Вы находитесь на странице: 1из 6

COST SHEET PROBLEMS

Prepare cost sheet on the basis of following info

Opening Stock of
Raw Material 8,500
Work in progress 9,100
Finished goods (1000 units) 20,500
Closing Stock of
Raw Material 9,000
Work in progress 9,500
Finished goods (1200 units) ??
Purchases of
Material (Direct) 88,500
Stores and spares 5,100
Direct Wages 60,500
Indirect Wages 8,900
Carriage Inward 7,500
Carriage Outward 9,300
Sales Commission 12,100
Advertisement 3,500
Rent Rates and Taxes
(50% to Prodn, 25% each
to Sales and Admn 8,000
Postage and Telegraph 2,500
Salaries Paid to
Production Dept 10,500
Administration Dept 8,200
Sales Dept 15,500
Depreciation on
Machinery 11,200
Furniture 2,400
Power and Fuel 13,100
Conveyance 1,200
Travelling to Sales Men 8,100
Professional Fees 1,500 Consultant, lawyer etc
Bad Debts 2,100
Interest Paid 800 Interest is called as finance cost
Commission Received 200 Finance cost
Depreciation on Delivery
Van 1,900
Sale of scrap 500
Cost of free sample 200
Printing & stationery 1,800
Production (Units) 10,000
Selling Price (unit) 40

Solution
Working Notes
Sales Qty = Opening stock + Production -Closing Stock
Sales Qty = 1000 + 10000 - 1200 = 9800

Production Overheads
Stores and spares 5,100
Indirect Wages 8,900
Rent taxes and rates 4,000
(50% of 8000)
Salary 10,500
Machinery Depreciation 11,200
Power and Fuel 13,100
Sale of scrap -500
52,300

Admin Overheads
Rent taxes and rates 2,000
(25% of 8000
Postage and Telephones 2,500
Salary 8,200
Furniture Depreciation 2,400
Conveyance 1,200
Professional Fees 1,500
Printing and Stationery 1,800
19,600

Sales Overheads
Carriage Outwards 9,300
Sales Commission 12,100
Advertisement 3,500
Rent taxes and rates 2,000
(25% of 8000)
Salary 15,500
Travelling Allowance to sales
men 8,100
Bad Debts 2,100
Depreciation on delivery van 1,900
Free samples 200
54,700

Item not to be considered


Item Reason Amount
Interest Paid Financial Cost 800
Commission Received Other Income 200
1,000

Cost Sheet of the Product


Production (units) 10,000
Sales (units) 9,800

Material Consumed Total Per Unit


Opening Stock of Raw Mat 8,500
Purchases 88,500
Carriage Inwards 7,500 104,500 10.45
Closing stock of raw material 9,000 95,500 9.55
Direct Wages 60,500 6.05
Prime Cost 156,000 15.60
Production Overhead 52,300 5.23
Factory Cost 208,300 20.83
Opening Work in progress 9,100
Closing Work in progress 9,500
Works Cost 207,900 20.79
Adm Overhead 19,600 1.96
Total Cost of production 227,500 22.75
Opening stock of finished goods 20,500
Closing stock of finished goods (1200x22.75) 27,300
Cost of Goods sold 220,700 22.52
Sales Overhead 54,700 5.58
Cost of Sales 275,400 28.10
Profit 116,600 11.90
Sales 392,000 40.00

Calculate the sale price of the product if the following changes in data are made: -

Sales commission is 5% of sales


Profit is 20% of the cost of sales

Solution
In this case all calcutions except Sales Overhead will remain same. So we copy the
remaining data as such and make necessary changes in sales overhead
Sales Overheads
Carriage Outwards 9,300 9,300
Sales Commission ???????
Advertisement 3,500 3,500
Rent taxes and rates 2,000 2,000
(25% of 8000)
Salary 15,500 15,500
Travelling Allowance to sales
men 8,100 8,100
Bad Debts 2,100 2,100
Depreciation on delivery van 1,900 1,900
Free samples 200 200
??????? 42,600
Assume cost of sales to be Rs 100
Cost of sales 100 280,106
profit 20 56,022
Sales 120 336,128
Sales Commission 6 16,806
Balance cost of sales 94 263,300

Cost Sheet of the Product


Production (units) 10,000
Sales (units) 9,800

Material Consumed Total Per Unit


Opening Stock of Raw Mat 8,500
Purchases 88,500
Carriage Inwards 7,500 104,500 10.45
Closing stock of raw material 9,000 95,500 9.55
Direct Wages 60,500 6.05
Prime Cost 156,000 15.60
Production Overhead 52,300 5.23
Factory Cost 208,300 20.83
Opening Work in progress 9,100
Closing Work in progress 9,500
Works Cost 207,900 20.79
Adm Overhead 19,600 1.96
Total Cost of production 227,500 22.75
Opening stock of finished goods 20,500
Closing stock of finished goods (1200x22.75) 27,300
Cost of Goods sold 220,700 22.52
Sales Overhead 59,406 6.06
Cost of Sales 100 280,106 28.58
Profit 20 56,022 5.72
Sales 120 336,128 34.30

Question
Prepare cost sheet from the following data: -
Production was 15000 units while sales were 14800 units
Opening stock of finished goods were 1200 units valued at Rs 20.50 per unit
The direct material consumed were Rs 96600 and direct labout was 40% of prome cost
Production Overheads was 15% of prime cost
Adm Overhead was 10% of cost of production
Sales Overhead were 15% of sales
Profits were 20% of sales

Cost Sheet of the Product %


Direct Material Cost 60 96,600 6.44
Labour 40 64,400 4.29
Prime Cost 100 161,000 10.73
Production O/H 15 24,150 1.61
Factory Cost 90 185,150 12.34
Adm Overheads 10 20,572 1.37
Cost of Production 100 205,722 13.71
Opening Stock of Fin goods 24,600 20.5
Closing Stock of Fin goods 19,201 13.71
Cost of goods sold 65 211,121 14.26
Sales overhead 15 48,720 3.29
Profit 20 64,960 4.39
Sales 100 324,802 21.95
Finance cost is not considered in cost sheet

Похожие интересы