Brown India Limited manufactures office tables. Normal capacity of the factory is 60,000 tables per annum. Following are the cost and inventory details for the year 2005–06.

Required:
Carry out the allocation of fixed production overheads and valuation of the inventory if the actual production during the year were:

Transcribed Image Text:

Raw materials cost per table Variable production overheads per table Fixed production overheads for the year Inventory as at 31st March 2006 * 2,500 * 650 * 1,80,00,000 5,500 tables