Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Payroll Accounting 2021

Authors: Bernard J. Bieg, Judith A. Toland

31st Edition

0357358287, 9780357358283

More Books

Students also viewed these Accounting questions