28 November 2008
This r the details available in respect of a consignment of 13250kgs of material of x. a) Invoice price --rs. 20 per kg b) Excise duty--- 25 percent on invoice price c) Sales tax ---8 percent of invoice price including excise duty d) Trade discount --10 percent on invoice price e) insurance -- 1 percent of aggregate net price delivery charges rs. 250 cost of container @rs. 60 per container for 50 kgs of material rebats is allowed @ rs. 40 per container if returned within 6 weeks wich is normal. One container load of material was rejected on inspection & not accepted. Cost of unloading & handling @0.25percent of cost of material ultimately accepted. On the basis of above information how to calculate laanded cost of per kg of material of x. Plz answer in detail by giving working notes & some explanations?
Invoice price Rs20 per KG Excise duty Rs 5(see workings1) Sales tax Rs 2 (see Working2) Total 27 Trade discount RS 2 (see working) Net price Rs 25
Insurance 0.25(seewn4)
Total price /kg 25.25
Total price 333300 SEE Note 5 Delivery charges 250 Container cost 5280( see notes) Handling 847 Landing cost 339677
Note 1
Calculation of Excise duty Rs 20*25/100=Rs 5/
Note 2 Sales tax Rs 20+5=25 =Rs25*8/100=Rs 2/ Note 3 Trade discount It is menyioned in the question that 10% on the invoice price .invoice price is Rs 20 =Rs20*10/100=RS 2/ Note 4 Insurance cost
=RS 25*.1/100=RE.025 Note 5 One kg of container of 50 kg has been rejected So total shall be 13250-50=13200 Total price shall be 13200*25.25=333300 Note 6 Cost of container 13200/50*(60-40)=5280 Container will return within the period.
handling charges Cost of material ultimaly accepted =333300+250+5280*.25/100=847
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