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A company produces a single product in three sizes, A, B and C.

by | Sep 9, 2023 | accounting

A company produces a single product in three sizes, A, B and C. Prepare a statement showing the selling and distribution expenses apportioned over three sizes on the basis indicated and express the total appropriated to each size as,

I] Cost per unit sold II] A percentage of sales turnover and III] Cost per cubic meter of product sold.

The expenses and basis of apportionment are as follows,

Expenses

Amount Rs.

Basis of Apportionment

Sales

10,000

Direct charge

Sales commission

6,000

Sales turnover

Sales office expenses

2,096

Number of orders

Advertising-specific

22,000

Direct charge

Advertising- general

5,000

Sales turnover

Packing

3,000

Size of product

Delivery expenses

4,000

Size of product

Warehouse expenses

1,000

Size of product

Credit collection expenses

1,296

Number of orders

Total

54,392

Data relating to the three sizes:

Particulars

Total

Size A

Size B

Size C

Number of salesmen, all paid same salary

10

4

5

1

Number of orders

1,600

700

800

100

% of specific advertising

100

30

40

30

Number of units sold

8,240

3,440

3,200

1,600

Sales turnover

Rs. 2,00,000

Rs. 58,000

Rs. 80,000

Rs. 62,000

Capacity in cubic m. per unit

5

8

17

  

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