Calculate Cost of Production from information given below Direct Material consumed nb...........

Costing - Phase (I & II) Overview of Cost and Management Accounting

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Calculate Cost of Production from information given below:

Direct Material consumed: 20,000/-

Direct wages: 10,000/-

Carriage Inwards: 5,000/-

Factory overheads: @ 5/- per unit

Office overheads: @2/- per unit

Selling and Distribution overheads @ 0.50/- per unit

Number of units produced= 10,000

Number of units sold =8,000

Rs. 85,000/-

Rs. 55,000/-

Rs. 1,05,000/-

Rs. 1,09,000/-

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Explanation:

Cost of Production (COP) is calculated as: Prime cost (+) Factory overheads (+) administrative overheads or we can say, it is Woks cost (+) administrative overheads. In given problem cost of production = 20,000/-+ 10,000/- + 5000/- + 50,000/- + 20,000/-= 1,05,000/-