A manufacturer in Surat purchased three chemicals A, B and C from Mumbai. The invoice gave the

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A manufacturer in Surat purchased three chemicals A, B and C from Mumbai. The invoice gave the following information:

A shortage of 200 kg in Chemical A, of 280 kg in Chemical B and of 100 kg in Chemical C was noticed due to breakages. At Surat, the manufacturer paid octroi duty @ 0.10 per kg. He also paid cartage Rs. 20 for Chemical A, Rs. 63.12 for Chemical B and Rs. 31.80 for Chemical C. Calculate the stock rate that you would suggest for issue price of chemicals assuming a provision of 5 per cent towards further deterioration.

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Cost Accounting

ISBN: 9780070221628

4th Edition

Authors: Jawahar Lal, Seema Srivastava

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