Pinku Confectioners (PC) owns a bakery which is used to make bakery items like pastries, cakes and muffins. PC use to bake atleast 50 units of any…

Statement of cost per batch and per order No. of batch = 600 units ÷ 50 units = 12 batches Particulars Cost per batch (₹) Total Cost (₹) Direct Material Cost 5,000.00 60,000 Direct Wages 500.00 6,000 Oven set-up cost 750.00 9,000 Add: Production Overheads (20% of Direct wages) 100.00 1,200 Total Production cost 6,350.00 76,200 Add: S&D and Administration overheads (10% of Total production cost) 635.00 7,620 Total Cost 6,985.00 83,820 Add: Profit (1/3rd of total cost) 2,328.33 27,940 (i) Sales price 9,313.33 1,11,760 No. of units in batch = 50 units (ii) Cost per unit (₹ 6,985 ÷ 50 units) = 139.70 Selling price per unit (9,313.33 ÷ 50 units) = 186.27 (iii) If the order is for 605 cakes, then selling price per cake would be as below: Particulars Total Cost (₹) Direct Material Cost (605/50 * 5,000) 60,500 Direct Wages (605/50 * 500) 6,050 Oven set-up cost (605/50 * 750) 9,075 Add: Production Overheads (20% of Direct wages) 1,210 Total Production cost 76,835 Add: S&D and Administration overheads (10% of Total production cost) 7,683.50 Total Cost 84,518.50 Add: Profit (1/3rd of total cost) 28,172.83 Sales price 1,12,691.33 No. of units 605 units Selling price per unit (₹ 1,12,691.33 ÷ 605 units) 186.27