Inventory

xvefgrashat
timer Asked: Nov 27th, 2018

Question Description

1. Alpha Ltd makes one standard article. You have been given following information

raw material:

100 tonof steel:

cost £140 per ton

Present price £130 per ton


Finished goods:

100 finished units:

Cost of materials £150 per unit

Labour cost £150 per unit

Selling price £150 per unit


40 semi-finished units

Cost of materials £50 per unit

Labour cost of date £100 per unit

Selling price £500 per unit (completed)


10 damaged finished units

cost to rectify the damage £200 per unit

Selling price £500 per unit (when rectified)

2. Manufacturing overheads are 100% of labour cost

Selling and distribution expenses are £60 per unit (mainly salespeoples' commision and freight charges)

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