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  • Assignment 2

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    ayan khan
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    This document provides instructions for students to calculate the per unit cost of commercializing their final year projects. Students are asked to determine the direct material costs, direct labor costs, direct expenses to calculate the prime cost. They then add the factory overhead to the prime cost to get the factory cost. Additional overhead costs are included to determine the cost of production, cost of goods sold, cost of sales, and ultimately the selling price per unit. Students should explain any assumed costs in their calculations.

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    Economics assignment 2

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    This document provides instructions for students to calculate the per unit cost of commercializing their final year projects. Students are asked to determine the direct material costs, direct labor costs, direct expenses to calculate the prime cost. They then add the factory overhead to the prime cost to get the factory cost. Additional overhead costs are included to determine the cost of production, cost of goods sold, cost of sales, and ultimately the selling price per unit. Students should explain any assumed costs in their calculations.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    1 views1 page

    Assignment 2

    Uploaded by

    ayan khan
    This document provides instructions for students to calculate the per unit cost of commercializing their final year projects. Students are asked to determine the direct material costs, direct labor costs, direct expenses to calculate the prime cost. They then add the factory overhead to the prime cost to get the factory cost. Additional overhead costs are included to determine the cost of production, cost of goods sold, cost of sales, and ultimately the selling price per unit. Students should explain any assumed costs in their calculations.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
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    Assignment #2 Due Date: 22 nd March 2019

    CLO - 2 Marks:10

    • Making your FYP’s into a commercial product requires you to identify the
    ultimate selling cost of your product per unit.
    • Calculate the per unit cost of your product with the help of following derivations.
    • (a) Direct material costs + Direct labor costs + Direct expenses = Prime cost
    (b) Prime cost + Factory overhead = Factory cost
    (c) Factory cost + Office and administrative overhead= Costs of production
    (d) Cost of production + Opening finished stock – Closing finished stock= Cost
    of goods sold
    (e) Cost of goods sold + Selling and distribution overhead = Cost of sales
    (f) Cost of sales + Profit = Sales
    (g) Sales/Quantity sold = Selling price per unit
    • In cases where you need to assume certain costs do so with explanation.

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