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:
Direct materials |
5,60,000 |
Office on cost |
10% of work cost |
Direct wage |
4,10,000 |
Selling expenses |
5% of work cost |
Direct chargeable expense |
30,000 |
Profit |
20% of sales |
Factory expenses |
40% of direct wage |
|
|
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
Particulars |
Amount |
Amount |
Direct materials |
|
5,60,000 |
Direct wage |
|
4,10,000 |
Direct chargeable expense |
|
30,000 |
Prime cost |
|
10,00,000 |
Add: Factory expenses ( 40% of 4,10,000) |
|
1,64,000 |
Factory cost |
|
11,64,000 |
Add: Office on cost ( 10% of 11,64,000) |
|
1,16,400 |
Cost of production |
|
12,80,400 |
Add: Selling expenses ( 5% of 11,64,000) |
|
58,200 |
Total cost |
|
13,38,600 |
Profit 13,38,600 x 20 ÷ (100 − 20) |
|
3,34,650 |
Selling price |
|
16,73,250 |
#####
Click on link for YouTube videos |
|
Accounting for Share |
|
Share in Nepali |
|
Debentures |
|
Final Accounts: Class 12 |
|
Final Accounts in Nepali |
|
Work Sheet |
|
Ratio Analysis (Accounting Ratio) |
|
Fund Flow Statement |
|
Cash Flow Statement |
|
Theory Accounting Xii |
|
Theory: Cost Accounting |
|
Cost Accounting |
|
LIFO−FIFO |
|
Cost Sheet, Unit Costing |
|
Cost Reconciliation Statement |
#####
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
#####
PROBLEMS AND ANSWERS OF COST SHEET |
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 |
Required: Cost sheet showing (a) Prime cost; (b) Work cost;
(c) Cost of production; (d) Total cost; (e) Profit
[Answer: (a) Rs 400,000, (b) Rs 475,000;
(c) 593,750; (d) 641,250; (e) Rs 128,250]
***** #EPOnlineStudy *****
Thank you for investing your time.
Please comment on the article.
You can help us by sharing this post on your social media platform.
Jay Google, Jay YouTube, Jay Social Media
जय गूगल. जय युट्युब, जय सोशल मीडिया
Comment box closed