STATEMENT OF COST SHEET

OUTPUT PER UNIT

Particulars Raw Materials consumed: Opening Stock of Raw Material Add: Purchases of Raw materials Add: Carriage on purchases Less: Closing stock of Raw material

Total Cost Rs.

Cost Per unit Rs.

Raw Material Consumed (RMC) Director Labour Chargeable Expenses

PRIME COST Add: Factory overheads Add: Opening work- in -progress Less: Closing work- in- progress

FACTORY COST Add: Office and Administration Overheads

COST OF PRODUCTION Add: Opening stock of finished goods Less: closing stock of finished goods

COST OF GOODS SOLD (COGS) Add: Selling and Distribution Overheads

COST OF SALES PROFIT (BALANCING FIGURE)

REVENUE/SELLING PRICE

Items not included in Cost Sheet: a) Income tax b) Dividends to shareholders c) Commission to managing directors d) Capital losses i.e. loss out of sales e) Interest on loan or debentures or bank interest f) Donations g) Capital expenditure h) Discounts on shares and debentures i) Premium on redemption of shares and debentures j) Underwriting commission

1. Prepare a cost sheet: Raw materials consumed Rs.1,60,000. Direct wages Rs. 80,000. Factory overheads Rs.16,000. Office overheads 10% of factory cost. Selling overheads Rs.12,000. Units produced 4,000. Units sold 3600. Selling price per unit Rs.100.

2. Prepare Cost Sheet:

Direct materials Rs. 200,000. Factory expenses Rs. 120,000. Office expenses Rs.90,000 Total sales Rs.6,50,000. Prime cost Rs. 410,000. 10 % of the output is in stock. 3. The following information is obtained: Stock on Jan 1, 2007 : Raw materials: Rs 40,000 and finished goods Rs. 30, 000. Purchases of Raw materials: Rs 240,000, direct wages Rs. 136,000. Works expenses Rs. 70,400. Dividends paid Rs. 40,000. Office expenses Rs. 24,000. Depreciation on plant Rs. 10,000, Selling and Distribution expenses Rs 32,000. Goodwill written off of Rs. 40,000. Work in progress: 1.1.2007: Rs. 64,000. 31.12.2007: Rs. 72,000.

Stock on31.12.2007: Raw materials Rs. 42,000 Finished goods Rs. 32,000.

4. Prepare a cost sheet in the books of Polly Limited using the following information (14 marks) Raw materials Rs. 33,000, Unproductive wages Rs. 10,500, Factory lighting Rs. 2,200, Motive power Rs.4,400, Directors fees (Works) Rs.1,000, Factory cleaning Rs.500, Factory stationery Rs.750, Loose tools written off Rs.600, Water supply (works) Rs.1,200 and Office insurance Rs. 500. Chargeable (Direct) expenses Rs. 3,000, Depreciation: Plant and machinery Rs. 2,000, Office Building Rs. 1,000 & Delivery vans Rs. 200. Upkeep of Delivery van Rs.700. Commission on sales Rs. 1,500, Productive wages Rs. 35,000. Factory rent and taxes Rs. 7,500, Factory heating Rs. 1,500. Directors fees (office) Rs. 2,000, Sundry office expenses Rs.200, Office stationery Rs.900, Rent and taxes (office) Rs.500, Factory insurance Rs. 1,100, Legal expenses Rs.400, rent of warehouse Rs. 300(selling), Advertising Rs.300, Sales Department salaries Rs. 1,500, Total output is 20,000 tons. Sale of finished goods is Rs. 550,000.

5. The following data relates to the manufacture of a standard product during the month of April,2009 Raw Materials: Rs. 180,000 Direct Wages: Rs. 90,000 Machine hours worked (hours): 10,000 Machine Hour Rate (per hour): Rs. 8 Administration overheads 10% of work cost Selling overheads Rs 5 per unit Units produced: 4000 Units Sold: 3,600 You are required to prepare a cost sheet in respect of the above 6. The following information has been obtained from the records of ABC corporation for the period from June 1 to June 30, 2009 On June 1 On June 30 Cost of raw materials 60,000 50,000 Cost of work-in-progress 12,000 15,000 Cost of stock of finished goods 90,000 110,000

Purchase of Raw material during June 2009: Rs. 480,000 Wages Paid Rs. 240,000 Factory Overheads Rs. 100,000 Administration Overheads Rs. 50,000 Selling & Distribution Overheads Rs. 25,000 Sales Rs 1,000,000 Prepare a statement giving the following information (a) Raw Material consumed (b) Prime Cost (c) Factory cost (d) Cost of goods sold; and (e) Net Profit