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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?
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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.
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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?
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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?.
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