PREFACE Cost sheet is a statement prepared to show the various elements of costs, like prime cost, factory cost of production and total cost. It is prepared at regular intervals, for example, weekly, monthly quarterly, yearly, etc. In some cases comparative figures of various periods are also shown in the cost sheet so that assessment can be made about the progress of a business.
Cost sheet is a statement of cost showing cost per unit of any product at every level of production. It is important to know at what stage of production we are and what price the particular production stage has. Cost sheet is a statement of cost. In other words, when costing information is set out in the form of a statement it is called a cost sheet. It is usually adopted when only one product is produced and all costs are incurred for that product only. Cost sheet may be prepared for a week, for a month, quarterly or yearly indicating various components of cost such as prime cost, works cost, cost of production, cost of goods sold, total cost and also profitability of production.
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ACKNOWLEDGEMENT
This project report is a result of efforts of a number of persons directly or indirectly associated. I wish to acknowledge our deep appreciation for the valuable suggestion and guidance rendered to me by them which has helped me in completing this project. I am hearty thankful to Mrs Sonam Sadhu, for kindly approving this project work and extending all the co-ordination for this.
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CONTENT:-
Laxmi Soap Factory was established in the year 1959. But for the Ranglani family, the roots of soap manufacturing are traceable to the year 1921. Sheth Thakurdas Ranglani was based in Karachi when he initially started a soap-manufacturing unit . After partition, Thakurdas migrated to India and started a manufacturing unit in the year 1948.
The company manufactures Laundry Detergent, Detergent Cake, Detergent Powder / Dish Scouring bar and Toilet Soap / Laundry Soap / Multipurpose Soap and Essance Sticks(Agarbatti) also have their own Sulfonation plant. The company intends to go in for the manufacture of toilet soaps. As Mr.Girish puts it, "Ambitious plans are on the anvil inspite of stiff competition from all types of manufacturers, big and small."
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COST SHEET UNITS OF PRODUCTION = 170000 PARTICULAR PER UNIT PRICE TOTAL PRICE DIRECT MATERIAL 5.8 1000000 Acids 1.76 300000 Speciality chemicals 1.47 250000 Ordinary chemicals 1.76 300000 Perfumes .21 35000 TOTAL 1.29 220000 Direct labour Direct expense 3.11 530000 Prime cost 15.4 4134500 Factory overheads : Fixed: Depreciation 1.47 250000 Rent .58 100000 Power 1.02 175000 Insurance 0.88 150000 Supervisors salary 0.35 60000 Variable: Electricity 0.41 70000 Running exp. Of machine .58 100000 7
Work cost/ factory cost 20.69 5039500 Office overheads: Employee cost 5.8 1000000 Other exp. Computer 0.71 120000 Telephone 0.06 10000 Taxes 0.24 40000 Carriage out ward 0.12 20000 Cost of production 27.62 6229500 opening stock of finished goods 2 200000 -Closing stock of finished goods 0 0 Cost of goods sold 29.62 6429500 Selling & distribution overheads: Advertisement 2.35 400000 Delivery vehicles 2.06 350000 Petrol 1.03 175000 Packaging rates 0.3 50500 Cost of sales / total cost 35.36 7405000 Profit 18.51 3146700 Sales 53.87 10551700
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COST SHEET ANALYSIS
Information:- Selling & distribution overheads: Advertisement 2.35 400000 Delivery vehicles 2.06 350000 Petrol 1.03 175000 Packaging rates 0.3 50500
Depreciation 1.47 250000 Rent .58 100000 Power 1.02 175000
With the help of factory overhead , administration overhead & selling and distribution overhead we can characterise the cost sheet and the total sales of laxmi soap factory is 10551700. With the help of this information we can easily identify :- Pvr Breakeven point in rupees Breakeven point in units
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CONCLUSION :-
PVR = Cost/ sales = 7405000/ 10551700 = 0.70
Note:- to better understanding we can say that PVR is 70%.