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ILLUSTRATION 16 A furniture manufacturer purchased 10,000 cft. of timber logs on 1st October, 2018...

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ILLUSTRATION 16 A furniture manufacturer purchased 10,000 cft. of timber logs on 1st October, 2018 @ $10 per c.ft. and stores them in his timber yard for 6 months for seasoning. In the timber yard, the following items of expenses were incurred during the period of seasoning: (i) Rent of the yard (3,000 sq. ft.) $250 per month. (ii) Salaries of 5 watchmen and khalasis @ $100 per month (iii) Incidental expenses for maintenance, lighting etc. @ $150 per month. (iv) Annual share of general overhead expenses of the business $2,000. (v) Insurance charge of the logs to be seasoned @ 1% on the value of unseasoned logs for the period of seasoning. 50% of the floor area of the yard has been set apart for seasoning timber and the remaining floor area has been occupied by the shops making furniture. Loss in volume of logs due to seasoning is 10%. Calculate the price to be charged of issue on the seasoned logs per c. ft

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