Prepare a cost sheet for 1986 from the following details showing the total cost and cost per unit. The number of units produced is 2,000:

The closing stock of finished goods is 120 units. Profit is 10% on sales. During 1987, it was decided to increase the production to 2,400 units. It was anticipated that

(a) Material prices would increase by 10%.

(b) Wages would reduce by 20%.

(c) Other expenses would remain constant per unit.

(d) Expected profit would become 20% of sales.
Ascertain the selling price to be fixed per unit.

Transcribed Image Text:

Opening stock of raw materials Purchases Rs 10,000 1,80,000 Direct wages 56,000 Indirect wages 48,000 Closing stock of raw materials 12,000 WIP on 1 January 1986 5,000 WIP on 31 December 1986 6,000 Factory overheads 26,000 Office overheads 45,000 Selling overheads 16,000 Opening stock of finished goods (100 units) 20,000