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Question No.1 Zenith products Limited has undertaken a contract for manufacturing 4000 units of a Product PZ. The following information are available for each unit
Question No.1 Zenith products Limited has undertaken a contract for manufacturing 4000 units of a Product PZ. The following information are available for each unit of the Products PZ for the month of September, 2021: Costs and Sales Information Rs/Unit Material Consumption 12.00 Direct Wages 10.00 Selling Price 35.00 The overhead charges are as under: Nature of Overhead Total Cost (Rs.) Fixed Administrative Cost 6,000 Variable Production Cost 3,600 Semi-variable Expenses of which 60% is fixed and balance is variable 2,400 You have been requested to find answers for the following questions i. What would be the profit per article based on the information provided above when production is 4000 units? Please present your answer in the format of a formal Cost Sheet for the month of September 2021. (3 Marks) ii. Assume that in October, 2021 production of PZ has increased to 5,000 units without any change in any of the information related to cost and sales prices as given above including their nature and composition. Please present the Cost Sheet for October, 2021 and find the profit for that month. (2 Marks)
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