Cost Accounting: Assignment 1

Q.1 M/s Hindustan Inks Ltd. Shave supplied following data:

(Rs in Lacs.)
Opening Stock of raw material 50
Closing Stock of Raw material 76
Raw Material Purchases 150
Direct Wages 160
Direct Expenses 30
Depreciation on Plant and Machinery 3
Depreciation on Office equipment 1
Wages (Indirect) 20
Indirect Material consumption 10
Freight inward. 1
Freight Outward 20
Rent & Taxes (for Factory) 12
Rent & Taxes (for Office) 2
Factory Expenses 10
Office Salaries 50
Remuneration to salesmen 40
Office Expenses 16
Directors expenses 28
Sailing expenses 20
Salesman's traveling expenses 2
Advertisement 5
Advance Tax & Self- Assessment Tax 7
Sales 650
Expenses of the Director's are to be allocated in the Ratio of 40:60:40 between Factory, Office
and Sale; department. The Factory has produced.5, 000 Unites of its Product during the period.
There is no Work in Progress at beginning or at the end of the period. Prepare cost of product
statement and show profit/loss in appropriate.

Q.2 From the following data, Prepare Cost Sheet of Product "P" for Production of 11.000 Units
Rs Rs
Opening Stock of: Carriage towards 7590
Raw Materials 15200 Carriage Outwards 9520
Work in Progress 6800 Direct Wages 45660
Finished Goods (1000 Units) 25600 Indirect Wages 15200
Conveyance to general staff 5620
Purchases of: Traveling to Salesmen 8450
Raw Materials 82800 Free Samples 450
Stores and Spares 4560 Power and Fuel 13200
Water Charges 8600
Salaries Paid to Postage and telephones 6350
Production Department 12600 Printing and Stationary 1240
Administration Department 12300 Depreciation on;
Sales Department 18200 Machinery
Furniture
Closing Stock of: Delivery Vans
Raw Materials 18600 Rent, rates and taxes (50% to 15600
Work in Progress 7500 Production, 30% to Adm and
Finished Goods (1200 Units) ??? 20% to Sales Department)
 Sale of Scrap 2800 Interest Paid 1850
Bad Debits 1400 Commission received 800
The selling price is such to have a profit of 20% on sales

Q.3 The following is extract of the costing information for the year ended 31st March, 19XX [20]
Sales I.96.000
Purchase of raw material 60,000
Direct Wages 60,000
Rent, rate, insurance of factory 21,000
Carriage Inward 1,000
Opening Stock :
Raw Material 10,000 .
Finished Goods (200tons) 12,000 .
Closing Stock:
Raw material 11.000
Finished Goods (400tons) ?
Supervision (factory charges) 3,000
Advertising 4,000
Office Overheads 30,000
Selling Expenses. 8,000
3000 tons of the commodities were produced.
Prepare the cost statement.

Q.4 Following details are obtained from Shree Laximi paints Ltd
Stock of raw material on 01st Apr 95 75000
Stock of raw material on 31st Mar 96 91500
Direct Wages 52500
Sales 251000
Indirect Wages 2750
Work in Progress on 1st April 95 20000
Purchases of the raw 35000
Factory rent & wages 66.000
Factory Lighting 1500
Power & Fuel 3250
Oil wastes etc. 1500
Office Lighting 1760
Miscellaneous factory expenses 1625
Depreciation - Plant & Machinery 6600
Expenses on Purchases 1500
Carriage Outward 2500
Advertising 3500
Office rent, rates and taxes 2500
Salesman salary and commission 6500
Depreciation - office appliances 1200
Salaries of Office staff 18000
Stock of finished goods on 0lst April 1995 54,000
Stock of finished goods on 3lst March 1996 31,000,
Required :"
Prepare the cost sheet for the year ended 31st March, 1996.