The particulars relating to 1,200 kgs. of a certain raw material purchased by a company during...

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The particulars relating to 1,200 kgs. of a certain raw material purchased by a company during June, were as follows:- Lot prices quoted by supplier and accepted by the Company for placing the purchase order : Lot upto 1,000 kgs. @ 22 per kg. Between 1,000 - 1,500 kgs, @*20 per kg. Between 1500-2000 kgs. @ 18 per kg. Trade discount - 20%. Additional charge for containers @ 10 per drum of 25 kgs. Credit allowed on return of containers, @18 per drum. Sales tax at 10% on raw material and 5% on drums. Total fright paid by the purchaser *240/- Insurance at 2.5% (on net invoice value) paid by the purchaser. Stores overhead applied at 5% on total purchase cost of material. The entire quantity was received and issued to production. The containers are returned in due course. Draw up a suitable statement to show :- (a) Total cost of material purchased and (b) Unit cost of material issued to production. The particulars relating to 1,200 kgs. of a certain raw material purchased by a company during June, were as follows:- Lot prices quoted by supplier and accepted by the Company for placing the purchase order : Lot upto 1,000 kgs. @ 22 per kg. Between 1,000 - 1,500 kgs, @*20 per kg. Between 1500-2000 kgs. @ 18 per kg. Trade discount - 20%. Additional charge for containers @ 10 per drum of 25 kgs. Credit allowed on return of containers, @18 per drum. Sales tax at 10% on raw material and 5% on drums. Total fright paid by the purchaser *240/- Insurance at 2.5% (on net invoice value) paid by the purchaser. Stores overhead applied at 5% on total purchase cost of material. The entire quantity was received and issued to production. The containers are returned in due course. Draw up a suitable statement to show :- (a) Total cost of material purchased and (b) Unit cost of material issued to production.

Answer rating: 100% (QA)

SOLUTION a Calculation of Total Cost of Material Purchased Quantity purchased 1200 kgs Lot price for ... View the full answer