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 in Jain and
Narangs’ Book (Part 1). Also go through Part 2 , Part 3 and Part 4 of cost sheet problems and solutions for more.
You can also go through my
comprehensive article on Cost Sheet Format.
JAIN AND NARANG’S BOOK PRACTICAL PROBLEM SOLVED
Cost Sheet or
Statement of Cost
|
PARTICULARS |
AMOUNT |
AMOUNT |
|
Raw Materials Add: Productive Wages |
33,000 38,000 |
|
|
(a) Prime Cost Add: Factory Overhead: Unproductive wages Factory rent and taxes Factory lighting Factory heating Motive power Haulage (works) Director’s Fees (works) Factory cleaning Estimating expenses (works) Factory stationery Water supply (works) Factory insurance Depreciation of Plant &
Machinery Loose Tools written off |
10,500 7,500 2,200 1,500 4,400 3,000 1,000 500 800 750 1,200 1,100 2,000 600 |
71,000 37,050 |
|
(b) Factory Cost Add: Office and administrative
overhead: Director’s fees (Office) Sundry office expenses Office stationery Office Insurance Legal expenses Depreciation on office Building Rent and Taxes (office) Bank charges |
2,000 200 900 500 400 1,000 500 50 |
1,08,050 5,550 |
|
(c) Cost of production Add: Selling & Distribution
overhead: Rent of warehouse Depreciation on Delivery vans Bad debts Advertising Sales department’s salaries Un of delivery vans Commission of sales |
300 200 100 300 1,500 700 1,500 |
1,13,600 4,600 |
|
Total Cost |
1,18,200 |
Cost per ton = 1,18,200/14,775 = Rs. 8
per ton
Solution of Problem
No. 2
In the Books of Z
Manufacturing Company
Cost Sheet
|
PARTICULARS |
AMOUNT |
AMOUNT |
|
Raw Material Consumed: Opening Stock Purchases Carriage on purchases Less: Closing Stock of Raw Materials |
62,800 1,85,000 7,150 48,000 |
|
|
(a) Raw Materials consumed during
the year Productive wages |
2,06,950 1,26,000 |
|
|
(b) Prime Cost Works overheads: Factory Office salaries Repairs of plant, machinery &
tools Rent, rates, taxes & insurance Depreciation on plant, machinery and
tools Gas and water Manager’s salary |
6,500 4,450 8,500 6,500 1,200 7,500 |
3,32,950 34,650 |
|
(c) Factory Cost Administrative Overheads: General Office salaries Rent, rates, taxes & insurance Depreciation on furniture Director’s fees Manager’s salary General expenses Gas and water |
12,600 2,000 300 6,000 2,500 3,400 400 |
3,67,600 27,200 |
|
(d) Cost of production Selling & distributive Overheads: Carriage outward Bad debts written off Travelling expenses Traveler’s salaries & commission |
4,300 6,500 2,100 7,700 |
3,94,800 20,600 |
|
(e) Total Cost Net Profit |
4,15,400 45,700 |
|
|
(f) Sales |
4,61,100 |
Solution of Problem
No. 3
Ans:
Cost Sheet of
sunshine Industries Ltd.
For the year 2012
|
PARTICULARS |
AMOUNT |
AMOUNT |
|
Opening Stock of Raw Material Add: Purchases Add: Carriage inward Less: Closing Stock of Raw Materials |
25,000 85,000 5,000 40,000 |
|
|
(a) Raw Material Consumed during the
year Add: Direct wages |
75,000 90,000 |
|
|
(b) Prime Cost Add: Factory Overheads: Wages (Indirect) Rent & Rates Depreciation on Plant &
Machinery Indirect consumption of Material Other Factory expenses Manager’s Remuneration |
10,000 5,000 1,500 500 5,700 4,000 |
1,65,000 26,700 |
|
(c) Work’s Cost Add: Office and Administrative
Overhead: Rent & Rates Depreciation on office furniture Salary Other office expenses Manager’s Remuneration |
500 100 2,500 900 2,000 |
1,91,700 6,000 |
|
(d) Cost of Production Add; Selling & distributive
overhead: Salary of salesmen Manager’s Remuneration Advertisement expenses Travelling expenses of salesmen Carriage and Freight outward Bad debts written off |
2,000 6,000 2,000 1,100 1,000 1,000 |
1,97,700 13,100 |
|
(e) Cost of sales (f) Profit (Balancing figure) |
2,10,800 39,200 |
|
|
Sales |
2,50,000 |
Solution of Problem
No. 4
Cost Sheet
For the month of
September, 2012
|
PARTICULARS |
AMOUNT |
|
Raw Materials (Opening) Add: purchase of Raw Materials Less: Raw Materials (closing) |
1,00,000 88,000 1,23,500 |
|
Raw Materials consumed Add: Direct wages |
64,500 70,000 |
|
Prime Cost Add: Work’s overheads: Less: Sale of Factory scrap |
1,34,500 39,500 2,000 |
|
Work’s Cost incurred Add: Work-in-progress (Opening) Les: work-in-progress (Closing) |
1,72,000 31,000 34,500 |
|
Work’s Cost Add: Office and administrative
Overhead |
1,68,500 13,000 |
|
Cost of Production Add: Finished goods (Opening) |
1,81,500 71,500 |
|
Less: Finished goods (Closing) |
2,53,000 42,000 |
|
Cost of goods sold Add: Selling and Distributive
overhead: Cost of goods sold Profit (Balancing figure) |
2,11,000 15,000 2,26,000 58,000 |
|
Sales |
2,84,000 |
Solution of Problem
No. 5
In the Books of
Modern Manufacturing Company
Cost Sheet
|
PARTICULARS |
AMOUNT |
AMOUNT |
|
Raw Material Consumed: Opening Purchases Less: Closing Stock of Raw Materials |
3,000 1,10,000 4,000 |
|
|
(a) Raw Materials Consumed during
the year Direct Labour |
1,09,000 65,000 |
|
|
(b) Prime Cost Works Overheads: Factory overhead (60% of direct
labour cost) Add: Opening stock of
work-in-progress Less: Closing stock of work-in-progress |
39,000 4,000 6,000 |
1,74,000 37,000 |
|
(c) Factory’s Cost Administrative Overheads: Administrative expenses (5% of
sales) |
2,11,000 13,750 |
|
|
(d) Cost of Production Add: Opening stock of finished goods Less: Closing stock of finished
goods |
2,24,750 7,000 8,000 |
|
|
(e) Cost of goods sold Selling and Distributive Overhead: Selling Expenses (10% of sales) |
2,23,750 27,500 |
|
|
(f) Total cost Net Profit |
2,51,250 23,750 |
|
|
(g) Sales |
2,75,000 |
Solution of Problem
No. 6
In the Books of
Manufacturing Company
Cost Sheet
|
PARTICULARS |
AMOUNT |
AMOUNT |
|
Raw Material Consumed: Opening Stock Purchases Less: Closing Stock of Raw Materials |
40,000 4,00,000 50,000 |
|
|
(a) Raw Material consumed during the
year Direct Labour |
3,90,000 3,00,000 |
|
|
(b) Prime Cost Works Overheads: Indirect Labour Lubricants Insurance on Plant Power Depreciation on Machinery Factory Rent Property for factory Building |
50,000 10,000 3,000 30,000 50,000 60,000 11,000 |
6,90,000 2,14,000 |
|
(c) Factory cost incurred Add: Opening Stock of work-in-progress Less: Closing Stock of
work-in-progress |
9,04,000 10,000 14,000 |
|
|
(d) Factory Cost Administrative Overheads: Administrative Expenses |
9,00,000 1,00,000 |
|
|
(e) Cost of Production Add: Opening Stock of finished goods Less: Closing Stock of finished
goods |
10,00,000 1,00,000 1,50,000 |
|
|
(f) Cost of goods sold Selling and Distributive Overhead: Sale Commission Salaries of Salesman Carriage outward |
60,000 1,00,000 20,000 |
9,50,000 1,80,000 |
|
(g) Total Cost Net Profit |
11,30,000 70,000 |
|
|
(h) Sales |
12,00,000 |
Solution of Problem
No. 7
Statement Cost Sheet
|
PARTICULARS |
AMOUNT |
AMOUNT |
|
Raw Material Consumed: Opening Stock Purchases Carriage inward |
30,000 1,20,000 |
|
|
Less: Closing Stock of Raw Materials |
1,50,000 35,000 |
|
|
(a) Raw Material consumed during the
year Productive wages |
1,15,000 90,000 |
|
|
(b) Prime Cost Factory Overheads: Indirect wages Factory rent & rates Plant repair Depreciation on plant Factory lighting |
9,720 7,830 3,420 8,360 7,380 |
2,05,000 36,710 |
|
(c) Factory cost incurred Add: Opening Stock of
work-in-progress Less: Closing Stock of
work-in-progress |
2,41,710 15,000 20,000 |
|
|
(d) Factory Cost |
2,36,710 |
Income Statement
For the year
ended on 31-12-2012
|
Particulars |
Amount |
|
Net Sales Less: Cost of Goods Sold Opening stock of finished
goods 43,700 Add: Factory
cost 2,36,710 2,80,410 Less: Closing stock of finished
goods 54,000 |
3,25,000 2,26,410 |
|
Gross Profit Less: Operating Expenses Office and Administrative overheads
(15,030+13,500+2,000) 30,530 Selling and Distribution overheads
(1,200+7,650) 8,850 |
98,590 39,380 |
|
Net Profit |
59,210 |
Solution of Problem
No. 8
Statement Cost
Sheet
|
PARTICULARS |
AMOUNT |
AMOUNT |
|
Raw Material Consumed: Opening Stock Purchases Carriage inward Less: Closing Stock of raw material |
40,000 4,75,000 12,500 50,000 |
|
|
(a) Raw Material Consumed during the
year Wages |
4,77,500 1,75,000 |
|
|
(b) Prime Cost Factory Overhead: Work’s manager’s salary Factory employee’s salary Factory rent, taxes, insurance Power expenses Other production expenses |
30,000 60,000 7,250 9,500 43,000 |
6,52,500 1,49,750 |
|
(c) Factory cost incurred Add: Opening stock of
work-in-progress Less: Closing Stock of
work-in-progress |
8,02,250 15,000 10,000 |
|
|
(d) Factory Cost Administrative Overhead: General Expenses |
8,07,250 32,500 |
|
|
(e) Cost of Production Add: Opening stock of finished goods Less: Closing stock of finished
goods |
8,39,750 6,000 15,000 |
|
|
(f) Cost of goods Sold Selling and Distribution Overhead: Selling Expenses |
8,30,750 9,250 |
|
|
(g) Total Cost Net Profit |
8,40,000 20,000 |
|
|
(h) Sales |
8,60,000 |
Solution of Problem
No. 9
In the books of a
Manufacturing firm
|
PARTICULARS |
AMOUNT |
AMOUNT |
|
Opening Stock of Raw Materials Add: Purchases of Raw Materials |
40,000 11,00,000 |
|
|
Less: Closing Stock of Raw Materials |
11,40,000 1,40,000 |
|
|
(a) Raw Materials Consumed during
the year Add: Productive Wages |
10,00,000 5,00,000 |
|
|
(b) Prime Cost Add: Factory Overheads: Work’s Overhead |
15,00,000 1,50,000 |
|
|
(c) works/Manufacturing/Factory Cost Add: Office and Administrative
Overheads |
16,50,000 1,00,000 |
|
|
(d) Cost of production Add: Opening Stock of finished goods Less: Closing Stock of finished
goods |
50,000 60,000 |
17,50,000 (10,000) |
|
(e) Cost of goods sold /sales Add: Profit |
17,40,000 6,60,000 |
|
|
Sales |
24,00,000 |
Working Note:
% of works overheads to Productive
Wages = (1,50,000/5,00,000 * 100) = 30%
% of General overheads to Works Cost =
(1,00,000/16,50,000*100) = 6.06%
Solution of Problem
No. 10
Statement of Cost
Sheet
|
PARTICULARS |
UNIT |
AMOUNT |
|
Raw Material Consumed Wages |
15,000 9,000 |
|
|
(a) Prime Cost Factory Overheads (900 x 5) |
24,000 4,500 |
|
|
(b) Work’s cost Administrative Overheads (28,500 x
20%) |
28,500 5,700 |
|
|
(c) Cost of Production Less: Closing Stock of finished
goods (34,200/17,100 = 2*1,100) |
17,100 1,100 |
34,200 2,200 |
|
(d) Cost of goods sold Selling & Distribution Overheads
(16,000*0.5) |
16,000 |
32,000 8,000 |
|
(e) Total Cost Net Sales |
16,000 |
40,000 24,000 |
|
Sales |
16,000 |
64,000 |
Working Note:
Cost of production per unit =
(34,200/17,100 = 2)
Profit per unit = (24,000/16,000 =
1.50)
Solution of Problem
No. 11
Statement of Cost
|
PARTICULARS |
UNIT |
AMOUNT |
|
Raw Materials Consumed: Opening Stock Purchases Less: Closing Stock of Raw Material |
3,000 28,000 4,500 |
|
|
(a) Raw Material consumed during the
year Manufacturing wages |
26,500 7,000 |
|
|
(b) Prime Cost Work’s Overheads: Factory rent & rates Depreciation on plant |
33,500 3,000 1,500 |
|
|
(c) Work’s Cost Administrative Overheads: Office rent General Expenses |
38,000 500 400 |
|
|
(d) Cost of production Add: Opening stock of finished goods Less: Closing Stock of finished
goods (38,900/3,000 = 12.97 * 400) |
3,000 200 400 |
38,900 2,800 5,187 |
|
(e) Cost of goods sold Selling & Distributive
Overheads: Advertisement Expenses |
2,800 - |
36,513 600 |
|
(f) Total Cost Add: Net Profit |
2,800 - |
37,113 12,887 |
|
Sales |
2,800 |
50,000 |
Working Note: Total cost
per ton = (Total Cost / Output during the year)
Solution of Problem
No. 1 2
Statement of Cost
Sheet
|
PARTICULARS |
Orient
(78) |
Sujon
(287) |
||
|
Unit |
Total |
Unit |
Total |
|
|
Material Wages |
350 200 |
27,300 15,600 |
1,08,680 62,920 |
|
|
(a) Prime Cost Add: Factory Overheads (80% on
labour) |
550 160 |
42,900 12,480 |
50,336 |
|
|
(b) Work’s Cost Add: Office & Administrative
Overhead |
710 106.50 |
55,380 8,307 |
||
|
(c) Cost of production Profit |
816.5 183.50 |
63,687 14,313 |
||
|
(d) Sales |
1,000 |
78,000 |
||
Solution of Problem
No. 1 3
Cost Sheet
For the year 2012
|
PARTICULARS |
AMOUNT |
AMOUNT |
|
Raw Materials Consumed during the
year Add: Direct Wages |
12,00,000 10,00,000 |
|
|
Prime Cost Add: Factory Overheads: Indirect Labour in works Storage of raw materials and spares Fuel Tools consumed Depreciation on Plant Salaries of works personnel Excise duty on production |
2,00,000 50,000 1,50,000 20,000 1,00,000 1,00,000 2,00,000 |
8,20,000 |
|
Factory Cost/Work’s Cost Add: Office and Administrative
Overhead: Administrative office expenses Salary of Managing Director Fees of directors Salary of joint Managing Director |
2,00,000 60,000 20,000 40,000 |
30,20,000 3,20,000 |
|
Cost of Production Add: Selling and Distributive
Overheads: Expenses on advertising Selling Expenses Sales depots Packaging and distribution |
1,60,000 1,80,000 1,20,000 1,20,000 |
33,40,000 5,80,000 |
|
Cost of sales Add: Profit margin (20% on sales or
25% on cost) |
39,20,000 9,80,000 |
|
|
Sales |
49,00,000 |
Working Note:
Selling Price per unit before subsidy
by government = (49,00,000/20,000) = Rs. 245
Selling price per unit after subsidy
by government = Rs. 245 – Rs. 100 = Rs. 145
IMPORTANT NOTE: Selling price to be
estimated, we have to convert profit margin from sales to cost.
Solution of Problem
No. 1 4
Cost Sheet of
Raja Textiles Co. Ltd.
For the year
ended on 2011 – 12
|
PARTICULARS |
AMOUNT |
AMOUNT |
|
Cotton Consumed Add: Carriage Inward |
10,00,000 50,000 |
10,50,000 |
|
(a) Raw Material Consumed during the
year Add: Direct Wages |
10,50,000 10,00,000 |
|
|
Prime Cost Add: Factory Overheads: Indirect labour Salary of work director and staff in
factory Water, power and local taxes Dyeing, Bleaching Depreciation Excise and other taxes Misc. Expenses |
4,00,000 2,50,000 5,00,000 10,00,000 2,00,000 30,00,000 1,00,000 |
20,50,000 54,50,000 |
|
Work’s Cost Add: Office and Administrative
Overheads: Salary of Managing Director Depreciation of Machines (Office) Misc. Office expenses Director Fees Office salaries |
1,00,000 1,00,000 1,00,000 2,00,000 10,00,000 |
75,00,000 15,00,000 |
|
Cost of production Add: Selling & Distributive
Overheads: Advertising and Publicity Commission paid on sales Commission paid to foreign buyers Packaging and forwarding Expenditure of sales depot Marketing expenses out |
10,00,000 10,00,000 1,00,000 2,00,000 4,00,000 1,00,000 |
90,00,000 28,00,000 |
|
Cost of Sales Add: Profit margin (20% on paid up capital which is Rs.
1,00,00,000) |
1,18,00,000 20,00,000 |
|
|
Expected Sales Less: Sales to government (10, 00,
000 mtrs) |
10,00,000 |
1,38,00,000 40,00,000 |
|
Expected sales in open market (10,
00, 000 mtrs) |
98,00,000 |
Working Note : Estimated selling price
per unit for the open market = (expected sales in open market/ no. of units to
be sold in open market) = 98,00,000/10,00,000
Solution of Problem
No. 1 5
Cost Sheet of
Product A
|
PARTICULARS |
AMOUNT |
AMOUNT |
|
Materials used in manufacturing Primary packing material Freight on materials purchased |
60,000 10,000 5,000 |
75,000 |
|
(a) Raw Material Consumed during the
year Add: Direct Labour |
75,000 10,000 |
|
|
(b) Prime Cost Add: Factory Overheads: Material used in the factory Labour required to factory
supervision Indirect Expenses Depreciation on Factory Building |
750 2,000 1,000 1,750 |
85,000 5,500 |
|
(c) Work’s Cost Add: Office and administrative
Overheads: Materials Administrative Expenses Depreciation on office Building |
1,250 1,250 750 |
90,500 3,220 |
|
(d) Cost of Production Add: Selling and Distributive
Overheads: Selling expenses Material used in selling price Advertisement |
3,500 1,500 1,250 |
93,750 6,250 |
|
(e) Total Cost Add: Profit @ 20% on selling price
[Note – 1] |
1,00,000 25,000 |
|
|
Sales |
1,25,000 |
Working Note: Since profit is 20%
sales, therefore required profit is = 1,00,000 * 20/80 = 25,000
Solution of Problem
No. 1 6
Cost Sheet of
Vindhyachal Industries
For the year
ended on 31st December, 2012
|
PARTICULARS |
UNIT |
AMOUNT |
|
Opening of Raw Material Add: Purchases of Raw material [Note
– 1] Freight on Raw Material purchased |
11,620 88,610 5,570 |
|
|
Less: Closing Stock of Raw Material |
1,05,800 9,640 |
|
|
(a) Raw Material Consumed during the
year Add: Direct Labour |
96,160 32,640 |
|
|
(b) Prime Cost Add: Factory Overheads: Indirect Labour Other Factory Expenses Indirect materials |
1,28,800 12,160 31,730 21,390 |
|
|
(c) Factory cost incurred Add: Opening Stock of
work-in-progress Less: Closing Stock of
work-in-progress |
1,94,080 5,740 7,820 |
|
|
(d) Factory Cost or Cost of
Production Add: Opening Stock of finished goods
[12 x 500] Less: Closing stock of finished
goods [12 x 1,500] |
16,000 500 1,500 |
1,92,000 6,000 18,000 |
|
(e) Cost of goods sold Add: Profit |
15,000 |
1,80,000 1,80,000 |
|
(f) Sales |
15,000 |
3,60,000 |
Working Note:
Note – 1: Calculation of Purchases:
|
PARTICULARS |
AMOUNT |
|
Factory cost incurred Less: Factory Overheads: Indirect Labour Other Factory Expenses Indirect materials |
1,94,080 12,160 31,730 21,390 |
|
Less: Direct Labour |
1,28,800 32,640 |
|
Less: Opening Stock of Raw Materials Add: Closing Stock of Raw Materials Less: Freight on Raw Material
Purchased |
96,160 11,620 9,640 5,510 |
|
Purchase of Raw Materials |
88,610 |
Solution of Problem
No. 1 7
Cost Sheet of
Adarsh Manufacturing Company
For the month of
April, 2012
|
PARTICULARS |
AMOUNT |
|
Opening Stock of Raw Materials Add: Purchases [Note – 1] Less: Closing Stock of Raw Materials |
8,000 36,500 10,600 |
|
(a) Raw Materials during the year Add: Wages |
33,900 17,500 |
|
(b) Prime Cost Add: Factory Overheads: |
51,400 10,000 |
|
(c) Work’s Cost incurred Add: Opening Stock of
work-in-progress Less: Closing Stock of
work-in-progress |
61,400 10,500 14,500 |
|
(d) Work’s Cost Add: Office and administrative
Overheads: |
57,400 2,500 |
|
(e) Cost of Production Add: Opening Stock of finished goods Less: Closing Stock of finished
goods |
59,900 17,600 19,000 |
|
(f) Cost of goods Sold Add: Selling and Distributive
Overheads: |
58,500 3,500 |
|
(g) Cost of Sales (h) Profit |
62,000 13,000 |
|
Sales |
75,000 |
Working Notes:
Note – 1: Calculation of Purchases of
Raw Material
|
PARTICULARS |
AMOUNT |
|
Cost of goods sold Less: Opening Stock of finished
goods Add: Closing Stock of finished goods |
56,000 17,600 19,000 |
|
Less: Opening Stock of
work-in-progress Add: Closing Stock of
work-in-progress |
57,400 10,500 14,500 |
|
Less: Works/Factory Overheads
(17,500*100/175) |
61,400 10,000 |
|
Less: Direct Labour |
51,400 17,500 |
|
Less: Opening Stock of Raw Materials Add: Closing Stock of Raw Materials |
32,900 8,000 10,600 |
|
Purchase of Raw Materials |
36,500 |
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