Cost Sheet

Q1. From the accounts of M/s Avanti Enterprises, the following details have been extracted for the Quarter
ending December 31, 2013
Particulars

Rs

Stock of materials- Opening

2,70,000

Stock of materials- Closing

3,00,000

Purchases of materials

12,48,000

Direct wages

3,57,600

Direct expenses

1,20,000

Indirect Wages

24,000

Salaries to administrative staff

60,000

Carriage Inward

48,000

Carriage Outward

37,500

Managers Salary

72,000

General Charges

37,200

Legal charges to Criminal Suit

20,000

Commission on sales

28,000

Fuel

96,000

Electricity charges ( Factory)

72,000

Directors Fees

36,000

Repairs to Plant and Machinery

63,000

Rent, Rates and Taxes- factory

18,000

Rent, Rates and Taxes- office

9,600

Depreciation on plant &

machinery

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

Employers contribution to Employees state insurance corporation

600

Printing & Stationery

1200

Power & Fuel

5400

Legal Charges

864

Office rent

1200

Sales ( 9000)

180000

Opening stock
Raw Material
Work in progress

12000
2880

Finished Stock ( 600 units at the rate of Rs 16.25 per unit)

Closing Stock
Raw Material
Work in progress

13344
9600

Finished Stock ( 1200 units )

Value the finished stock at Cost of Production. Prepare a cost sheet

Q3. Doll Ltd started a factory in Navi Mumbai on 1st April, 2013. Following Details are furnished about its
activity during the year ended 31st March 2014.Prepare a cost sheet showing various elements of cost both in
total and cost per unit.
Raw Material Consumed 40,000 units @ Rs 7 per unit
Direct Wages:
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.

Skilled Rs 9 per unit

Unskilled Rs 6 per unit
Royalty ( on raw material consumed ) @ Rs 3 per unit
Works overhead @ Rs 8 per machine hour
Machine Hours worked 25,000
Office Overheads at 1/3rd of Works Cost
Sales Commission @ Rs 4 per unit
Units produced 40,000
Stock of units at the end: 4,000 units to be valued at cost of production per unit
Sale Price is Rs 50 per unit

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

4,20,000 Bank interest

1,65,895

Telephone charges

3,52,695 Factory Electricity

2,61,880

Office computer purchased

2,75,350 Delivery Van Expenses

1,06,850

Factory Rent and insurance

3,54,760 Coal Consumed

3,80,125

Machine purchased

4,25,560 Depreciation on Machinery

2,49,600

Machinery Repairs

98,847 Depreciation on Computer

2,04,180

Commission on sales

3,37,650 Depreciation on Delivery Van

1,57,360

Factory Salaries

2,19,588 Office Salaries

1,89,325

Carriage Outward

1,54,090 Printing & Stationery

1,13,000

Packing Expenses

1,94,450

During the year 2,400 tons of sugar was produced.

The company s profit target for the year for fixing the open market selling price on the basis of cost
sheet is 10 % of its average paid-up capital of Rs 1,42,56,000.
Prepare cost sheet and suggest selling price for open market.
Q5. M/s Vijay Manufacturing Company manufactures two types of products viz. A and B. The information for
the year ended on 31st March 2014 is as under:
Particulars

Products
A ( Rs )

B ( Rs )

Direct Material per unit

100

120

Direct Labour per unit

60

50

Direct Expenses per unit

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.