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    Question

    Direct Materials = ₹1000, Labour = ₹500, Direct

    Expenses = ₹250, Works Overhead = ₹200, Admin = ₹550, S&D Overhead = ₹300. Find cost of production.
    A ₹2500 Correct Answer Incorrect Answer
    B ₹2700 Correct Answer Incorrect Answer
    C ₹2800 Correct Answer Incorrect Answer
    D ₹2900 Correct Answer Incorrect Answer
    E ₹3000 Correct Answer Incorrect Answer

    Solution

    Prime Cost = 1000+500+250 = ₹1750 Works Cost = 1750 + 200 = ₹1950 Cost of Production = 1950 + 550 = ₹2500

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