7/31/2019 Cost Sheet Solutions

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Solution 1Cost sheet

Particulars Rs Total Cost Cost Per Unit

Opening Stock of RM

Add - Pur of RM

Less- Closing stock of

RM

Cost of MaterialConsumed

Direct Wages

Chargeable exp

Prime Cost

Factory Cost:-Rent

Motive Power

Heating

Insurance

Experimental

expensesWaste Materials

25000

250000

275000

20000

25000

10000

10000

5000

2500

1000

255000

100000

10000

365000

7/31/2019 Cost Sheet Solutions

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Particulars Rs Total Cost Cost Per Unit

Add- opening stock

Of WIP

Less- closing stock of

WIP

Work Cost

Office on cost

Salaries

Printing

Cost of productionAdd- opening stock of

FG

Less- closing of FG

53500

900

54400

3000

20000

1000

51400

416400

21000

437400

20000

457400

25000

432400

8.03

65.06

3.28

68.34

-----

68.34

-----

72.066

7/31/2019 Cost Sheet Solutions

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Particulars Rs Total Cost Cost Per Unit

Selling & Distribution

O/H

Salary

CommissionFree Samples

Other Selling exp

Cost of Sales

Profit 1/3 on cost

Sales

WORKING NOTES:-

Units producedAdd- opening stock of

FG

Less- closing stock

10000

5000500

1200

16700

449100

149700

598800

Units sold

2.784

74.85

24.95

99.80

6400 units

400 units

6800 units

800 units

6000 units

Calculation of other selling expenses on units sold

7/31/2019 Cost Sheet Solutions

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Particulars Rs Total Cost Cost Per Unit

For 6000 units @ Rs. 0.20p = Rs. 1200

(2) Calculation of Profit on cost price

Selling Price= Cost Price + Profit

100 = 75+25

= 25/75 * 449100

= 149700

3) Donations to charitable fund, and IT paid are items of pure finance hence I have

not included them in cost sheet

7/31/2019 Cost Sheet Solutions

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Solution 2 Cost sheetParticulars Quantity RS RS

Opening Stock of RM

+ Purchases-Closing stock of RM

Cost of materials Consumed

Direct wages

Prime Cost

Work Overhead- 50% of

Direct wagesstores Overhead- 50% of

Direct materials

Total cost of gross output

-Sales of rejected costing

Cost of finished Costing

Additional cost of rectifyingManufacturing Cost

2000

200

1800

-----1800

14000

10000010000

104000

20000

124000

10000

10400

144400

800

143600

360143960

Working Note:

Cal of cost of rectification

20/100 of proportionate wages is the additional cost i.e. 20/100 * 20000 = 4000.

For 2000 tons the cost is Rs.4000 therefore, 180 tons = ?180 * 20/100 = 360

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Solution 3 Cost sheetParticulars Rs Rs

Opening stock of RM

Add- Purchase of RMCarriage inwards

Less- closing stock of RM

Cost of material

Direct wages

Prime costFactory Overheads:-

Indirect wages

Factory rent, rates& power

Depreciation on plant

Add- opening Stock of WIP

Less- closing Stock of WIP

Works Cost

Office & Administrative

overhead office rent

Office Cost

75000

660001500

142500

91500

2750

15000

3500

51000

52500

103500

21250

124750

28000

152750

35000

117750

2500

120250

7/31/2019 Cost Sheet Solutions

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Particulars Rs Rs

Add- opening stock of FG

Less- closing stock of FG

COGSSelling & Distribution

Cost of Sales

Profit

sales

54000

174250

31000

14325017906

161156

17906

179062

Working Notes;-

Let SP 100Less - Profit 10% 10

Cost of sales 90

Less - selling & Distribution 10 ------- 10% on sale

CP 80

Calculation of Selling & Distribution overheads

CP + profit = Cost of Sales

80 +10 = 90

10/80 * 143250 = 17906

Calculation of profit

SP = CP + Profit = 100 = 90 +10

10/90 * 161156 (i.e. cost of sales)

7/31/2019 Cost Sheet Solutions

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Solution 4 Cost sheetParticulars Cost per 1000 bricks Total cost for 5000000

Coal: 2500kgs@ Rs.15 per kg 7.50 37500

Wages: 10*150*50 15.00 75000

Royalty 0.75 3750

Prime cost 23.25 116250

Works exp- 10% of wages &

coal

2.25 11250

Handling Charges 0.50 2500

Dep- 10% on Rs. 150000 3.00 15000

Work Cost 29.00 145000

Administrative exp- 5% of

wages & Coal

1.125 5625

Cost of Production 30.125 150625

+ Opening stock 4000

- Closing stock 33138

Cost of bricks sold 121487

Profit 78513