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919 Qty. Amount C.ft. Cost of timber logs 5,000 1,00,000 Add: Expenses of seasoning: (a) Rent for six months (1) 375 (6) Salaries for six months (42) 1,500 (c) Incidental expenses for six months (2) 450 (d) Overhead for six month (1) 500 (e) Insurance (1% of 1,00,000) 1.000 5,000 1.03,825 Less: Loss in volume (10%) (500) Total cost timber logs seasoned 4,500 1,03,825 Cost per cubic feet 103.825/4500 = 3. 23.07. Illustration 11: The particulars relating to 1200 kg of a certain raw material purchased by a company during June were as follows: (a) Lot price quoted by supplier and accepted by the company for placing the purchase order Lot up to 1000 kg @ 22 per kg Between 1000 - 1500 kg @ 3.20 per kg For supplies to factory Between 1500 - 2000 kg @18 per kg (b) Trade discount 20% (c) Additional charge for containers @10 per drum of 25 kg. (d) Credit allowed on return of containers @3.8 per drum. (@) Sales tax @ 10% on raw material and 5% on drums, (1) Total freight paid by the purchase. 240. (8) Insurance at 2.5% (on net invoice value) paid by the purchaser. (h) Stores overhead applied at 5% on total purchase cost of materials. The entire quantity was received to production. The containers were returned in due course. Draw up a suitable statement to show (a) Total cost of materials purchased and (b) Unit cost of materials issued to production

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