cost per unit of output |
|
|
Materials Rs. 20 |
|
|
Conversion cost Rs. 10 |
|
|
Rs. 30 |
There are no direct material variances in June. It is also found that there are no opening stocks of raw materials, work-in-progress and finished goods.