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Step Distribution Method: Q.12. In an engineering factory, the following particulars have been extracted for the year 31.03.2014. Compute the cost of the Production
Step Distribution Method: Q.12. In an engineering factory, the following particulars have been extracted for the year 31.03.2014. Compute the cost of the Production department using Primary and Secondary allocation through (15 Marks) Area Occupied Pl 1200 P2 P3 S1 S2 800 800 400 Assets Value in Rs. 2,00,000 1,50,000 No of Workers 150 100 1,50,000 150 1,00,000 800 1,00,000 50 50 Light Points 20 10 10 5 5 H.P of Machines 10 20 20 5 5 Direct Wages 20,000 20,000 10,000 10,000 5,000 Direct Materials 30,000 40,000 30,000 10,000 10,000 The expenses incurred were: Rent and Rates Power Insurance Depreciation Canteen Expenses Electricity Indirect Materials Repairs & Maintenance Sundry Expenses The allocation is done on the following basis: 8,000 12,000 14,000 35,000 10,000 7,500 18,000 18,000 13,000 Pl P2 P3 S1 Sl 30% 30% 10% wwww S2 40% 30% 10% 20% S2 30%
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