Cost Sheet

Particulars Opening Stock of Raw Materials Add.: Purchases Add: Expenses on Purchases of Raw Materials Less: Closing Stock of Raw Materials Raw Material Consumed Direct Wages Direct Expenses Prime Cost Factory Overhead Factory Cost (gross) Less: Sales of Scrap Factory Cost Add: Opening Stock of Work-in-Progress Less: Closing Stock of Work-in Progress Adjusted Factory Cost Office and Administration Overhead Cost of Production Add: Opening Stock of Finished Goods Less: Closing Stock of Finished Goods Cost of Goods Sold Selling and Distribution Overheads Cost of Sales Profit Sales Total Cost Cost Per Unit

Q1. Prepare a Cost Sheet from the following data: Raw Materials Opening Stock 10000 Purchases 85000 Closing Stock 4000 Direct Wages Other Direct Expenses Factory Overheads Office Overheads Selling Expenses 20000 10000 100% of Direct Wages 10% of Work Cost Rs. 2 Per Unit 1000 units (Rs. 16000) 10000 units 2000 units

Finished Goods Opening Stock Produced during the year Closing Stock

Also ascertain the selling price per unit so as to yield a profit of 20% on the selling price. **************

Q2. The Modern Manufacturing Company submits the following information on March 31, 2007 Sales for the year Inventories at the beginning of the year: Finished goods Work-in-progress Purchase of materials Materials inventory at the Beginning of the year End of the year Direct labour Factory overhead was 60% of the direct labour cost Inventories at the end of the year Work-in-progress Finished goods Other expenses for the year: Selling expenses 10% of sales Administrative expenses 5% of sales Prepare a Statement of Cost. **************** Rs 2,75,000 7,000 4,000 1,10,000 3,000 4,000 65,000 6,000 8,000

Q3. The following data relates to a company for the month of December 2007 Rs Stock of raw materials 1.12.2007 6,000 Raw materials purchased 56,000 Stock of raw materials 31.12.2007 9,000 Manufacturing wages 14,000 Depreciation on plant 3,000 Loss on sale of plant 600 Factory rent and rates 6,000 Office rent 1,000 General Expenses 800 Discount on sales 600 Advertisement expenses to be charged fully 1,200 Income tax paid 4,000 The number of units produced during December 2007 was 6000. The stock of finished goods was 400 and 800 units on 1.12.2007 and 31.12.2007 respectively. The total cost of units on hand on 1.12.2007 was Rs. 5600. All these had been sold during the month. Prepare cost sheet showing the total cost of production and cost per units of goods manufactured. Also find out the cost of sales. ******************