Cost Sheet - Problems A specimen format of a cost sheet is given as under: A Particulars Materials Consumed Purchases Add: Opening

stock of raw material Expenses on purchases Less: Closing stock of raw material Direct Material Consumed Direct Labour (Wages) Direct Expenses Prime Cost (A + B + C) Factory/Works Overheads Add: Opening stock of work-in-progress Less: Closing stock of work-in-progress Works/Factory Cost (D + E) Office and administration overheads Total cost of production (F + G) Add: Opening stock of finished goods Cost of goods available for sale Less: Closing stock of finished goods Cost of goods sold Selling and distribution overheads Total Cost (I + J) = Cost of Sales Profit/Loss (Balancing Figure) Sales (k + L) Total (Rs.)

B C D E F G H

I J K L M

Problem-1 Calculate prime cost from the following particulars for a production unit Particulars Cost of material purchased Opening stock of material Closing stock of material Wages paid Rent of hire of a special machine for production Rs. 30,000 6,000 4,000 3,000 5,000

Problem-2 Calculate factory cost from the following particulars: Particulars Material consumed Productive wages Direct expenses Consumable stores Oil grease/Lubricating Salary of a factory manager Unproductive wages Factory rent Repair and depreciation on machine Problem-3 From the following information, calculate the works cost. Particulars Direct Material Direct Labour Direct Expenses Factory Overheads Work-in-progress: Opening stock Work-in-progress: Closing stock Rs. 80,000 22,000 5,000 12,000 13,000 7,000 Rs. 60,000 20,000 5,000 2,000 500 6,000 1,000 2,000 600

Problem-4 From the following information, calculate the total cost of production Particulars Direct Material Direct Labour Direct Expenses Factory Overheads Office and Administration Overheads Rs. 90,000 32,000 9,000 25,000 18,000

Problem-5 From the following information, calculate the cost of goods sold. Particulars Total cost of production Opening stock of finished goods Closing stock of finished goods Rs. 1,22,000 12,000 16,000

Problem-6 From the following information, calculate the total cost. Particulars Direct Material Direct Labour Direct Expenses Factory Overheads Office and Administration Overheads Selling and Distribution Overheads Rs. 1,60,000 52,000 19,000 45,000 28,000 33,000

Problem-7 From the following information, calculate the value of goods sold. Particulars Total cost of production Opening stock of finished goods Closing stock of finished goods Selling and Distribution Overheads Profit Rs. 1,45,000 22,000 6,000 25,000 22,000

Problem-8 From the following information, prepare a cost sheet for period ended on 31st March 2010. Particulars Opening stock of raw material Purchases of raw material Closing stock of raw material Direct wages Direct expenses Factory overheads Office and administration overheads Selling and distribution overheads Cost of opening stock of finished goods Cost of closing stock of finished goods Profit on cost 20% Rs. 12,500 1,36,000 8,500 54,000 12,000 100% of direct wages 20% of works cost 26,000 12,000 15,000

Problem-9 Following information has been obtained from the records of a manufacturing company: 1-1-2005 Rs. 50,000 1,00,000 13,000 31-12-2005 Rs. 60,000 1,50,000 16,000

Stock of Raw Materials Stock of Finished Goods Stock of Work-in-Progress Transactions during the year: Particulars Indirect Labour Lubricants Insurance on Plant Purchase of Raw Materials Sales Commission Salaries of Salesmen Administration Expenses Rs. 60,000 12,000 4,000 3,00,000 72,000 90,000

Particulars Carriage Outward Power Direct Labour Depreciation on Machinery Factory Rent Property Tax on Factory Building 1,50,000 Sales

Rs. 20,000 20,000 2,00,000 40,000 50,000 14,000 10,11,000

Prepare a statement of cost and profit showing (a) Cost of Raw Materials Consumed (b) Prime Cost (c) Factory Cost (d) Cost of Production (e) Cost of Goods Sold (f) Cost of Sales, and (g) Profit.

Problem-10 The following particulars are extracted from the books of a company relating to commodity Alpha for the half-year ending June 30, 2009. Particulars Rs. Purchases of raw material 1,30,000 Direct wages 1,00,000 Rent, rates, insurance and works on cost 45,000 Carriage inwards 1,500 Stock on 1-1-2009 Raw materials 20,000 Finished products (1,600 tonnes) 17,600 Stock on 30-6-2009 Raw materials 25,000 Finished products (3,200 tonnes) 37,600 Work-in-progress on 1-1-2009 4,500 Work-in-progress on 30-6-2009 16,000 Factory supervision 10,000 Sales Finished products 3,00,000 Advertising discount allowed and selling cost at Re.0.50 per tonne sold. 25,000 tonnes of commodity was sold during the period. You are required to ascertain: i. Prime Cost ii. Factory Cost iii. Cost of Sales iv. Profit v. No. of tonnes of the commodity produced.

Problem-11 From the books of accounts of M/s Aryan Enterprises, the following details have been extracted for the year ending March 31, 2010. Particulars Stock of Materials - Opening Stock of Materials Closing Materials purchased during the year Direct wages paid Indirect wages Salaries to Administrative Staff Freights Inward Freights Outward Cash Discounts Allowed Bad Debts Written Off Repairs to Plant and Machinery Rent, Rates and Taxes Factory Rent, Rates and Taxes Office Travelling Expenses Salesmens Salaries and Commission Depreciation Written Off Plant & Machinery Depreciation Written Off Furniture Directors Fees Electricity Charges (Factory) Fuel (for boiler) General Charges Managers Salary Rs. 1,88,000 2,00,000 8,32,000 2,38,400 16,000 40,000 32,000 20,000 14,000 18,800 42,400 12,000 6,400 12,400 33,600 28,400 2,400 24,000 48,000 64,000 24,800 48,000

The managers time is shared between the factory and the office in the ratio of 20:80. From the above details you are required to prepare: (a) Prime Cost, (b) Factory Overhead, (c) Factory Cost, (d) General Overhead, and (e) Total Cost

Problem-12 From the following particulars prepare a Cost Sheet showing the total cost per tonne for the period ended 31st December, 2009. Particulars Raw materials Productive wages Direct expenses Unproductive wages Factory rent and taxes Factory lighting Factory heating Motive power Haulage Directors fee (works) Directors fees (office) Factory cleaning Sundry office expenses Estimating Factory stationery Office stationery Loose tools written off Rs. 33,000 35,000 3,000 10,500 7,500 2,200 1,500 4,400 3,000 1,000 2,000 500 200 800 750 900 600 Particulars Rent and taxes (office) Water supply Factory insurance Office insurance Legal expenses Rent of warehouse Depreciation: Plant and machinery Depreciation: Office building Depreciation: Delivery vans Bad debts Advertising Sales department salaries Upkeeping of delivery vans Bank charges Commission on sales Rs. 500 1,200 1,100 500 400 300 2,000 1,000 200 100 300 1,500 700 50 1,500

Total output for the period has been 10,000 tonnes.