Q.

1 Following information has been obtained from the records of

left center corporation for the period from June 1 to June 30, 2008.

Cost of raw materials on June 1, 2008 30,000

Purchase of raw materials during the month 4,50,000
Wages paid 2,30,000
Factory overheads 92,000
Cost of work in progress on June 1, 2008 12,000
Cost of raw materials on June 30, 2008 15,000
Cost of stock of finished goods on June 1, 2008 60,000
Cost of stock of finished goods on June 30, 2008 55,000
Selling and distribution overheads 20,000
Sales 9,00,000
Administration overheads 30,000

Prepare a statement of cost.

Q. 2 From the following information, prepare a cost sheet showing the total
cost per ton for the period ended on Sept. 30, 2010.

Raw materials 33,000 Rent and taxes (office) 500

Productive wages 35,000 Water supply 1,200
Direct expenses 3,000 Factory insurance 1,100
Unproductive wages 10,500 Office insurance 500
Factory rent and taxes 2,200 Legal expenses 400
Factory lighting 1,500 Rent of warehouse 300
Factory heating 4,400 Depreciation--
Motive power Haulage 3,000 Plant and machinery 2,000
Director’s fees (works) 1,000 Office building 1,000
Directors fees (office) 2,000 Delivery vans 200
Factory cleaning 500 Bad debt 100
Sundry office expenses 200 Advertising 300
Expenses 800 Sales department salaries 1,500
Factory stationery 750 Up keeping of delivery vans 700
Office stationery 900 Bank charges 50
Loose tools written off 600 Commission on sales 1,500

The total output for the period has been 10000 tons.
Q.3 Form the following particulars, prepare a cost statement :

Rs.

Stock, 1-10-2008 :

Raw materials 30,500

Finished goods 20,400

Stock, 31-10-2008 :

Raw materials 48,500

Finished goods 10,000

Purchase of raw materials 25,000

Work- in – progress, 1-10-2008 8,000

Work- in – progress,3 1-10-2008 9,000

Sales 95,000

Direct wages 20,400

Factory expenses 10,500

Office expenses 5,400

Selling expenses 3,800

Distribution expense 2,500

Also calculate the percentage of works expenses to direct wages and

the percentage of office expenses to works cost.
Q. 4 The following extracts of costing information relate to
commodity X for the year ending 31-12-2009.

Rs.

Purchases of raw materials 6,000

Direct wages 5,000

Rent, rates and insurance 2,000

Carriage inwards 100

Stock (1-1-2009) :

Raw materials 1,000

Finished products---200 tonnes 800

Stock (31-12-2009) :

Raw materials 1,100

Finished products---400 tonnes

-

Cost of factory supervision 400

Sale of finished products 15,000

A advertising and selling cost is 40 paise per tone sold. 3,000

tonnes of the commodity were sold during the year. Prepare a
cost Sheet.
Q. 5 Mr.Gopal furnishes the following data relating to the manufacture of a standard
product during the month of April 2008 :
Raw materials consumed Rs.15.000
Direct labour charges Rs.9,000
Machine hour worked 900
Machine hour rate Rs.5
Administration overheads 20% on works cost
Selling overheads Re.0.50 per unit
Units produced 17,100
Units sold 16,000 at Rs. 4 per unit
You are required to prepare a cost sheet from the above, showing :
(a) The cost per unit,

(b) Cost per unit sold and profit for the period. .

Q. No. 6 A Manufacturing Company has an installed capacity of 1,50,000 units per annum.
Its cost structure is given below:

Rs.
(i) Variable cost per unit
Materials 10
Labour (subject to a minimum of Rs. 1,00,000 per month) 10
Overheads 4
(ii) Fixed overheads per annum 1,92,300
(iii) Semi-variable overheads per annum at 75%
capacity (It will increase by Rs. 4,000 per
annum for increase of every 5% of the
capacity utilisation or any part thereof) 60,000
The capacity utilisation for the next year is budgeted at 75% for first three months, 80%
for the next six months and 90% for the remaining three months.
Required:
If the company is planning to have a profit of 20% on the selling price, calculate the
selling price per unit for the next year.