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UNIT COSTING
SOLUTION TO SELF EVALUATION PROBLEMS
SOLUTION 1
Syams cost sheet for the month of November 2007
(Unit
Produced 10,000)
Cost of Material
Opening Stock
+ Purchase
+ Carriage, Freight, Octroi, Custom
duty, Dock charges on material
5,000
1,00,000
5,000
1,10,000
2,000
1,08,000
4,000
1,04,000
+ Direct Wages
70,000
+ Direct Expenses
30,000
Prime Cost
2,04,000
15,000
Motive Power
10,000
5,000
Depreciation
On Plant and Machinery
2,500
20.40
On Factory Building
1,000
Year 12,000 / 12
Repairs to Machinery
1,000
Indirect Wages
15,000
Haulage
1,000
500
4,000
Factory cleaning
100
55,100
1,000
2,60,100
1,000
2,59,000
2,000
2,61,000
1,000
Factory cost
Add:
Office
Expenses
2,60,100
and
26.01
Administrative
15,000
250
500
Depreciation on Furniture
100
1,000
16,850
2,76,950
27.695
10,000
2,86,950
5,000
2,81,950
24.63
10,000
expenses,
5,000
11,000
delivery
van
750
2%
of
5,639
1,000
33,389
3,15,339
Profit
31,536
Sales
3,46,875
28.667
Tutorial Notes
Student should take in to accounts the period of cost sheet. Here it
is one month. Any expenditure given for a period should be taken
proportionately for the cost sheet period, e.g. Depreciation of
factory, building, royalty etc.
2 Student should note the different ways of giving expenses. When
they are given as percentage or per unit they should be carefully
calculated.
3 Prime cost, factory cost, cost of production are calculated by
dividing the respective cost by the units produced i.e.10,000 But
cost of goods sold and cost of sales are calculated by dividing the
respective cost by unit
Opening stock of finished goods (unit)
2,000
1
+ Unit Produced
10,000
12,000
- Closing stock of finished goods
1,000
Unit sold
11,000
SOLUTION 2
Cost sheet for four weeks ended on 28th November 2007
(Unit
produced19030)
Total cost
Raw Material consumed
Direct wages
Prime cost
+ Factory overhead on basis of Machine
hour i.e.
2,300
x
30
1
100
Works cost
+ Office on cost (10% of works cost)
Cost of production
Opening stock of finished goods
15,000
9,800
24,800
690
25,490
2,549
28,039
Nil
28,039
11,216
16,823
1,142
17,965
4,871
22,836
19,030
11,418
7,612
x 7,612
Unit produce
So when the value of closing stock is not given this value to be
calculated by the above formula. Secondly when machine hours
are given and rate per hour is given then the factory overhead
to be calculated as follows
Factory overheads =Machine hours worked x Rate per hour.
SOLUTION 3
Cost Sheet for the year ending 31-3-2001
(Production 1,200 bicycles)
Cost of Material
Rs.80,000 = Rs.80 per unit
1,000
1,15,200
100
Cost of Wages
1.51.200
100
2,66,400
66,600
Old 2,00,000
Work cost
3,33,000
60,000
10,000
General expenses
20,000
90,000
4,23,000
36,000
4,59,000
51,000
90
Sales
5,10,000
Tutorial Notes
Material and labour are variable cost, so firstly the old rate
calculated. Then the % increase in rate is calculated and new
rate is multiplied by new quantity of production.
The same method is follow whenever there is change in price
level.
In case of manufacturing cost, it is increased in proportion to
increase in the combined cost of material and labour.
So new combined cost is to be divided by the old combined cost
and multiplied by manufacturing cost already given.
In case of other expenses no change. They are taken at old
figures, selling expenses rate is calculated so it is multiplied by
new quantity of production profit so 10% on selling price the
selling price is not given so it is assumed Rs.100 10% of this is
Rs. 10 profit so cost = sales - profit = 100 - 10 = 90 so on 90
cost the profit is 10 the ratio 10 = 1
90 9
SOLUTION 4
Cost sheet for the month of January 2002
10,200)
(Unit produced
Total cost
Per units
18,360
1.80
Cost of material
Opening stock
600
+ Purchase of material
19,270
19,870
1,510
+ wages
19,380
Prime cost
Add works
overhead
on
cost
or
5,916
3,468
2,040
Works cost
on
cost
or
37,740
3.70
11,424
1.12
49,164
4.82
works
Coal consumed
Add Office
overheads
1.90-
office
2,448
0.24
1,836
0.18
53,448
5.24
Cost of production
Add Closing stock of finished goods
3,500
stock
of
56,948
finished
5.3222
3,726
53,222
5.3222
6,778
0.6778
60,000
6.0000
Note 1
When units produced are not given but the
units of raw materials are given. Then units produced are
calculating as under.
Units
Opening starch materials
+ Purchase of raw materials
500
10,000
10,500
300
10,200
500
10,200
10,700
700
10,000
3.
The cost of goods sold per unit be calculate by dividing
the cost of goods sold by unit sold i.e. 10,000 so also profit per
unit other per unit costs are to calculate by dividing the cost by
unit produced i.e. 10,200.