Cost Sheet Practical Problems

Q.1: RST Ltd. has furnished the following information from the financial books for the year
ended 31
st
March, 2012.
Dr. Trading and Profit and Loss A/c Cr.
Particulars Rs. Particulars Rs.
To Opening Stock
(Finished Goods 2500 units)
To Raw Materials
To Direct Wages
To Factory Expenses
To Office and Admin. Exp.
To Selling and Dist. Exp.
To Goodwill w/off
To Loss on Sale of Invt.
2,50,000

20,80,000
15,15,000
10,18,000
8,45,000
7,00,000
60,000
1,00,000
By Sales (47,500 units)
By Closing Stock
(Finished Goods 5000 units)
By Commission Allowed
By Bad Debts Received
By Net Loss
59,85,000
5,00,000

35,000
12,000
36,000
65,68,000 65,68,000
The following information is revealed from the cost records for the year ended 31
st
March,
2012:
(a) Raw materials consumption is Rs. 40 per unit of production.
(b) Direct wages are 70% of direct materials.
(c) Factory overheads are recovered @ 50% of Direct Materials.
(d) Administrative overheads are taken @ 20% of Works cost.
(e) Selling and Distribution overheads are recovered Rs. 15 per unit.
(f) Opening stock of finished goods is valued at Rs. 101.80 per unit.
(g) Closing stock of finished goods is to be valued at cost of production.
(h) Selling price is recorded at Rs. 125 per unit.
Prepare: (i) Detailed Cost Statement showing total cost, per unit cost and profit.

Q.2: From the books of accounts of Viburaj Enterprises the following details have been
extracted for the year ended 31
st
March, 2011.
Particulars Rs.
Corporate Manager Salary
Rent of Plant
Sale of detective Raw Material
Hire Charges for special equipment
Office Rent
Purchase of Raw Materials
Carriage Inwards
Indirect Materials
Office Expenses
Insurance premium for stock of Raw Materials
Insurance premium for computer
Insurance premium for delivery van
Opening stock of Raw Material
Closing stock of Raw Material
Sale of factory scrap
Carriage Outward
11,10,000
1,27,500
8,500
57,000
84,700
4,85,230
24,325
2,35,600
41,000
22,600
12,700
11,500
78,175
76,230
16,800
1,10,000
Depreciation on Delivery Van
Depreciation on Computers
Salaries to office staff
Salaries to drawing and designing department
Opening work in progress
Closing work in progress
Brand Ambassador Remuneration
Direct Wages Skilled Labour
Direct Wages Unskilled Labour
Cost of Catalogue Printing
Opening Stock of Finished Goods
Closing Stock of Finished Goods
Repairs to Delivery Van
28,000
87,300
1,15,300
1,85,700
94,300
96,500
4,80,000
3,15,500
1,24,500
57,500
6,40,000
7,50,000
35,500
Prepare: (i) The corporate managers salary to be apportioned between the factory and
the office in the ratio of 1:9.
(ii) Selling price is 120% of Cost Price.
From the above details prepare Cost Sheet showing various elements of cost.

Q.3:
Dr. Trading and Profit & Loss A/c of M.K & Co. for the year ended 31
st
March, 2010 Cr.
Particulars Rs. Particulars Rs.
To Materials Consumed
To Direct Wages
To Factory Overheads
To Gross Profit c/d

To Office Rent
To General Expenses
To Management Expenses
To Goodwill w/off
To Advertisement
To Salesmen Commission
To Interest on Loan
To Net Profit c/d
3,75,000
2,25,000
3,00,000
6,00,000
By Sales (15,000 units)




By Gross Profit b/d
By Dividend Received
By Interest on Investment
15,00,000
15,00,000 15,00,000
90,000
75,000
60,000
22,500
1,31,000
1,50,000
14,500
76,750
6,00,000
13,500
6,500
6,20,000 6,20,000
For the year ending 31
st
March, 2011 following estimates have been made:
(a) Production and sales units will be doubled.
(b) Direct Materials cost per unit will rise by 20%.
(c) Direct Wages per unit will rise by 40%.
(d) Of the factory overheads, Rs. 1, 50,000 are fixed and would remain at the same level
but variable thereof would be in same proportion to direct wages as in 2009-10.
(e)