NUMERICALS ON COST SHEET

Cost Sheet Cost sheet is a document that provides for the assembly of an estimated detailed cost in respect of cost centers and cost units. It analyzes and classifies in a tabular form the expenses on different items for a particular period. Additional columns may also be provided to show the cost of a particular unit pertaining to each item of expenditure and the total per unit cost. Cost sheet may be prepared on the basis of actual data (historical cost sheet) or on the basis of estimated data (estimated cost sheet), depending on the technique employed and the purpose to be achieved.
2

COST SHEET 1. The following figures are extracted from the books of XYZ Ltd. For the year ended 31st March 11. Prepare a Cost-Sheet showing clearly cost/unit. Raw Material Direct Wages Direct Expenses Factory Expenses Unproductive Wages Office Expenses Selling Expenses Units Produced 20,000 14,000 6,000 2,000 12,000 4,000 2,000 2,000
3

2.From the books of account of M/S XYZ Enterprises, the following details have been extracted for the year ending 31 st March 2011:
Opening stock of materials
Closing stock of materials Purchase Direct Wages Indirect Wages Salaries of administrative staff Freight Inward

1,88,000
2,00,000 8,32,000 2,38,400 16,000 40,000 32,000

Freight Outward
Sales Cash discount Bad debts written off Repairs of plant & machinery Factory rent, rates & taxes Office rent, rates & taxes Travelling Expenses Salesmen's salaries & commissions Depreciation of plant & machinery Depreciation of furniture Director's Fees Factory electricity charges Fuel Sale of scrap General charges Manager's salary

20,000
15,79,800 14,000 18,800 42,400 12,000 6,400 12,400 33,600 28,900 2,400 24,000 48,000 64,000 500 24,800 48,000

The managers time is shared between the factory and the office in the ratio of 20:80. From the 4 above details you are required to prepare a cost-sheet.

3. The PET Chemicals Co. supplies you the following details from its cost records:

Opening stock of raw material Closing stock of raw materials Direct Wages Indirect Wages Sales Opening stock of WIP Closing stock of WIP Purchase of raw materials Factory rent, rates & power Depreciation of plant & machinery Expenses on purchases Carriage outward Advertising Office rent & taxes Travelers wages & commission Opening stock of finished goods Closing stock of finished goods
Prepare a Cost-Sheet giving the maximum possible break-up of cost and profit.

75,000 91,500 52,500 2,750 2,00,000 28,000 35,000 66,000 15,000 3,500 1,500 1,000 5,000 2,500 6,500 54,000 31,000
5

4. The following particulars relate to a manufacturing concern for the year 2011.
Opening Stock of Materials Unproductive wages Wages Purchases Material Scrap Overtime Stores Loose tools 70,000 10,000 80,000 1,00,000 1,000 2,000 4,000 1,000

Advertisement Discount Closing stock of Raw Materials Carriage Inwards Depreciation Insurance Bank Interest Dividends Provisions for Sinking Fund Inspection Fee Postage Technical Directors Fees Managers Salary Supervision Expenses Research Expenses Goodwill written off Clearing Charges Subscription for Technical journal Collection charges

6,000 1,000 30,000 4,000 3,000 1,000 6,000 10,000 15,000 1,000 2,000 15,000 20,000 1,000 12,000 10,000 1,000 100 200
6

You are required to prepare Cost-Sheet.

5. The following particulars have been extracted from the books of ABC co. Ltd. Particulars Stock on Jan. 1,2011 Stock of material on Dec.31,2011 Marerial Purchased Factory Supervisors salary Office salaries Carriage inwards Carrriage outwards Cash discount allowed Bad debts written Repairs to Plant & Machinery Factory rent & rates Office rent & rates Travelling expenses of salesman Salesman Commission Production wages Depreciation of Plant & Machinery Depreciation of office furniture Director's Fees Factory Gas & water charges Office expenses General Charges Manager's salary Amount 47,000 50,000 2,08,000 9,600 14,000 8,200 5,100 3,400 4,700 10,600 3,000 1,600 3,100 8,400 1,40,000 7,100 600 6,000 1,500 300 5,000 12,000

Out of 48 working hours in a week, the time devoted by the manager to the factory and office was 40 hours and 8 hours 7 respectively, throughout the accounting year. Prepare Cost-Sheet.

6. The following particulars have been extracted for the year 2011:
Cost of Materials
Wages Factory overheads Administrative charges Selling charges Distribution charges Profit

6,00,000
5,00,000 3,00,000 3,36,000 2,24,000 1,40,000 4,20,000

A work order has to be executed in 2012 and the estimated expenses are: Materials Rs. 8,000 and Wages Rs. 5,000. Assuming that in 2012 the rate of factory overheads has gone up by 20%, distribution charges have gone down by 10% and selling & administrative charges have gone each up by 15%, at what price should the product be sold so as to earn the same rate of profit on the selling price as in 2011. Factory overheads are based on wages and administrative, selling & distribution expenses are base on factory cost.
8

7. From the following data, prepare a cost sheet for the year 2011.
Opening stock of raw materials Purchases Closing stock of raw materials carriage outwards Wages direct Wages indirect Chargeable expenses Factory rent & rates Office rent & rates Indirect materials Factory supervisor salary Depreciation on plant Depreciation office furniture Office Salary Salesman Salary Opening WIP Closing WIP Sale of by product Other factory Expenses Other office expenses Managing Director's remuneration Other selling expenses Packing charges Opening stock of finished goods Closing stock of finished goods Travelling expenses of salesmen Carriage Inward Sales Advance income tax Advertisement 3,00,000 8,00,000 4,00,000 50,000 7,00,000 1,00,000 2,00,000 40,000 5,000 15,000 10,000 5,000 1,000 25,000 20,000 20,000 10,000 10,000 57,000 9,000 1,20,000 10,000 40,000 10,000 50,000 11,000 10,000 25,00,000 1,50,000 20,000 9

M.D.s remuneration to be allocated as Rs. 40,000 to factory, Rs. 20,000 to office and Rs. 60,000 to selling overheads.

8. Jolley Shoes Co. manufactures two types of shoes A & B. Production costs for the year ended 31st March 2011 were: Direct Materials Direct Wages Production Overheads Total 15,00,000 8,40,000 3,60,000 27,00,000

There was no work-in-progress at the beginning or at the end of year. It is ascertained that: Direct material in type A shoes consists twice as much as that in type B shoes The direct wages for type B shoes were 60% of those of type A shoes Production overhead cost was same per pair of A & B type Administrative overhead for each type was 150% of direct wages Selling cost was Rs. 1.5/pair Production during the year were: Type A 40,000 pairs of which 36,000 were sold; Type B 1,20,000 pairs of which 1,00,000 were sold Selling price was Rs. 44 for type A and Rs. 28 for type B pair. Prepare a statement showing cost & profit of Shoe A & Shoe B.
10

9. Following are the records of a company of past year. The directors of co. consult you that what minimum price of the product should be fixed. Company aims at producing in large scale. Production and Sales 100 units Materials Direct Labour Direct Expenses Factory Expenses Office Expenses Selling Expenses Sales Rs. 4,200 3,800 400 1,800 900 1,500 13,500

It is ascertained from the records that 60% of the works overhead fluctuate directly with production and 50% of the selling expenses fluctuate with sales. It is anticipated that the department would produce and sell 1,000 units per annum and direct labour per unit will be reduced by 25% while fixed works overhead will increase by Rs. 1,200. Office on cost and fixed selling charges are expected to show an increase of 20%. Besides these, no other changes are anticipated. Prepare a cost statement for submission to your client.
11

10. Prepare a cost sheet showing the total and per tonne cost of paper manufactured by Times Paper Mills Ltd. for the month of March 2011. There were 26 working days in the month. Also find the profit earned by the company. The details are as under: Direct Raw Materials: Paper Pulp Direct Labour: 280 Skilled workmen 300 Semi skilled workmen 470 unskilled workmen Direct Expenses: Special equipments hire charges Special dyes Work overheads: Variable Fixed Administration overheads Selling & Distribution overheads Opening Stock of paper Closing Stock of paper The paper is sold @ Rs. 3,000 per tone.

6,000 tons @ Rs. 900 per tonne Rs. 250/day Rs. 150/day Rs. 100/day Rs. 12,000/day Rs. 250/tonne of total raw material input 50% of direct wages Rs. 2,70,000 p.m. 12% of work cost Rs. 80/tonne sold 500 tonnes valued @ Rs. 2,501.60 per ton 300 tonnes valued at cost of production
12