Chemical A: 6000kgs @ Rs. 4.20 per kg Rs 25,200 Chemical B: 10000kgs @ Rs. 3.80
ID: 2433772 • Letter: C
Question
Chemical A: 6000kgs @ Rs. 4.20 per kg Rs 25,200
Chemical B: 10000kgs @ Rs. 3.80 per kg 38,000
Chemical C: 4000kgs @ Rs. 4.75 per kg 19,000
VAT 2,055
Railway Freight 1,000
Total Cost 85,255
A shortage of 100 kgs in chemical A, of 140 Kgs in chemicalB and Of 50 kgs in chemical C was noticed due to breakages. At Mumbai, themanufacture paid octroi duty @ 0.20 kg. He also paid hamali, Rs 20 for thechemical a, Rs 58.12 for chemical B and Rs 35.75 for chemical C. Calculate thestock rate that you would suggest for pricing issue of chemicals assuming aprovision of 4 % towards further deterioration and also show the quantity (kgs)of chemicals available for issue.
Activity Costdriver Capacity Cost
Power Kilowatthours 50000 hrs Kilowatt Rs 200000
Quality Inspection Numbersof inspection 10000 inspection Rs 300000
The Company makes three products, A, B and C.For the yearended March 31, 2004,the following consumption of cost drivers was reported:
Product Kilowatt-hours Quality Inspection
A 20000 7000
B 40000 5000
C
Explanation / Answer
x.Xculate the stock rate that you would suggest for pricing issue of chemicals assuming a provision
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