CA Foundation Exam  >  CA Foundation Questions  >  In manufacturing a product 1000 kg of raw mat... Start Learning for Free
In manufacturing a product 1000 kg of raw materials at 8 rupees 8 per kg bare supplied to a process other expenses on this process fair as follows labour cost is equal to rupees 2000 and production expenses equal to rupees 1000 normal loss has been estimated at 10% which could be sold at rupees 10 per kg the actual output in this process w 880 kg?
Most Upvoted Answer
In manufacturing a product 1000 kg of raw materials at 8 rupees 8 per ...
Calculation of Cost of Production


  • Raw material cost = 1000 kg x 8 rupees/kg = 8000 rupees

  • Labour cost = 2000 rupees

  • Production expenses = 1000 rupees

  • Total cost = Raw material cost + Labour cost + Production expenses = 11000 rupees



Calculation of Normal Loss


  • Normal loss = 10% of 1000 kg = 100 kg

  • Value of normal loss = 100 kg x 10 rupees/kg = 1000 rupees



Calculation of Cost per kg of Actual Production


  • Actual output = 880 kg

  • Cost per kg of actual production = Total cost / (1000 kg - Normal loss + Actual output)
    = 11000 rupees / (1000 kg - 100 kg + 880 kg) = 12.22 rupees/kg



Calculation of Sales Revenue from Normal Loss


  • Sales revenue from normal loss = Value of normal loss = 1000 rupees



Calculation of Profit or Loss


  • Total sales revenue = Sales revenue from normal loss + Sales revenue from actual production
    = (1000 rupees + 880 kg x 10 rupees/kg) = 9880 rupees

  • Profit or loss = Total sales revenue - Total cost
    = 9880 rupees - 11000 rupees = -1120 rupees



Conclusion

The cost per kg of actual production is 12.22 rupees/kg, and the total sales revenue is 9880 rupees. However, the total cost of production is 11000 rupees, resulting in a loss of 1120 rupees.
Explore Courses for CA Foundation exam

Similar CA Foundation Doubts

In manufacturing a product 1000 kg of raw materials at 8 rupees 8 per kg bare supplied to a process other expenses on this process fair as follows labour cost is equal to rupees 2000 and production expenses equal to rupees 1000 normal loss has been estimated at 10% which could be sold at rupees 10 per kg the actual output in this process w 880 kg?
Question Description
In manufacturing a product 1000 kg of raw materials at 8 rupees 8 per kg bare supplied to a process other expenses on this process fair as follows labour cost is equal to rupees 2000 and production expenses equal to rupees 1000 normal loss has been estimated at 10% which could be sold at rupees 10 per kg the actual output in this process w 880 kg? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about In manufacturing a product 1000 kg of raw materials at 8 rupees 8 per kg bare supplied to a process other expenses on this process fair as follows labour cost is equal to rupees 2000 and production expenses equal to rupees 1000 normal loss has been estimated at 10% which could be sold at rupees 10 per kg the actual output in this process w 880 kg? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In manufacturing a product 1000 kg of raw materials at 8 rupees 8 per kg bare supplied to a process other expenses on this process fair as follows labour cost is equal to rupees 2000 and production expenses equal to rupees 1000 normal loss has been estimated at 10% which could be sold at rupees 10 per kg the actual output in this process w 880 kg?.
Solutions for In manufacturing a product 1000 kg of raw materials at 8 rupees 8 per kg bare supplied to a process other expenses on this process fair as follows labour cost is equal to rupees 2000 and production expenses equal to rupees 1000 normal loss has been estimated at 10% which could be sold at rupees 10 per kg the actual output in this process w 880 kg? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of In manufacturing a product 1000 kg of raw materials at 8 rupees 8 per kg bare supplied to a process other expenses on this process fair as follows labour cost is equal to rupees 2000 and production expenses equal to rupees 1000 normal loss has been estimated at 10% which could be sold at rupees 10 per kg the actual output in this process w 880 kg? defined & explained in the simplest way possible. Besides giving the explanation of In manufacturing a product 1000 kg of raw materials at 8 rupees 8 per kg bare supplied to a process other expenses on this process fair as follows labour cost is equal to rupees 2000 and production expenses equal to rupees 1000 normal loss has been estimated at 10% which could be sold at rupees 10 per kg the actual output in this process w 880 kg?, a detailed solution for In manufacturing a product 1000 kg of raw materials at 8 rupees 8 per kg bare supplied to a process other expenses on this process fair as follows labour cost is equal to rupees 2000 and production expenses equal to rupees 1000 normal loss has been estimated at 10% which could be sold at rupees 10 per kg the actual output in this process w 880 kg? has been provided alongside types of In manufacturing a product 1000 kg of raw materials at 8 rupees 8 per kg bare supplied to a process other expenses on this process fair as follows labour cost is equal to rupees 2000 and production expenses equal to rupees 1000 normal loss has been estimated at 10% which could be sold at rupees 10 per kg the actual output in this process w 880 kg? theory, EduRev gives you an ample number of questions to practice In manufacturing a product 1000 kg of raw materials at 8 rupees 8 per kg bare supplied to a process other expenses on this process fair as follows labour cost is equal to rupees 2000 and production expenses equal to rupees 1000 normal loss has been estimated at 10% which could be sold at rupees 10 per kg the actual output in this process w 880 kg? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev