OF

COST SHEET PRESENTED BY CHANDAN JAGTAP NILESH GHADGE SACHIN METHREE

COST & COST ACCOUNTING

COST An amount that has to be paid or given up in order to get something
COSTING System of computing cost of production or of running a business, by allocating expenditure to various stages of production or to different operations of a firm COST ACCOUNTING A method of accounting in which all costs incurred in carrying out an activity or accomplishing a purpose are collected, classified, and recorded. This data is then summarized and analyzed to arrive at a selling price, or to determine where savings are possible

OBJECTIVES OF COST ACCOUNTING

Ascertainment of Cost Determination of selling price Cost control and cost reduction Ascertaining the profit of each activity Assisting management in decision making

COST SHEET
PRIME COST FACTORY COST

COST OF PRODUCTION
COST OF SALE SALE

COST SHEET
DATA DISTRIBUTION
PRIME COST FACTORY COST COST OF PRODUCTION COST OF GOODS

COS

DIRECT

INDIRECT MATR WAGES F.RENT F.POWER

ADMIN OVERHEADS

S&D OVERHEADS PROFIT SALES

MATERIAL WAGES EXP

ADVT OFF RENT TRAVL EXP GEN. CHARG SALESMAN SALARY

GEETA INDUSTRY
Established at Ambarnath in year 2000

Geeta industries manufacture a comprehensive range of overhead materials handling equipments used in almost all industries.
A wide range of cranes for various applications. 1) E.O.T. Cranes up to 100 tonnes 2) Electric Hoist up to 10 tonnes

OBJECTIVES OF GEETA INDUSTRIES

Maximize the sales of revenue Maximize the firms growth rate Maximization of managers utility function Making satisfactory rate of profit Long run survival of the firm

PRODUCTS OF GEETA INDUSTRY

EOT Crane (Electric Overhead Travelling ) Under Slung Goliath/Semi-Goliath Crane Moving Type Cantilever Crane Rail Mounted Crane

COST SHEET OF GEETA INDUSTRY Statement of Cost Sheet for the year ended 31 December 2011

Particular
Materials Consumed

Amt (Rs)

Amt (Rs)

Opening stock of material

Add: Purchases of Ram material Carriage on purchases

220000
285000 70150 575150

Less: Closing stock of Raw material

150000 425150

Add: Direct wages Prime Cost

250000 675150

Add: Factory Overheads Drawing House salary 60500

Repairs to plant and machinery Factory rent

Depreciation of Plant and Machinery Factory Gas and Water Managers salary Factory cost / Work Cost ADD: ADMINSTRATION OVERHEADS Counting HOUSE SALARIES

55000 80000
75000 25000 135000 430500 1105650

26000

Office Rent Depreciation on furniture

Directors Fees

20000 35000
22000

Directors Fees

22000

Office gas and water

Managers salary Generals Expenses Cost of Production

10500
28500 18000 160000 1265650

Add: Selling and Distribution expenses Carriage outward 42000 Bad written off Travelling expenses Travelers Salary Cost of Sales 40000 43500 70000 195500 1461150

Profit
Sales

850000
2311150

COST SHEET ANALYSIS

The company is producing 100000 units of ice cream at Rs. 74.05 for which the total cost incurred is Rs. 7405000 and the total sales is Rs. 9256250 which implies that that the profit being made is Rs. 1851250. The company is producing a single cup of ice cream at Rs. 92.5625 which includes the cost of a cup ice cream at Rs. 74.05 which again implies that the profit of Rs. 18.5125 is earned on a single unit of Amul ice cream. Since the company is earning some percentage of profit above the cost, it means a slight increase in the cost will not have too much of an effect on the profit since there is a large margin of safety.

THANK YOU