Mathematics · Cost Sheet and Batch Costing
'Medi-Pill Pharmaceuticals Ltd.' manufactures a generic fever tablet, 'Para-Strong', in standardized runs (batches) of 50,000 tablets. The company uses Batch Costing. For the batch numbered B-2025/11, the following costs were incurred: Direct Material Cost: 15,000 rupees Direct Labor Cost: 5,000 rupees Specific Batch Testing Cost: 1,000 rupees Machine Setup Cost: 4,000 rupees The company allocates Factory Overheads at 150% of Direct Labor Cost. Determine the Total Works Cost of the batch and the Cost per Tablet.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Total Works Cost: 32,500 rupees; Cost per Tablet: 0.65 rupees✓
- 2Total Works Cost: 31,500 rupees; Cost per Tablet: 0.63 rupees
- 3Total Works Cost: 24,000 rupees; Cost per Tablet: 0.48 rupees
- 4Total Works Cost: 25,000 rupees; Cost per Tablet: 0.50 rupees
Correct answer
Total Works Cost: 32,500 rupees; Cost per Tablet: 0.65 rupees
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