Cost Sheet Practical Problems

Q.1: RST Ltd. has furnished the following information from the financial books for the year
ended 31st March, 2012.
Dr.
Trading and Profit and Loss A/c
Cr.
Particulars
Rs.
Particulars
Rs.
To Opening Stock
2,50,000 By Sales (47,500 units)
59,85,000
(Finished Goods 2500 units)
By Closing Stock
5,00,000
To Raw Materials
20,80,000
(Finished Goods 5000 units)
To Direct Wages
15,15,000 By Commission Allowed
35,000
To Factory Expenses
10,18,000 By Bad Debts Received
12,000
To Office and Admin. Exp.
8,45,000 By Net Loss
36,000
To Selling and Dist. Exp.
7,00,000
To Goodwill w/off
60,000
To Loss on Sale of Invt.
1,00,000
65,68,000
65,68,000
st
The following information is revealed from the cost records for the year ended 31 March,
2012:
(a)
Raw materials consumption is Rs. 40 per unit of production.
(b)
Direct wages are 70% of direct materials.
(c)
Factory overheads are recovered @ 50% of Direct Materials.
(d)
Administrative overheads are taken @ 20% of Works cost.
(e)
Selling and Distribution overheads are recovered Rs. 15 per unit.
(f)
Opening stock of finished goods is valued at Rs. 101.80 per unit.
(g)
Closing stock of finished goods is to be valued at cost of production.
(h)
Selling price is recorded at Rs. 125 per unit.
Prepare: (i) Detailed Cost Statement showing total cost, per unit cost and profit.
Q.2: From the books of accounts of Viburaj Enterprises the following details have been
extracted for the year ended 31st March, 2011.
Particulars
Rs.
Corporate Manager Salary
11,10,000
Rent of Plant
1,27,500
Sale of detective Raw Material
8,500
Hire Charges for special equipment
57,000
Office Rent
84,700
Purchase of Raw Materials
4,85,230
Carriage Inwards
24,325
Indirect Materials
2,35,600
Office Expenses
41,000
Insurance premium for stock of Raw Materials
22,600
Insurance premium for computer
12,700
Insurance premium for delivery van
11,500
Opening stock of Raw Material
78,175
Closing stock of Raw Material
76,230
Sale of factory scrap
16,800
Carriage Outward
1,10,000

Depreciation on Delivery Van

28,000
Depreciation on Computers
87,300
Salaries to office staff
1,15,300
Salaries to drawing and designing department
1,85,700
Opening work in progress
94,300
Closing work in progress
96,500
Brand Ambassador Remuneration
4,80,000
Direct Wages Skilled Labour
3,15,500
Direct Wages Unskilled Labour
1,24,500
Cost of Catalogue Printing
57,500
Opening Stock of Finished Goods
6,40,000
Closing Stock of Finished Goods
7,50,000
Repairs to Delivery Van
35,500
Prepare: (i) The corporate managers salary to be apportioned between the factory and
the office in the ratio of 1:9.
(ii) Selling price is 120% of Cost Price.
From the above details prepare Cost Sheet showing various elements of cost.
Q.3:
Dr. Trading and Profit & Loss A/c of M.K & Co. for the year ended 31 st March, 2010 Cr.
Particulars
Rs.
Particulars
Rs.
To Materials Consumed
3,75,000 By Sales (15,000 units)
15,00,000
To Direct Wages
2,25,000
To Factory Overheads
3,00,000
To Gross Profit c/d
6,00,000
15,00,000
15,00,000
90,000 By Gross Profit b/d
6,00,000
To Office Rent
75,000 By Dividend Received
13,500
To General Expenses
60,000 By Interest on Investment
6,500
To Management Expenses
22,500
To Goodwill w/off
1,31,000
To Advertisement
1,50,000
To Salesmen Commission
14,500
To Interest on Loan
76,750
To Net Profit c/d
6,20,000
6,20,000
st
For the year ending 31 March, 2011 following estimates have been made:
(a)Production and sales units will be doubled.
(b)Direct Materials cost per unit will rise by 20%.
(c) Direct Wages per unit will rise by 40%.
(d)Of the factory overheads, Rs. 1, 50,000 are fixed and would remain at the same level
but variable thereof would be in same proportion to direct wages as in 2009-10.
(e)