This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.
ScanSolve AI Answer
here is the solution for question 53: Step 1: Calculate the cost per unit of production. The total cost of production is ₹ 10,18,050 for 45,200 units. Cost per unit = Total Cost of ProductionUnits Produced Cost per unit = (₹ 10,18,050)/(45,200 units) Cost per unit ≈ ₹ 22.52323 per unit Step 2: Calculate the value of the closing stock of finished goods. The closing stock consists of 7,000 units. Value of Closing Stock = Cost per unit × Units in Closing Stock Value of Closing Stock = ₹ 22.52323 × 7,000 units Value of Closing Stock ≈ ₹ 1,57,662.61 Step 3: Calculate the Cost of Goods Sold (COGS). There is no opening stock of finished goods. COGS = Opening Stock + Cost of Production - Closing Stock COGS = ₹ 0 + ₹ 10,18,050 - ₹ 1,57,662.61 COGS ≈ ₹ 8,60,387.39 Step 4: Calculate the number of units sold. Units Sold = Units Produced - Units in Closing Stock Units Sold = 45,200 units - 7,000 units Units Sold = 38,200 units Step 5: Calculate the total selling and distribution expenses. Selling and distribution expenses are ₹ 0.40 per unit sold. Selling & Distribution Expenses = Units Sold × Expense per unit Selling & Distribution Expenses = 38,200 units × ₹ 0.40 per unit Selling & Distribution Expenses = ₹ 15,280 Step 6: Calculate the Total Cost of Sales. Total Cost of Sales = COGS + Selling & Distribution Expenses Total Cost of Sales = ₹ 8,60,387.39 + ₹ 15,280 Total Cost of Sales ≈ ₹ 8,75,667.39 Step 7: Determine the Sales value. Since no profit margin is given, we assume Sales are equal to the Total Cost of Sales. Sales = Total Cost of Sales Sales ≈ ₹ 8,75,667.39 Comparing this to the given options, option (c) is the closest value. The final answer is (c) ₹ 8,75,667. What's next? Send 'em.