You are required to prepare a statement showing the total cost per pen for each type of gel pen and…

The Super Fine Pen Co. manufactures two types of gel pens A and B. The manufacturing costs for the year ended 31 December 2009 were

Direct material

3,00,000

Direct wages

1,50,000

Production overheads

50,000

5,00,000

It is ascertained that: Direct materials in ‘A’ costs twice as much as direct material in type “B” Direct wages for type ‘B’ were 50% if those for type ‘A’. Production Overhead was 50 Paise the same per pen of type A & B. Administration Overhead for each type was 150% of direct wages Selling cost was 30 Paise per pen for each type of Gel Pen Production and sales during the period was:

Type A – 50,000 gel pens of which 40,000 were sold

Type B – 1,00,000 gel pens of which 75,000 were sold Selling prices were Rs. 8 for type A and Rs. 5 per gel pen of type B.

You are required to prepare a statement showing the total cost per pen for each type of gel pen and the profit made on each type of pen.

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