Management Accounting By Paresh Shah Oxford University Press Chapter No.

Chapter Name 6 Unit Costing

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Statement of Cost and Profit Particulars Direct Material Cost Add: Stock of Raw Material 1 January Purchase of Raw materials 0 Less: Stock of Raw Materials 31 January Productive Wages Prime Cost Works Overhead Charges a) Works Cost Office and general Expenses b) Cost of Production Stock of Finished Goods(Opening) Stock of Finished Goods(Closing) Cost of Goods Sold Profit Sales c) Percentage of Works Overhead to Productive Wages d) percentage of General Overhead to Works Cost
st st

Rs.

0 0 0 0 0 0 0

Statement of Cost and Profit For the period ended 31st December 2006 Rs. Rs. Stock of Raw Materials 1.1.2006 Add: Purchases Add: Carriage on Purchases 0 Less: Stock of Raw Materials 31.12.2006 a) Value of Materials Consumed Productive Wages b) Prime Cost Factory overheads: Drawing Office Salaries Repairs to Plant and Machinery Factory Rent, Rate, Taxes & Insurance Depreciation of Plant, Machinery, Tools Factory Gas, and Water Managers Salary (3/4 of Rs. 10,000) c) Percentage of Factory Overheads on wages d) Factory Cost General Overheads: Counting House Salaries Carriage Bad Debts Office Rent, Rates, Taxes & Insurance Travelling Expenses Travellers Salaries and Commission Depreciation on furniture Directors Fees Office Gas & Water Managers Salary General Expenses e) Total Cost f) Net Profit g) Sales 0 0

0 0

0 0 0

Statement of Cost of Production for the month of April Unit Production = 1 Rs. Per Unit Rs. Raw Materials Consumed Direct Labour Charges Prime Cost Factory Expenses Works Cost Administrative Overheads Cost of Production

0 0 0 -

Statement of Profit Rs. Cost of Production Selling Overheads Cost of Sales Profit for the period Sales Profit per unit sold Units Sold =

0 0 0.00 1

Statement of Cost and Profit Orient Rs. Materials Labour Prime Cost Works Overheads Works Cost Office Overheads Total Cost No. of units produced Cost per unit Profit per Unit Selling Price per Unit

Sujon Rs.

0.00 0.00 0.00 1 0.00 0.00

0.00 0.00 0.00 1 0.00 0.00

Cost Sheet Year ended 31.12.2007 Rs. Opening Stock Purchase of Material 0 Closing Stock Cost of Raw Material Consumed Productive Wages Prime Cost Works Overhead or Works on cost Works Cost Office Overhead Cost of Production Opening Stock of Finished Goods Closing Stock of Finished Goods Cost of goods Sold Selling expenses Total Cost or Cost of Sale Profit Sale of finished goods

Rs.

0 0 0 0 0 0 0 0

Cost Sheet for four weeks ended on 28th Nov. 2006 Units Produced = Units Sold = Raw materials consumed Direct wages Prime Cost Factory overhead on the basis of machine hours Works Cost Office on cost Cost of Production Opening stock of finished goods Closing Stock of finished goods valued at cost of production Cost of Goods sold Add: Profit Total Cost or cost of sale Cost of production per unit

1 Rs.

0 0 0

0 0 0.00000

( A ) Cost Sheet for year 2006 Cost of Materials Opening stock Purchases 0 Closing Stock Wages Prime Cost Works on cost Work Cost Office on cost Cost of production Opening stock of Finished Goods Closing stock Finished Goods Valuation by FIFO method Cost of Goods Sold Selling expenses Total Cost or Cost of sales Sales Loss 0 0 0 0 0 0 0 0

( B ) When Closing Stock is Valued by LIFO Method Cost of Production Opening Cost of Finished Goods Closing stock Finished Goods Valuation by LIFO method Cost of Goods Sold Selling expenses Total Cost or Cost of sales Sales Loss

0 0 0 0 0 0

( C ) When Closing Stock is Valued by Simple Average Cost Method Cost of Production Opening Cost of Finished Goods Closing stock Finished Goods Valuation by LIFO method Cost of Goods Sold Selling expenses Total Cost or Cost of sales Sales Loss

0 0 0 0 0 0

( D ) When Closing Stock is Valued by Weighted Average Method Cost of Production Opening Cost of Finished Goods Closing stock Finished Goods Valuation by weighted average method Cost of Goods Sold Selling expenses Total Cost or Cost of sales Sales Loss

0 0 0 0 0 0

( A ) Statement of Cost for the Year 2006 Direct Material Direct Wages Prime Cost Works Overhead Works Cost Administration Overhead Office Cost Selling Overheads Distribution Overheads Total Cost Profit Sales

0 0 0

0 0

( B ) Estimate of Work Order Rs. Direct Materials Direct Wages Prime Cost Works overhead Add: Increase Works Cost Administration overheads Add: Increase Office cost Selling overhead 16% on Works cost Add: Increase Distribution overhead 10% on work cost Less: Decrease Total Cost Add Profit Selling Price Rs.

0 0 0 0 0 0 0 0 0.0

( A ) Cost Sheet Particulars Direct Materials : A B Direct Wages Prime Cost Factory overheads Works Cost Adm. Overheads Cost of Production Selling & Distribution Overheads Cost of Sales Expected profit Selling price (per unit)

Product BXE (Rs. per unit) DXE (Rs. per unit)

0 0 0 0 0 0

0 0 0 0 0 0

( B ) Statement Showing the Net profit After tax for the year BXE Particulars Sales Values Less: Cost of Sales EBIT Less: Interest PBT Income Tax Profit after Tax (PAT)

DXE

Total 0 0 0 0 0