Question
ABC Textiles Ltd. manufactures two types of fabrics: Cotton and Silk. Below is the cost and output data: Particulars Cotton Silk Direct Material 5,00,000 7,00,000
ABC Textiles Ltd. manufactures two types of fabrics: Cotton and Silk. Below is the cost and output data:
Particulars | Cotton | Silk |
Direct Material | ₹5,00,000 | ₹7,00,000 |
Direct Labour | ₹3,00,000 | ₹4,00,000 |
Factory Overheads | ₹2,00,000 | ₹2,50,000 |
Units Produced | 10,000 | 5,000 |
You are required to calculate:
- The cost per unit for each type of fabric.
- The selling price per unit if a profit of 25% on cost is desired.
- The total revenue generated from the sale of both types of fabrics.
- The percentage contribution of each type of fabric to the total revenue.
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Managerial Accounting for Managers
Authors: Eric Noreen, Peter Brewer, Ray Garrison
4th edition
1259578542, 978-1259578540
