The following particulars are obtained from the records of a factory:

10% of the production has been scrapped as bad and a further 20% has been brought up to the specifi cation by increasing the factory overheads to 80% of wages. If the scrapped production fetches only Rs. 940, fi nd the production cost per unit if the fi nished product of the total production (including the quantity scrapped) is 100 units.

Transcribed Image Text:

Materials issued Wages paid Factory overheads Materials returned to stores: Materials transferred to other jobs: Rs. 1,28,000 1,12,000 60% of wages 1,600 800