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Add:
Add:
Productive Labour
Add:
Outstanding labour
Add:
Prime cost
Add:
Factory overheads
Add:
Factory cost
unit sold.
Total cost
Rs.
Unit
Cost
Rs.
Add:
Office overheads
Cost of Production
Add:
Add:
Total cost
Add
Profit
Less
Loss
Sales
Factory
Office
Selling &
distribution
As on 1-4-2008
As on 31-3-2009
Raw materials
75,000
86,000
Work-in-progress
1,20,000
75,000
Finished stock
44,000
21,000
Underwriting commission
Purchase of raw material
Selling overheads
Drawing Office salaries
12,000
1,58,000
23,000
5,600
Productive Labour
36,700
Audit fees
13,900
Establishment on cost
36,000
4,300
6,78,800
24,000
12,700
Wages outstanding
54,000
3,000
12,800
Add:
unit sold.
Total cost Unit
Rs. Cost
Rs.
75,000
1,58,000
3,000
86,000
0
Add:
Productive Labour
36,700
Add:
Outstanding wages
54,000
Add:
12,700
Prime cost
Add:
Factory overheads
Add:
1,50,000
2,53,400
29,100
1,20,000
75,000
Factory cost
3,27,500
Add:
Office overheads
Cost of Production
Add:
54,700
3,82,200
44,000
21,000
4,05,200
Add:
Total cost
4,41,000
Add
Profit
2,37,800
Less
Loss
Sales
35,800
6,78,800
Factory
Office
Selling &
Overheads Overheads distribution
Overheads
Selling overheads
Drawing office salaries
23,000
5,600
Audit fees
13,900
Establishment on cost
36,000
4,300
19,200
4,800
Distribution on cost
Total
12,800
29,100
54,700
35,800
Problems
Q.2) The expenditure incurred in the manufacturing and
selling of product A for the three months ended 31st march
2008 is given as below:
Rs.
Direct material cost
30,000
Engineers fees
1,000
7,000
Wages payable
2,000
Office salary
Trade discount
5,000
500
Direct expenses
4,000
Haulage
3,000
General on cost
1,000
Catalogue expenses
1,500
13,000
Time-keeping expenses
2,000
Electricity charges
2,000
Donations
1,000
Tendering expenses
1,000
Commission on sales
2,500
900
Prepare cost sheet of XYZ Ltd., Pune, showing the cost of each
element, the total cost per ton and the profits if selling price is
Rs. 120 per ton.
2,30,000
3,000
Operating labour
32,000
Wages of foreman
44,500
Direct expenses
Stock keeper wages
Sales cash and credit
3,900
40,000
100
Commission to partner
9,000
Electric power
1,000
Salary to partner
2,000
Consumable stores
Direct wages payable
500
1,00,000
Lighting
i)Factory plant
200
650
Carriage outward
1,000
Rent
i)factory plant
1,000
ii) machinery
2,000
3,000
iv) warehouse
4,000
5,500
Advertising
3,450
Depreciation
i) office building
2,000
ii) machinery
4,280
Traveling expenses
6,000
12,000
Salesmans commission
22,000
Directors fees
40,000
5,200
Telephone charges
6,500
Postage
3,320
Bad debts
2,900
0.
Q. 4) from the following particulars of Maharasttra Traders,
prepare a cost sheet for the year 2008-2009
Sale of scrap of raw material
500
Works overheads
45,000
40,000
71,500
4,500
5,500
1,500
1,50,000
32,500
2,500
15,000
Direct wages
95,500
Opening stock:
Raw materials:
Work in
progress:
Finished goods:
(1000 units)
Purchase of raw
material
Direct labour
Direct power
Indirect power
Indirect material
Other factory
expenses
40,000
15,000
60,000
15,000
18,000
January 1
January 31
Rs. 8,000
Rs. 8,600
8,000
12,000
14,000
18,000
Rs.
847 Manufacturing
? overhead
Cost of goods
94 manufactured
Cost of goods sold
389 Cost of goods
available for sale
Rs.
?
1,878
?
1,949
Find out the missing items and the statement of cost for
March 2009.
Q. 8) Raw materials X costing Rs. 100 per KG and Y costing
Rs. 60 per KG are mixed in equal proportions for making
product A. The loss of materials in processing works out to
25 % of the output. The production expenses are allocated at
50 % of direct material cost. The end product is priced with a
margin of 33 % over the total cost. Material Y is not easily
available and substitute material Z has been found for y
costing Rs. 50 per KG. It is required to keep the proportion of
this substitute material in the mixture as low as possible and
the same time maintain the selling price of the end product at
existing levels and ensure the same quantum of profit as at
present.
Q.9) The following details are available from the books of Ram
products Ltd. for the year ending 31st March 2007:
Direct wages
12,000
Purchase of
materials
12,000
Other materials
8,640
Wages of foremen
and stores keeper
6,000
Cost of research
and experiments
72,000
36,000
1,20,000
28,800
97,500
22,000
5,000
Carriage
Rs.
60,000
Wages
Rs. 7, 00,000
Closing stock of Raw materials
Rs.
75,000
1. Find out the works cost & the total cost of motor cars,
percentage the works overheads bears to wages and
percentage that establishment charges bears to works
cost.
2. Work out what price a co should quote for a motor car,
which is estimated will require on expenditure of Rs.5,500
in raw material and Rs. 4,000 in wages, so that it would
yield a profit of 25% on quotation price.