One parcel containing two important materials was received by a factory and the invoice pertaining to the same discloses the following information:
|
|
Rs |
Material I 500 kgs. @ Rs.2.00 per kg. |
|
1,000.00 |
Material II 600 kgs. @ Rs.1.60 per kg. |
|
960.00 |
Insurance |
|
39.20 |
Sales Tax |
|
98.00 |
Freight etc. |
|
55.00 |
Due to mishandling in the factory’s store a loss of 10 units of material I and 6 units of material II was noted. What rate would you adopt, for issuing these vital components to the jobs? Also give your changed rate, if a provision of 10% is to be kept for probable risk of obsolescence.