Professional Documents
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Q1. From the accounts of M/s Avanti Enterprises, the following details have been extracted for the Quarter
ending December 31, 2013
Particulars
Rs
2,70,000
3,00,000
Purchases of materials
12,48,000
Direct wages
3,57,600
Direct expenses
1,20,000
Indirect Wages
24,000
60,000
Carriage Inward
48,000
Carriage Outward
37,500
Managers Salary
72,000
General Charges
37,200
20,000
Commission on sales
28,000
Fuel
96,000
72,000
Directors Fees
36,000
63,000
18,000
9,600
45,000
Depreciation on furniture
3,600
Salesmans Salaries
50,000
Audit Fees
18,000
1. The managers time is shared between the factory and the office in the ratio of 20:80
2. Carriage outward include Rs 7,500 being carriage inward on Plant & Machinery
3. Selling Price is 120% of the cost price.
Prepare a detailed Cost Sheet for the quarter ending 31st December 2013 and ascertain sales
Q2. The following details are available for the year ending 31/3/2014
Particulars
Rs
Direct Wages
60,000
Purchases of Materials
72,000
Indirect Materials
3,600
Indirect Wages
5,400
Office Salaries
7,200
600
1200
5400
Legal Charges
864
Office rent
1200
Sales ( 9000)
180000
Opening stock
Raw Material
Work in progress
12000
2880
13344
9600
Q4. The State Government granted a license to Sweet Sugar Ltd to manufacture and sell sugar with a stipulation
that 40 % of the output should be sold to the state government at a controlled price of Rs 3,000 per ton and the
balance output can be sold in the open market at any price. Following are the details Sweet Sugar Ltd for the
year ended 31st March 2014.
During the year 3600 tons of Sugarcane was consumed @Rs 1000 per ton.
Direct Labour amounted to Rs 825 per ton of sugar produced.
The details of other expenditure are as follows:
Particulars
Rs
Particulars
Rs
Direct Expenses
1,65,895
Telephone charges
2,61,880
1,06,850
3,80,125
Machine purchased
2,49,600
Machinery Repairs
2,04,180
Commission on sales
1,57,360
Factory Salaries
1,89,325
Carriage Outward
1,13,000
Packing Expenses
1,94,450
Products
A ( Rs )
B ( Rs )
100
120
60
50
40
80
Additional Information:
a. Factory Expenses are charged at 20% of prime cost
b. Office expenses are charged at 25% of works cost
c. 2000 units of product A were produced of which 1500 units were sold and 5000 units of product B were
produced of which 4500 units were sold.
d. Selling expenses are Rs 15 per unit for Product A and Rs 20 per unit of product B.
e. Company charges a profit at 20% on sales for both products.
Prepare a cost sheet showing various elements of cost both in total and cost per unit Also show profit.