2018 March 1 3 5 Problem No.8 Prepare a stores ledger account using weighted average method of pricing the issue of materials. Balance 1,000 units @Rs.70 per unit Purchased 2000 units at Rs.80 per unit Issued 500 units 10 Issued 1000 units 15 Purchased 2000 units at Rs.80 per unit 18 Issued 400 units 20 Received back 25 units out of the issued made on 5th March 22 Issued 1500 units 24 25 30 Issued 1000 units Returned to supplier 30 units out of the purchases made on 15th Purchased 1000 units at Rs.75 per unit march Physical verification on 21st march revealed a shortage of 15 units and 20 units shortage on 30th march. Problem No.9 Mr.A is working by employing 10 skilled workers. He is considering the introduction of some incentive scheme - either Halsey Scheme (with 50% bonus) or Rowan Scheme of wage payment for increasing the labour productivity to cope with the increased demand for the product by 25%. He feels that if the proposed incentive scheme could bring about an average 20% increase over the present earnings of the workers, it could act as sufficient incentive for them to produce more and he has accordingly given this assurance to the workers. As a result of this assurance, the increase in productivity has been observed as revealed by the following figures for the current month; Hourly rate of wages (guaranteed) Rs.2 Average time for producing1 piece by one worker at the previous performance (time allowed) 2 hours No. of working days in the month 25 No. of working hours per day for each worker 8 Actual production during the month 1,250 units Required: a) Calculate effective rate of earnings per hour under Halsey Scheme and Rowan Scheme. b) Calculate the saving to Mr.A in terms of direct labour cost per piece under the above scheme. c) Advise Mr.A about the selection of the scheme to fulfil his assurance.