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cost sheet

Costing

sir in illustration 2 of cost sheet that is the second last video why do we divide the administration overheads by 4000 and not 3600 because we sold only 3600 goods so the overheads should also be divided by 3600 right? to reach at the correct cost per unit

Sonia Mishra

CA Inter

★ 840

11-Apr-20 05:24

445

Answers (2)

Will check and revert.

CA Suraj Lakhotia

Admin

25-Apr-20 09:42

Hi Sonia Mishra, Since nothing is specified, Administrative overheads are generally related to production. It is calculated on the basis of number of units produced. Sincerely, IndigoLearn Team