Specimen OF COST Sheet AND Problems-UNIT-1 COST Sheet PDF

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SPECIMEN OF COST SHEET Cost Sheet for the period_________________ Production -------------- Unit Total Cost Rs.

Direct Material Consumed: Opening Stores Add:Purchases Less:Closing Stock Cost of Drawings Direct Expenses Primary Packing Materials PRIME COST Add: Works/ Factory Overheads Indirect Materials Indirect Wages Factory Rent and Rates Factory Lighting and Heating Power and Fuel Repairs and Maintenance Drawing Office Expenses Research and Experiment cost Depreciation of Factory Plant Works Stationery Insurance of Factory Works Managers Salary Works Manager s Salary WORKS COST /FACTORY COST/MANUFACTURING COST Add: Office and Administration Overheads Office salaries Office Rent and Rates Cleaning Light and Heating Telephone and Postages Printing and Stationery Depreciation of Office Furniture Depreciation of office Equipment Insurance Legal Expenses COST OF PRODUCTION

Cost Per unit Rs.

Add: Selling and Distribution Overheads Advertising Salesmen Salaries Samples and Free gifts Sales Office rent Sales Promotion Expenses Packing and Demonstration Showroom Rent and Rates Commission Travelling Expenses Warehouse Rent and Rates Repair of Delivery vans Carriage freight Outwards etc. COST OF SALES Add:Profit SELLING PRICE or SALES

Unit-1 -COST SHEET Problems 1.Calculate Prime Cost, Factory Cost, Cost of Production, Cost of Sales and Profit Direct Materials - Rs.10,000 Direct Labour

- Rs.4,000

Direct Expenses – Rs.500 Factory Expenses –Rs.1,500 Administrative Expenses – Rs.1,000 Selling Expenses – Rs.300 Sales – Rs.20,000 2.During the year 2008, X Ltd, produced 50,000 units of a product. The following were the expenses. Stock of raw materials on 1.1.2008 – Rs.10,000 Stock of raw materials on 31.12.2008 – Rs.20,000 Purchases –Rs.1,60,000 Direct Wages –Rs. 75,000 Direct Expenses – Rs.25,000 Factory Expenses –Rs.37,500 Office Expenses – Rs.62,500 Selling Expenses – Rs.25,000 You are required to prepare a cost sheet showing cost per unit and total cost at each stage.

3.You are required to compile a statement showing cost and profit from the information given, showing clearly 1.Material consumed 2.Prime cost 3.Works cost 4.Cost of Production 5.Cost of Sales 6.Profit 7.Sales. Materials purchased –Rs.2,00,000 Wages- Rs.1,00,000 Direct Expenses –Rs.20,000 Opening Stock of Raw Materials – Rs.40,000 Closing stock of Materials – Rs.60,000 Factory overhead is absorbed at 20% on wages. Administration overhead is 25% on the works cost. Selling and Distribution overheads are 20% on the cost of production. Profit is 20% on sales. 4.Prepare a cost sheet from the following data Direct Materials Consumed Direct Wages paid Chargeable Expenses Indirect Materials: Used in factory Used in office Used in selling Used in Distribution Indirect Labour: In factory In office In selling In Distribution Indirect Expenses: Relating to Factory Relating to office Relating to selling

50,000 40,000 10,000 8,000 12,000 6,000 4,000 ----------

30,000

15,000 20,000 18,000 12,000 ---------

65,000

6,000 3,000 1,000 ----------

10,000

5.Calculate Prime cost, Factory cost, Cost of Production, Cost of Sales and Profit from the following particulars Direct Materials-Rs.1,00,000

Depreciation:

Direct Wages –Rs.30,000

Factory plant –Rs.500

Wagges of Foreman –Rs.2,500

Office premises-Rs.1,250

Electric power-Rs.500

Consumable Stores-2,500

Lighting: Factory –Rs.1,500

Managers Salary-Rs.5,000

Office –Rs.500

Directors Fees-Rs.1,250

Storekeepers wages – Rs.1,000

Office stationery-Rs.500

Oil and water Rs.500

Telephone charges –Rs.125

Rent: Factory- Rs.5,000

Postage &Telegrams –Rs.250

Office- Rs.2,500

Salesmens Salaries-Rs.1,250

Repairs and Renewals:

Travelling ExpensesRs,500

Factory plant –Rs.3,500

Advertising –Rs.1,250

Office premises-Rs.500

Warehouse charges-Rs- 500

Transfer to Reserves Rs.1,000

Sales- Rs.1,89,500

Discount on shares written off –Rs.500

Carriage outward –Rs.375

Dividend-Rs.2,000

Income Tax-Rs.10,000

6.Calculate cost of Raw materials consumed from the following data Opening stock of Raw materials Rs.25,000

Closing stock of Raw materials Rs. 32,000 Purchase of Raw Materials Rs.1,50,000 Carriage on purchase Rs.1,500 Sale of normal scrap of raw materials Rs.4,500 7.Prepare a statement of cost giving the following information 1.Prime cost 2.Works cost 3.Cost of production4.Cost of sales and 5.Profit Raw materials consumed Indirect Materials Wages traceable to jobs Wages paid to maintenance worker Lubricating oil Consumable stores Repairs to plant & Machinery Repairs to office Building Postage and Telegram Audit fees Directors fees Legal Expenses General Expenses Gas &Water Advertising Packing Charges Managers salary (2/3 rd for factory 1/3 rd for office) Interest received Loss on sale of plant Payment of sales tax Travelling expenses &commission Sales

40,000 9,000 15,000 7,500 3,750 4,250 5,100 1,500 1,200 2,800 6,400 3,600 1,250 750 4,900 2,200 12,000 1,900 4,000 3,100 500 1,50,000

8.In a factory two types of fans are produced namely,Popular and Orient. Ascertain the cost and profit per unit sold from the following particulars Popular Rs.

Orient Rs.

Material

8,200

9,450

Labour

4,450

4,900

Works overhead is 60% of labour and Office overhead is 20% on work cost.The selling expenses per fan sold is Re.1.The selling price of Popular fan is Rs.275 and Orient fan is Rs.400. 40 units of Popular and 50 units of Orient are sold.There is no opening or closing stock. 9.The following data relate to the manufacture of a product during the month of April. Raw materials consumed Rs.80,000 Direct Wages Rs.48,000 Machine hours worked Rs.8,000 Machine hour rate Rs.4 Office overhead 10% on works cost Selling overhead Rs.1.50 per unit Units produced Rs.4,000 Units sold 3,600 at Rs.50 each Prepare a cost sheet and show 1.Cost per unit

2.Profit for the period.

10.From the details given below ,prepare a comparative cost sheet for the first and second half of the year 2010,showing cost per unit in each case ,at all stages.

Particulars

Direct Materials Consumed Wages Chargeable Expenses Depreciation of Factory Machine Indirect Wages in Factory Rent: Factory Office Repairs: Factory Office Sundry office Expenses Output during the period in units

Half Year Ended 30.6.2010

31.12.2010

50,000 60,000 10,000 16,000 20,000

70,000 80,000 12,000 20,000 30,000

5,000 8,000

4,000 8,000

6,000 9,000 16,000 20,000 units

4,000 2,000 20,000 25,000 units

11.From the following information prepare a cost sheet for the month of Dec 1985. Stock on hand-1st Dec 1985:Raw materials Finished goods st Stock on hand- 31 Dec.1985:Raw materials Finished goods Purchase of raw materials Carriage on purchasesd Work-in-progress 1.12.85 at work cost Work-in –progress 31.12.85 at work cost Sale of finished goods Direct Wages Non productive wages Direct Expenses Factory overheads Administrative overheads Selling and distribution overheads

25,000 17,300 26,200 15,700 21,900 1,100 8,200 9,100 72,300 17,200 800 1,200 8,300 3,200 4,200

Unit -I TENDERS AND QUOTATION Problem No -1 The accounts of a machine manufacturing company disclose the following information for six months ending 31 st December 1982. Materials used

1,50,000

Direct Wages

1,20,000

Factory overheads

30,000

Administrative overheads

15,000

Prepare cost sheet for the half year and calculate the price which the company should quote for the manufacture of a machine requiring materials valued at Rs.1,250 and expenditure in productive wages Rs. 750 ,so that the price might yield a profit of 20% on the selling price.

Problem No -2 BPL Television Company find that in 2008, the cost to manufacture 200 T.V. Sets was Rs.6,16,000 which it sold at Rs.4,000 each cost was made up of: Materials Rs.2,00,000 Direct Wages Rs.3,00,000 Factory Expenses Rs.60,000 Office Expenses Rs.56,000. For 2009, it estimates that 1. Each Television will require materials of the value of Rs.1,000 and wages Rs.1,500. 2. Absorb factory expenses on the basis of direct wages 3. Absorb office expenses on the basis of works cost. Prepare a statement showing the profit it should make per unit if it enhances the price of television by Rs.80

Problem No-3 A Company has received an enquiry for the supply of 5000 steel pipes. The costs are estimated as follows: Raw materials 1,00,000 Kgs at Rs.1.00 per kg. Direct wages 10,000 hours at Rs.4.00 per hour. Variable overheads : Factory Rs.2.40 per labour hour Selling and Distribution Rs.16,000. Fixed overheads :

Factory Rs.6,000 Selling and Distribution Rs.14,000.

Prepare a statement showing the price to be quoted which will result in a profit of 20% on selling price. Problem No-4 The following particulars relate to the manufacture of Electric Fans for a period of 3 months ending 31.3.2008.

Completed stock on 1.1.2008

Nil

Completed stock on 31.3.2008

30,000

Stock of raw materials 1.1.2008

5,000

Stock of raw materials 31.3.2008

3,500

Direct wages

74,000

Factory overhead

8,000

Administration overhead

4,000

Purchase of raw materials

32,500

Sales

1,12,500

The number of fans manufactured during the month was 2,000.Prepare a statement showing the cost per fan and the price to be quoted for 750 fans to realise the same percentage of profit as was realised during the 3 months referred to above assuming the same condition....