The following data are related to the manufacture of a standard product during the month of January 2018. Raw materials consumed Tk. 250000. Direct wages Tk.200000. Factory overhead was Tk.150000. Administrative overhead was Tk 35000. Selling overheads were Tk. 25000. Profit 20% on the total cost of goods sold. During the month the company produced and sold 5000 units. The company plans to sell 6000 units next month. Material prices and wages rate and are expected to increase by 10% and 15% respectively. 40% of factory overhead is variable. Other costs will remain unchanged. Profit 25% on the total cost of goods sold. Required;

1. Prepare a statement of cost in respect of the above data and show: (a) Prime cost (b) works cost. (c) Total cost and (d) Sales per unit.

2. Calculate CM Ratio

Answer rating: 100% (QA)

STATEMENT OF COST PARTICULARS AMOUNT IN TK Direct Materials WN16000 units 55 per unit 330000 Direct ... View the full answer