Output Costing | Cost Sheet on Percentage Basis | Cost Accounting

Arjun EP

Published on: April 14, 2021

Cost Sheet on Percentage Basis

Sometime, some data are given in percentage basis.

In this condition, they are calculated on percentage basis.

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country

PROBLEM: 3A

The following information of a manufacturing company producing bricks provided to you:

Required: Cost statement showing selling price.

[Answer: (a) PC = Rs 10,00,000; (b) FC = Rs 11,64,000; (c) COP = Rs 12,80,400;

(d) COS or TC = Rs 13,38,600; (e) Profit = 3,34,650; (f) Sales = 16,73,250]

Solution:

Cost Sheet

#####

Click on link for YouTube videos
Accounting for Share	http://tiny.cc/889jkz
Share in Nepali	http://tiny.cc/k99jkz
Debentures	http://tiny.cc/yeakkz
Final Accounts: Class 12	http://tiny.cc/e89jkz
Final Accounts in Nepali	http://tiny.cc/w89jkz
Work Sheet	http://tiny.cc/579jkz
Ratio Analysis (Accounting Ratio)	http://tiny.cc/4fakkz
Fund Flow Statement	http://tiny.cc/wiakkz
Cash Flow Statement	http://tiny.cc/8gakkz
Theory Accounting Xii	http://tiny.cc/nfakkz
Theory: Cost Accounting	http://tiny.cc/tfakkz
Cost Accounting	http://tiny.cc/p29jkz
LIFO−FIFO	http://tiny.cc/dgakkz
Cost Sheet, Unit Costing	http://tiny.cc/w49jkz
Cost Reconciliation Statement	http://tiny.cc/829jkz

#####

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country

PROBLEM: 3B

BM Biscuits Company producing tiles provided the following information for the year 2020:

Material consumed	Rs 15,25,000
Direct labour	Rs 8,10,000
Chargeable expense	Rs 65,000
Factory expenses (12,500 labour hours)	Rs 10 per hour
Office on cost	15 % of work cost
Selling expenses	Rs 2.5 per unit
Opening stock	15,000 units
Produced during the year	125,000 units
Closing stock	10,000 units
Selling price	Rs 27 per units

Required: Cost statement showing profit or loss.

[Answer: (a) PC = Rs 24,00,000; (b) WC = Rs 25,25,000;

(c) COP = Rs 29,03,750; (d) COGS = Rs 30,19,900;

(e) COS = Rs 33,44,900; (f) Profit = 1,65,100; (g) Sales = 35,10,000]

Solution:

Cost Sheet

For 125,000 units

Particulars	Units	Amount
Material consumed		15,25,000
Direct labour		8,10,000
Chargeable expense		65,000
a. Prime cost		24,00,000
Add: Factory expenses ( 12,500 x 10)		1,25,000
b. Work cost		25,25,000
Add: Office on cost ( 15% of 25,25,000)		3,78,750
c. Cost of production @ Rs 23.23*	125,000	29,03,750
Add: Opening stock @ Rs 23.23	15,000	3,48,450
Less: Closing stock @ Rs 23.23	(10,000)	(2,32,300)
d. Cost of goods sold	130,000	30,19,900
Add: Selling expenses (Rs 2.5 x 130,000)		3,25,000
e. Total cost		33,44,900
Profit (selling price – total cost)		1,65,100
Selling price ( 130,000 x Rs 27)		35,10,000

Working note:

Per unit cost of production

= Cost of production ÷ Production units

= Rs 29,03,750 ÷ 125,000 units

= Rs 23.23

#####

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country

PROBLEM: 3A

The following extracted information is given to you by ABC Manufacturing Company ($/₹/Rs):

Particulars	Amount
Direct materials	220,000	Factory expenses	40% of wages
Productive wages	180,000	Office expenses	25% of work cost
Direct expenses	50,000	Selling and distribution expenses	10% of sales
Selling price	750,000
Provision for tax	13,125

Required: Cost sheet showing (a) Prime cost; (b) Work cost; (c) Cost of production; (d) Total cost; (e) Profit

[Answer: (a) Rs 450,000, (b) Rs 522,000; (c) 652,500; (d) 727,500; (e) Rs 22,500]

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country

PROBLEM: 3B

The following extracted information is given to you by KC Manufacturing Company ($/₹/Rs):

Particulars	Amount
Direct materials	200,000	Factory expenses	50% of wages
Productive wages	150,000	Office expenses	25% of work cost
Direct expenses	50,000	Selling and distribution expenses	10% of work cost
Interest received	2,780	Profit	20% on total cost