[Cost Sheet Practical Problems and Solutions, Cost Accounting, Cost Sheet Format, All Universities of India, B.Com]
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In this post, you will get cost sheet practical problems and solutions which are asked Various B.Com Exams. Also go through Part 1 , Part 2 and Part 3 of cost sheet problems and solutions for more.
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Cost Sheet Practical Problems and
Solutions (Part 4)
Q.1. The Tripathi electrical ltd. Manufactures one product. A
Summary of its activities for 2015 is as follows:
|
Particulars |
Units |
Amount |
|
Sales Raw
Material (Opening) Raw
Material (Closing) W
– I – P (Opening) W
– I – P (Closing) Finished
Goods (Opening) Finished
Goods (Closing) Material
purchases Direct
Labour Manufacturing
overheads Selling
expenses General
and administrative expenses |
80,000 16,000 24,000 |
8,00,000 40,000 32,000 55,000 72,000 64,000 ………….. 1,52,000 1,45,000 1,08,000 50,000 40,000 |
Prepare a cost sheet showing total cost and profit made during the
year. Also show value of closing stock on the basis of LIFO and FIFO.
Cost
Sheet of Tripathi Electrical Ltd.
|
PARTICULARS |
AMOUNT |
UNIT |
|
Raw
Material (Opening) Add:
Material purchases Less:
Raw Material (Closing) |
40,000 1,52,000 32,000 |
|
|
(a)
Raw Material consumed during the year Add:
Direct Labour Add:
Factory overheads |
1,60,000 1,45,000 1,08,000 |
|
|
(b)
Work’s cost incurred Add:
W-I-P (Opening) Less:
W-I-P (Closing) |
2,68,000 55,000 72,000 |
|
|
(c)
Work’s cost Add:
Administrative Overheads |
2,51,000 40,000 |
|
|
(d)
Cost of production Add:
Finished goods (Opening) Less:
Finished goods (Closing) |
2,91,000 64,000 79,364 |
88,000 16,000 24,000 |
|
(e)
Cost of goods sold Add:
Selling and distributive overheads |
2,75,631 50,000 |
80,000 |
|
(f)
Total Cost (g)
Profit (Balancing figure) |
3,25,631 4,74,369 |
80,000 |
|
Sales |
8,00,000 |
80,000 |
Q. 2. Following are the figures extracted from the books of an
iron foundry after the close of the year: (Dibrugarh University – 2004)
|
Particulars |
Amount |
|
Raw
Materials: Opening
Stock Purchases
of Raw materials Closing
stock of raw materials Direct
wages Works
overheads Stores
overheads on materials |
14,000 1,00,000 10,000 20,000 50% of direct wages 10% on the cost of material |
10%
of the castings were rejected being not up to specification and a sum of Rs.
800 was realised from sale of scrap, 10% of the finished casting were found to
be defective in manufacture and were rectified by expenditure of additional
works overheads charged to the extent of 20 % on the proportionate direct
wages. The total gross output of castings during the year: 2000 tons. Find out
the manufacturing cost of the saleable casting per
ton.
Cost
Sheet of an Iron foundry Ltd.
|
PARTICULARS |
AMOUNT |
UNIT |
|
Materials
used: Opening
Stock Purchase Less:
Closing Stock |
14,000 1,00,000 10,000 |
1,04,000 |
|
Add:
Direct wages
Prime Cost
Work overhead: 50% of direct wages
Stores overhead: 10% of material cost |
20,000 1,24,000 10,000 10,400 |
|
|
Less:
Sale of scrap: 200 tons (i.e. 10% of gross output) |
1,44,400 800 |
|
|
Add:
Cost of rectification of defective works: 180 tons (i.e. 10% of net output) @
Rs. 2 per ton [Note – 1] |
1,43,600 360 |
|
|
Manufacturing
cost of 1,800 tons saleable castings |
1,43,960 |
|
|
Cost
per ton (approx) |
80.00 |
1. Working Note: Cost of rectification of defective works per ton:
Direct wages per ton = 20,000/2,000 = Rs. 10 per ton
Rectification cost: 20% of Rs. 10 = Rs. 2.
Q.3. From the following
information, prepare a cost sheet showing the cost and profit: (Dibrugarh
University – 2010)
|
Particulars |
Rs |
|
Opening
raw material |
29,500 |
|
Closing
raw material |
36,000 |
|
Opening
work-in-progress :
Material
Wages
Works overhead |
13,600 11,000 6,600 |
|
Closing
work-in-progress :
Material
Wages
Works overhead |
12,000 16,500 9,900 |
|
Opening
finished goods – 200 units @ Rs 84 Closing
finished goods – 1600 units |
|
|
Purchase
of raw material |
1,90,000 |
|
Carriage
on purchase |
1,500 |
|
Sale
of scrap of raw material |
5,000 |
|
Wages |
2,97,000 |
Works overhead @ 60% of direct labour cost
Administration overhead @ Rs 12 per unit produced
Selling and distribution overhead @ 20% of selling price
Sales – 7600 units at a profit of 10% on sales price.
Statement
of Cost or Cost sheet
|
PARTICULARS |
Units |
Amount |
Amount |
|
Opening
Stock of Raw material Add:
Purchase of Raw material Add:
Carriage inward Less:
Sale of scrap of raw material Less:
Closing Stock of Raw material |
29,500 1,90,000 1,500 5,000 36,000 |
||
|
(a)
Raw Material consumed during the year Add:
Direct wages |
1,80,000 2,97,000 |
||
|
Prime
Cost Add:
Works overhead @ 60% of direct labour cost |
4,77,000 1,78,200 |
||
|
Work’s
Cost incurred Add:
Opening stock of work-in-progress Material Wages Works
overhead Less:
Closing stock of work-in-progress Material Wages Works
overhead |
13,600 11,000 6,600 12,000 16,500 9,900 |
6,55,200 31,200 38,400 |
|
|
Work’s
cost / factory cost Add:
Administration overhead @ Rs 12 per unit produced (9,000 * 12) |
6,48,000 10,800 |
||
|
(b)
Cost of Production Add:
Opening Stock of finished goods (@84) Less:
Closing Stock of finished goods(658800/9000= 73.2) |
9,000 200 1,600 |
|
6,58,800 16,800 1,17,120 |
|
(c)
Cost of goods Sold Add:
Selling and Distributive overheads |
7,600 |
5,58,480 1,59,566 |
|
|
Total
cost of sales (d)
Add: Profit for the year |
7,600 |
7,18,046 79,783 |
|
|
Sales |
7,600 |
7,97,829 |
Production = Sales + closing stock – opening stock = 7,600+1,600 –
200 = 9,000
Working note:
Let the sales
be x
Less: Profit @ 10% on Sales 0.10x
Cost of
sales
0.90x
Less: Selling and distribution expenses (20% on
x) 0.20x
Cost of goods sold
0.70x
Now,
Selling and distribution overheads = (5,58,480*0.20x)/0.70x =
1,59,566
Profit for the year = (7,18,046*0.10x)/0.90x = 79,783
Q.4. Following extract of costing information relates to a
commodity for the year ended 31st March, 2012: (Dibrugarh
University – 2013)
|
Stock
on 1st April, 2011: Raw materials |
5000 |
|
Finished
product (1000 tones) |
4000 |
|
Stock
on 31st March, 2012: Raw materials |
5560 |
|
Finished
product (2000 tons) |
8000 |
|
Raw
materials purchased |
30000 |
|
Direct
wages |
25000 |
|
Rent,
Rates and Taxes |
1000 |
|
Carriage
inwards |
360 |
|
Work
in progress on 1st April, 2011 |
1200 |
|
Work
in progress on31st April, 2012 |
4000 |
|
Cost
of factory supervision |
2000 |
|
Sales
of finished goods |
75000 |
Advertisement and selling expenses amounts of 0.25 paise per ton
sold. 16000 tones were produced during the year. Prepare a statement showing:
a)
The
value of raw material used;
b)
The
cost of production;
c)
The
cost of turnover for the year;
d)
The
net profit for the year and net profit per ton.
Statement
of Cost or Cost sheet
|
PARTICULARS |
Units |
Amount |
|
Opening
Stock of Raw material Add:
Purchase of Raw material Add:
Carriage inward Less:
Closing Stock of Raw material |
5,000 30,000 360 5,560 |
|
|
(a)
Raw Material consumed during the year Add:
Direct wages |
29,800 25,000 |
|
|
Prime
Cost Add:
Work’s overheads: Cost
of factory supervision |
54,800 2,000 |
|
|
Work’s
Cost incurred Add:
Opening stock of work-in-progress Less:
Closing stock of work-in-progress |
56,800 1,200 4,000 |
|
|
Work’s
cost / factory cost Add:
Office and administrative overhead: Rent,
Rates and taxes |
54,000 1,000 |
|
|
(b)
Cost of Production Add:
Opening Stock of finished goods Less:
Closing Stock of finished goods |
16,000 1,000 2,000 |
55,000 4,000 8,000 |
|
(c)
Cost of goods Sold Add:
Selling and Distributive overheads (0.25*15,000) |
15,000 |
51,000 3,750 |
|
Total
cost of sales (d)
Add: Profit for the year |
15,000 |
54,750 20,250 |
|
Sales |
15,000 |
75,000 |
Profit per ton = 20250/15000 = 1.35
Q.5. Following details
relate to ATEACO Ltd. for the year ending 31.03.2013: (Dibrugarh
University – 2014)
|
01.04.2012 |
31.03.2013 |
|||
|
Units |
Rs. |
Units |
Rs. |
|
|
Stock of Raw Materials |
1000 |
12,000 |
800 |
10,000 |
|
Work-in-progress |
800 |
16,000 |
1000 |
20,000 |
|
Stock of Finished Goods |
6000 |
- |
10000 |
- |
Expenses during the year in Rs.
|
Direct
Wages |
6,00,000 |
|
Purchase
of Raw Materials (97000 units) |
11,14,000 |
|
Other
Materials |
36,000 |
|
Carriage
Inward |
5,640 |
|
Carriage
Outward |
3,000 |
|
Wages
to Foremen |
48,000 |
|
R
& D Expenses |
30,000 |
|
Other
Wages |
6,000 |
|
Manager’s
Salary |
72,000 |
|
Employee’s
State Insurance |
6,000 |
|
Power
and Fuel |
54,000 |
|
Office
Expenses |
36,000 |
|
Printing
and Stationery |
12,000 |
|
Counting
House Salary |
12,000 |
|
Sales
of Scraps |
1,640 |
|
Income
Tax |
22,000 |
|
Donation
to Charity |
5,000 |
Selling and Distribution expenses Rs. 1 per unit. Units
manufactured during the year are 96000. Finished stock is valued at current
cost. Prepare Cost Sheet showing the following:
a)
Materials
consumed
b)
Prime
cost
c)
Factory
cost
d)
Cost
of production
e)
Cost
of goods sold
f)
Total
cost of sales
Cost
Sheet of ATEACO Ltd.
|
PARTICULARS |
UNIT |
AMOUNT |
|
Opening
Stock of Raw material Add:
Purchase of Raw material Add:
Carriage inward Less:
Closing Stock of Raw material |
1,000 97,000 800 |
12,000 11,14,000 5,640 10,000 |
|
(a)
Raw Material consumed during the year Add:
Direct wages |
97,200 |
11,21,640 6,00,000 |
|
(b)
Prime Cost Add:
Work’s overheads:
Other material
Wages to foremen
Other wages
Power and fuel Less:
Sale of Scraps |
(1,000) |
17,21,640 36,000 48,000 6,000 54,000 (1,640) |
|
Work’s
Cost incurred Add:
Opening stock of work-in-progress Less:
Closing stock of work-in-progress |
800 1,000 |
18,64,000 16,000 20,000 |
|
(c)
Work’s cost / factory cost Add:
Office and administrative overhead: R
& D Expenses Manager’s
salary Employees
State Insurance Office
expenses Printing
& stationery Counting
House Salary |
18,60,000 30,000 72,000 6,000 36,000 12,000 12,000 |
|
|
(d)
Cost of Production Add:
Opening Stock of finished goods (20,28,000/96,000*6,000) Less:
Closing Stock of finished goods (20,28,000/96,000*10,000) |
96,000 6,000 10,000 |
20,28,000 1,26,750 2,11,250 |
|
(e)
Cost of goods Sold Add:
Selling and Distributive overheads |
92,000 - |
19,43,500 96,000 |
|
(f)
Total cost of sales |
92,000 |
20,39,500 |
Q.6. Following details
have been obtained from the costing records of a manufacturing company:
|
Particulars |
Amount |
|
Stock
of Raw material (Opening) Stock
of Raw material
(closing) Material
purchased Office
salaries (Drawings) Count
house salaries Carriage
inwards Carriage
outwards Cash
discount Bad
debt written off Repairs
to plant and machinery Rent,
rates, etc. (Factory) Rent,
rates, etc. (Office) Travelling
expenses Travelling
commission Productive
wages Depreciation
on Plant and machinery Depreciation
on office furniture Director’s
fees Gas
and water charges: Factory Gas
and water charges: Office General
charges Manager’s
Salary |
47,000 50,000 2,08,000 9,600 14,000 8,200 5,100 3,400 4,700 10,600 3,000 1,600 3,100 8,400 1,40,000 7,100 600 6,000 1,500 300 5,000 12,000 |
Out of 48 working hours in a week, the time devoted by the manager
in the factory and office was on average 40 hours and 8 hours respectively
throughout the accounting year. Prepare a statement of cost
Cost
Sheet of a Manufacturing Company Ltd.
|
PARTICULARS |
AMOUNT |
AMOUNT |
|
Stock
of Raw material (Opening) Add:
Material Purchased Add:
Carriage Inward Less:
Stock of Raw material (Closing) |
47,000 2,08,000 8,200 50,000 |
|
|
(a)
Raw material consumed during the year Add:
Productive wages |
2,13,200 1,40,000 |
|
|
(b)
Prime cost Add:
Factory overheads: Office
salaries (Drawing) Repairs
to Plant and Machinery Rent,
rates etc. (factory) Depreciation
on Plant & Machinery Gas
and water charges: Factory Manager’s
salary (12,000*40/48) |
9,600 10,600 3,000 7,100 1,500 10,000 |
3,53,500 41,800 |
|
(c)
Work’s Cost Add:
Office and Administrative overheads: Count
house salaries Rent,
rates, (Office) Depreciation
on office furniture Director’s
fees Gas
and water charges: Office General
charges Manager’s
Salary (12,000*8/48) |
14,000 1,600 600 6,000 300 5,000 2,000 |
3,95,300 29,500 |
|
(d)
Cost of production Add:
Selling and distributive overheads: Carriage
outward Bad
debt written off Travelling
expenses Travelling
commission |
5,100 4,700 3,100 8,400 |
4,24,800 21,300 |
|
Total
Cost |
4,46,100 |
7. Production cost of VSK
Ltd. a manufacturing company, for the year ending 31st March,
2011, are as follows:
|
Particulars |
Rs. |
|
Direct
wages Direct
materials Drawing
office salaries and expenses Salary
of general manager Advertising
display material Wages
of dispatch department Salaries
and expenses of directors Travelers’
salaries Depreciation
of delivery vans Chargeable
expenses Office
overhead (5% of works cost) Sales
office expenses Salary
of sales manager Rent
and rates of warehouses Catalogues
and price lists Rent
and Rates of showrooms Production
overheads (10% of prime cost) |
60,000 1,00,000 2,000 16,000 8,000 11,000 22,000 13,000 7,000 4,000 9,000 14,000 3,000 6,000 5,000 |
Draw up a cost statement from the above bearing in mind that goods
are sold at a profit of 20% on selling price.
Cost
Sheet of VSR Ltd.
For
the year ended on 31st March, 2011
|
PARTICULARS |
AMOUNT |
AMOUNT |
|
Direct
material Add:
Direct wages Add:
Chargeable expenses |
1,00,000 60,000 4,000 |
|
|
(a)
Prime Cost Add:
Factory Cost: Production
overhead (10% of Prime Cost) Drawing
Office salaries |
16,400 2,000 |
1,64,000 18,400 |
|
(b)
Work’s Cost Add:
Office & administrative overhead: Office
overheads (5% of Work’s Cost) Salary
of general manager Salaries
and expenses of directors |
9,120 16,000 22,000 |
1,82,400 47,120 |
|
(c)
Cost of Production Add:
Selling and distribution overhead: Advertising
display material Traveler’s
salaries Seles
office expenses Salary
of sales manager Catalogues
and price lists Rent
and rates of showroom Wages
of dispatch department Depreciation
of delivery van Rent
and Rates of warehouse |
8,000 13,000 9,000 14,000 6,000 5,000 11,000 7,000 3,000 |
2,29,520 76,000 |
|
(d)
Cost of sales Profit |
3,05,520 76,380 |
|
|
Sales |
3,81,900 |
Working Note: Sales price = 3,05,520*100/80 = 381900
8. A manufacturing company
produces two commodities X and Y. Related data for the year 2010-11 are as
follows:
|
Commodity |
||
|
X (Rs.) |
Y (Rs.) |
|
|
Number
of units produced Direct
expenses: Raw material used Wages Other direct expenses Other
expenses: Supervisor’s salary Selling and distribution expenses Administrative expenses |
5,000 16,020 9,430 6,950 5,824 1,504 1,918 |
3,000 11,735 7,846 4,719 |
Prepare a cost sheet showing the cost of each commodity taking the
following into consideration:
a)
Works
overhead will be charged in the ratio of prime cost.
b)
Administrative
expenses will be apportioned in the ratio that works cost of X bears to similar
cost of Y.
c)
Selling
and distribution expenses will be apportioned in production ratio.
Cost
Sheet of two commodities
For
the year ended on 2010-11
|
PARTICULARS |
X (5,000) |
Y (5,000) |
|
Raw
Material used Add:
Wages Other
Direct Expenses |
16,020 9,430 6,950 |
11,735 7,846 4,719 |
|
Prime
Cost Add:
Work Overhead: Supervisor’s
Salary [32,400:24,300] |
32,400 3,328 |
24,300 8,32 |
|
Work’s
Cost Add:
Office and administrative overhead: |
35,728 1,096 |
25,132 822 |
|
Cost
of production Add:
Selling and distribution overhead |
36,824 940 |
27,618 564 |
|
Total
Cost |
37,764 |
28,182 |
9. From the following
particulars of Jackson and Company Ltd. prepare a cost sheet for the month of
December, 2010:
|
Particulars |
Rs. |
|
Stock
on 1.12.10
Raw materials
Work-in-progress (valued at prime cost)
Finished goods Stock
on 31.12.10
Raw materials
Work-in-progress (valued at prime cost)
Finished goods Purchased
of raw materials Chargeable
expenses Abnormal
loss of materials Insurance
of raw materials Remuneration
of technical directors Internal
transport cost Factory
wages Personnel
department expenses Depreciation
of staff cars Cost
of free after-sales service Insurance
of finished stock Warehouse
wages Sales Professional
fees Market
research expenses Power
and fuel Works
canteen and welfare expenses Depreciation
of delivery van |
10,000 8,000 6,000 3,000 2,000 1,000 75,000 4,000 5,000 7,000 9,000 11,000 70,000 12,000 1,500 3,500 2,500 4,500 3,00,000 6,500 7,500 20,000 13,000 8,500 |
Cost
Sheet
For
The Month of December, 2010
|
PARTICULARS |
AMOUNT |
AMOUNT |
|
Raw
Material Consumed Add:
Opening Stock Add:
Purchases Add:
Insurance of raw materials |
10,000 75,000 7,000 |
|
|
Less:
Abnormal Loss Less:
Closing Stock |
92,000 5,000 3,000 |
84,000 |
|
Add:
Factory wages Add:
Chargeable expenses |
70,000 4,000 |
|
|
Adjustment
for work-in-progress: Opening Closing |
8,000 (2,000) |
1,58,000 6,000 |
|
Prime
Cost Add:
Factory overheads: Remuneration
of technical directors Internal
transport Power
and Fuel Works
canteen and welfare expenses |
9,000 11,000 20,000 13,000 |
1,64,000 53,000 |
|
Work
Cost Add:
Office and administrative overheads: Personnel
department expenses Depreciation
of staff cars Professional
fees |
12,000 1,500 6,500 |
2,17,000 20,000 |
|
Cost
of production Add:
Opening Stock of finished goods Less:
Closing Stock of finished goods |
2,37,000 6,000 1,000 |
|
|
Cost
of goods sold Add:
Selling and distribution overhead: Market
research expenses Cost
of free after sales service Insurance
of finished goods Warehouse
wages Depreciation
of delivery van |
7,500 3,500 2,500 4,500 8,500 |
2,42,000 26,500 |
|
Cost
of sales Profit
(Balancing figure) |
2,68,500 31,500 |
|
|
Sales |
3,00,000 |
10. ARB Ltd. furnished the
following information for the year 2010-11:
|
Particulars |
Rs. |
|
Stock
of raw materials on 1.4.10 Stock
of finished goods on 1.4.10 (500 tons) Freight
paid Prime
cost Stock
of raw materials on 31.3.11 Stock
of finished goods on 31.3.11 (750 tons) Direct
Labour:
60 skilled labourers @ Rs. 50 per day for 250 days
200 unskilled labourers @ Rs. 30 per day for 250 days Indirect
wages Factory
rent, rates and power Salary
of managing director Office
rent and taxes Donation Advertisement Income
tax Depreciation
of plant and machinery Selling
overhead Packing
and distribution expenses Fuel |
1,00,000 8,00,000 2,00,000 44,50,000 3,00,000 ? 40,000 30,000 50,000 1,00,000 30,000 4,50,000 60,000 35,000 5,00,000 85,990 65,000 |
Other information:
a)
During
the year 2010-11 2,250 tons of finished goods were sold.
b)
The
company valued the closing stock of finished goods under FIFO basis.
c)
The
company maintains profit @20% on sales.
On the basis of abovementioned data, you are required to prepare a
detailed cost sheet for the year 2010-11.
Cost Sheet of ABC Ltd
Period: Year ended 31-3-11
Output – 2,500 tons
|
PARTICULARS |
TOTAL |
PER TON |
|
Raw
Materials consumed: Stock
on 1-4-10 Purchases
(see note 2) Freight |
1,00,000 22,00,000 2,00,000 |
|
|
Less:
Stock on 31-3-11 |
25,00,000 3,00,000 |
|
|
Add:
Direct Labour Skilled:
60 x Rs. 50 x 250 days Unskilled
: 200 x Rs. 30 x 250 days |
22,00,000 7,50,000 15,00,000 |
880.00 |
|
Prime
cost Add:
Work overhead: Indirect
Labour
40,000 Factory
rent, rates, and
power
30,000 Depreciation
of Plant &
Machinery
35,000 Fuel 65,000 |
44,50,000 1,70,000 |
1,780.00 68.00 |
|
Work’s
cost Add:
Office and administrative overheads: Salary
of Managing
Director
50,000 Office
rent and
taxes 1,00,000 |
46,20,000 1,50,000 |
1,848.00 |
|
Cost
of production (2,500) Add:
Stock of finished goods on 1-4-10 |
47,70,000 8,00,000 |
1,908.00 |
|
Less:
Stock of finished goods on 31-3-11 |
55,70,000 14,31,000 |
|
|
Cost
of goods sold (2,250 ton) (See Note – 3) Add:
Selling and distributive overhead: Advertisement
4,50,000 Selling
overhead
5,00,000 Packaging
and distribution
expenses
85,990 |
41,39,000 10,35,990 |
1,839.56 460.44 |
|
Cost
of sales Profit
(20% on sale i.e. 25% on cost) |
51,74,990 12,93,748 |
2,300.00 575.00 |
|
Sales |
64,68,730 |
2,875.00 |
Note 1: Production during the year: (Sales 2,250 tons +
closing stock 750 tons – opening stock 500 tons) = 2,500 tons
Note 2: Calculation of Purchases:
|
Prime
Cost Less:
Direct Labour Add:
Closing Stock of Raw material Less:
Freight Less:
Opening Stock of Raw material |
44,50,000 22,50,000 3,00,000 2,00,000 1,00,000 |
|
Purchases |
22,00,000 |
Note 3: Per unit cost of goods sold Rs. 1,839.56 has been obtained
by 44,39,000 by 2,250.
11. The accounts of the Steel
ways Engineering Co. Ltd. show for 2010:
|
Rs. |
|
|
Materials
used Manual
and machine labour wages directly chargeable Works
overhead expenditure Establishment
and general expenses |
1,80,000 1,60,000 40,000 19,000 |
a) Show the works cost and total
cost, the percentage that the works overhead cost bears to the manual and
machine labour wages and the percentage that the establishment and general
expenses bear to the works cost.
b) What price should the company
quote to manufacture a machine which, it is estimated will require an
expenditure of Rs. 8,000 on materials and Rs. 6,000 on wages so that it will
yield a profit of 25% on the total cost or 20% on selling price.
Cost Sheet or
Statement of Cost
Of Steel Ways Ltd
|
PARTICULARS |
AMOUNT |
|
Material
used Manual
and machine labour wages (Directly chargeable) |
1,80,000 1,60,000 |
|
Prime
Cost Work’s
overhead expenditure |
3,40,000 40,000 |
|
Work’s
Cost Establishment
& General Expenses |
3,80,000 19,000 |
|
Total
cost |
3,99,000 |
|
Percentage
of works overhead to manual and machine labour = (40,000/1,60,000*100) Percentage
of establishment and general expenses to work’s cost =
(19,000/3,80,000*100) |
25% 5% |
Statement of Estimated Cost for the Manufacture of the Machine
Enquiry from………….
|
PARTICULARS |
AMOUNT |
|
Cost
of Materials Direct
wages |
8,000 6,000 |
|
Prime
Cost Works
overhead (25% of wages) |
14,000 1,500 |
|
Work’s
Cost Establishment
and general expenses (5% of work’s cost) |
15,500 775 |
|
Total
Cost Profit
(20% on selling price or 25% on cost) |
16,275 4,069 |
|
Price
to be quoted |
20,344 |
12. From the following
particulars prepare a statement in such from as you consider most suitable for
showing clearly all element of cost:
|
Particulars |
Rs. |
Particulars |
Rs. |
|
Opening
stock of raw materials Purchase
of raw materials Raw
materials returned to suppliers Closing
stock of raw materials Wages
paid to:
Productive workers
Non-productive workers Salaries
paid to office staff Carriage
on raw materials purchased |
25,000 70,000 2,000 18,800 18,000 2,000 5,000 500 |
Carriage
on goods sold Rent
and rates of workshop Fuel,
gas and water etc. Repairs
to plant Depreciation
on machinery Office
expenses Direct
chargeable expenses Advertising Abnormal
loss of raw materials |
1,500 2,500 1,000 600 1,400 1,500 800 1,200 1,200 |
Cost Sheet or
Statement of Cost
|
PARTICULARS |
AMOUNT |
AMOUNT |
|
Material
Consumed: Opening
Stock Purchases Carriage
on Purchases |
25,000 70,000 500 |
|
|
Less:
Return |
95,500 2,000 |
|
|
Less:
Abnormal loss |
93,500 1,200 |
|
|
Less:
Closing Stock |
92,300 18,800 |
73,500 |
|
Productive
Wages Direct
chargeable expenses |
18,000 800 |
|
|
Prime
Cost Work’s
overheads: Non-productive
wages Rent,
rates of workshop Fuel,
gas, water etc Repairs
to plant Depreciation
on Machinery |
2,000 2,500 1,000 600 1,400 |
92,300 7,500 |
|
Work’s
Cost Office
overheads: Salaries
to Office staff Office
expenses |
5,000 1,500 |
99,800 6,500 |
|
Cost
of production Selling
& distributing Overheads: Carriage
on goods sold Advertising |
1,500 1,200 |
1,06,300 2,700 |
|
Cost
of sales |
1,09,000 |
Note: Abnormal loss of materials should be excluded from cost and
debited to Costing profit and loss A/c, hence it has been deducted from
material cost.
13. The following data relate to the manufacture of a standard
product during the four-week period to June 30th, 2011:
|
Particulars |
Rs. |
|
Raw
materials consumed Wages Machine
hours worked Machine
hour rate Office
overhead Selling
overhead Units
produced Units
sold |
4,000 6,000 1,000 50 paise 20% on works cost 6 paise per unit 20,000 18,000 @ Re. 1 per unit |
You are required to prepare a cost sheet showing the cost per unit
and profit for the period.
Cost Sheet or
Statement of Cost
Output
– 20,000 units
Period:
4 weeks ended 30-06-11
|
PARTICULARS |
TOTAL
AMOUNT (Rs.) |
PER
UNIT (Rs.) |
|
Raw
Material consumed Wages |
4,000 6,000 |
0.200 0.300 |
|
Prime
Cost Add:
Work’s overhead: 1,000
hours @ Re. 50 |
10,000 500 |
0.500 0.025 |
|
Work’s
Cost Add:
Office overhead: (20%
of Work’s Cost) |
10,500 2,100 |
0.525 0.105 |
|
Cost
of Production Less:
Closing Stock (2,000 units @ Re. 0.630) |
12,600 1,260 |
0.630 |
|
Cost
of goods sold (18,000 units) Add:
Selling overhead: 0.60
per unit on 18,000 units |
11,340 1,080 |
0.630 0.060 |
|
Cost
of sales Profit
(Balancing figure) |
12,420 5,580 |
0.690 0.310 |
|
Sales |
18,000 |
1.000 |
14. From the following particulars you are required to prepare a
monthly cost sheet of a manufacturing company showing cost and profit per 1,000
units of production. Show also in the form of a summary the cost of sales, net
profit and sales for the month. The company manufacturers only one type of
product. The opening stock was valued at the same price per 1,000 units as the
production of the month concerned.
|
Particulars |
Amount |
|
Materials:
Basic raw materials
Stores Labour:
Direct
Indirect Overheads:
Works
Office Production
for the month of November, 2010 Sales
for the month Stock
at the beginning of the month Stock
at the end of the month |
1,400 tonnes @ Rs. 5 per ton Rs. 5,000 16,000 3,000 25% of direct labour 10% of works cost 10,00,000 units 9,00,000 units @ Rs. 50 per 1,000 units 2,00,000 units 3,00,000 units |
Cost Sheet or Statement of Cost
|
PARTICULARS |
TOTAL
AMOUNT |
UNIT |
|
Basic
raw materials: 1,400 tonnes @ Rs. 5 per tones Direct
Labour |
7,000 16,000 |
700 1,600 |
|
Prime
Cost Indirect
materials Indirect
Labour Work’s
overhead (25% of direct labour) |
23,000 5,000 3,000 4,000 |
2,300 500 300 400 |
|
Work
Cost Office
overhead (10% of work’s cost) |
35,000 3,500 |
35.00 3.50 |
|
Cost
of production Add:
Opening Stock: 2,00,000 unit @ Rs. 38.50 per thousand unit |
38,500 7,700 |
38.50 |
|
Less:
Closing Stock: 3,00,000 unit @ Rs. 38.50 per thousand unit |
46,200 11,550 |
|
|
Cost
of goods sold (9,00,000 units) Profit
(Balancing figure) |
34,650 10,350 |
11.50 |
|
Sales |
45,000 |
50.00 |
15. The following figures
for the month of April, 2011 were extracted from the records of a factory:
|
Particulars |
Rs. |
|
Opening
stock of finished goods (5,000 units) Purchase
of raw materials Direct
wages Factory
overhead Administration
overhead Selling
and distribution overhead Closing
stock of finished goods (10,000 units) Sales
(45,000 units) |
45,000 2,57,100 1,05,000 100% of direct wages Re. 1 per unit 10% of sales ? 6,60,000 |
Prepare
a cost sheet for the month of April, 2011, assuming that sales are made on the
basis of ‘first-in-first-out’ principle.
Statement
of cost
Output:
50,000 units (See Note – 1)
Period:
April, 2011
|
PARTICULARS |
TOTAL AMOUNT (Rs.) |
PER UNIT (Rs.) |
|
Raw
Material Direct
Wages |
2,57,100 1,05,000 |
5.142 2.100 |
|
Prime
Cost Add:
Factory Overhead (100% of direct wages) |
3,62,100 1,05,000 |
7.242 2.100 |
|
Work’s
Cost Add:
Administration overhead (Re. 1 per unit) |
4,67,100 50,000 |
9.342 1.000 |
|
Cost
of production Add:
Opening Stock of finished goods |
5,17,100 45,000 |
10.342 |
|
Less:
Closing Stock of finished goods (10,000 units @ Rs. 10.342) (See Note 2) |
5,62,100 1,03,420 |
|
|
Cost
of goods sold (45,000 units) Add:
Selling and distribution overhead @ 10% of sales |
4,58,680 66,000 |
1.467 |
|
Cost
of Sales Profit
(Balancing figure) |
5,24,680 1,35,320 |
11.809 2.858 |
|
Sales
(See Note – 3) |
6,60,000 |
14.667 |
Note
– 1: Production during the month: [Sales 45,000 unit + closing stock 10,000
units – opening stock 5,000 units] = 50,000 units.
Note
– 2: Since goods have been sold on FIFO basis the entire closing stock
represents current production @ Rs. 10.342 per unit, because sales include all
opening stock and part of current production.
Note
– 3: Per unit sale Rs. 14.667 has been obtained by dividing Rs. 6,60,000 by
45,000 sales units.
16. The Tripati
Electricals Ltd. manufacturers one product. A summary of its activities for
2010 is as follows:
|
Particulars |
Units |
Rs. |
|
Sales Material
inventory:
1.1.10
31.12.10 Work-in-progress
inventory:
1.1.10
31.12.10 Finished
goods:
1.1.10
31.12.10 Material
purchases Direct
labour Manufacturing
overheads Selling
expenses General
and administration expenses |
80,000 16,000 24,000 |
8,00,000 40,000 32,000 55,000 72,000 64,000 - 1,52,000 1,45,000 1,08,000 50,000 40,000 |
Prepare a cost sheet showing:
a) The total cost of goods
manufactured (finished), the number of units manufactured (finished) and the
cost per unit; and
b) The cost of goods sold for the
year presuming the company uses the LIFO inventory costing method for its
finished goods inventory.
Statement
of cost
Output:
88,000 units (See Note – 1)
Period:
Year ended 5/12/10
|
PARTICULARS |
TOTAL
AMOUNT (Rs.) |
PER
UNIT (Rs.) |
|
Materials
Consumed: Opening
Inventory
40,000 Purchases
1,52,000
1,92,000 Less:
Closing inventory 32,000 Add:
Direct labour |
1,60,000 1,45,000 |
1.81818 1.64773 |
|
Prime
Cost Add:
Manufacturing overhead: |
3,05,000 1,08,000 |
3.46591 1.22727 |
|
Adjustment
for work-in-progress Opening 55,000 Closing (-) 72,000 |
4,13,000 (-)17,000 |
4.69318 (-)0.19318 |
|
Work
Cost Add:
General and Administration expenses: |
3,96,000 40,000 |
4.50000 0.45455 |
|
Total
Cost of goods manufactured Add:
Opening Stock (16,000 units) |
4,36,000 64,000 |
4.95455 |
|
Less:
Closing Stock (24,000 units) (See Note – 2) |
5,00,000 1,03,636 |
|
|
Cost
of goods sold (80,000 units) Add:
Selling and Distributive overhead |
3,96,364 50,000 |
0.625000 |
|
Cost
of sales Profit
(Balancing figure) |
4,46,364 3,53,363 |
5.57955 4.42045 |
|
Sales |
8,00,000 |
10.00000 |
Working Note: Note – 1: Production during the month: (Sales 80,000
units + closing stock 24,000 units – opening stock 16,000 units) = 88 units.
Note – 2: Value of closing stock on LIFO basis:
|
Rs. |
|
|
16,000
units @ Rs. 4 per unit 8,000
units @ Rs. 4.95455 per unit |
64,000 39,636 |
|
1,03,636 |