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Find out the Missing figure: Prime cost ₹ 5,00,000 ; Factory overhead 50% of prime cost ; Administrative overhead ₹ 1,00,000 ; of production = ?
Accounting
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7 stepshere is the solution for question 53:
Calculate the cost per unit of production.
The total cost of production is ₹ 10,18,050 for 45,200 units.
Calculate the value of the closing stock of finished goods.
The closing stock consists of 7,000 units.
Calculate the Cost of Goods Sold (COGS).
There is no opening stock of finished goods.
Calculate the number of units sold.
Calculate the total selling and distribution expenses.
Selling and distribution expenses are ₹ 0.40 per unit sold.
\text{Selling & Distribution Expenses} = \text{Units Sold} \times \text{Expense per unit}\text{Selling & Distribution Expenses} = 38,200 \text{ units} \times ₹ 0.40 \text{ per unit}\text{Selling & Distribution Expenses} = ₹ 15,280Calculate the Total Cost of Sales.
\text{Total Cost of Sales} = \text{COGS} + \text{Selling & Distribution Expenses}Determine the Sales value.
Since no profit margin is given, we assume Sales are equal to the Total Cost of Sales.
Comparing this to the given options, option (c) is the closest value.
The final answer is .
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