MAC(sec-b)

ASSIGNMENT -1

COST SHEET
OF DAIRY
MILK.
EFFORTS BY:
NIHARIKA ANAND
MEGHA MITTRA
SHIVANSH DANDONA
LOVEDEEP KAPOOR
YASH GARG

DAIRY MILK- INTRODUCTION

DAIRY MILK is a brand of milk chocolate currently manufactured by CADBURY,
except in the United States where it is made by the Hershey Company. It was
introduced in the United Kingdom in 1905by and now consists of a number of
products. Every product in the Dairy Milk line is made with exclusively milk
chocolate.
Cadbury Dairy Milk remains at the top of the Indian Chocolate Market not only
because of its most delicious, best tasting chocolate but also because of its
memorable communication.
The following are the details of 4,50,000 units of CADBURY DAIRY MILK
CHOCOLATE: RAW MATERIAL REQUIRED FOR 4,50,000 UNITS:S.NO
.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10
11.

MATERIAL
Sugar
Cocoa Butter
Cocoa Solids
Peanuts
Milk Solids
Chocolate Coated
Raisin
Almonds
Honey
Boston Baked Bean
Salt
Apricot

AMOUNT
(in Rs.)
3,00,000
3,00,000
3,20,000
2,00,000
2,00,000
4,00,000
3,00,000
5,00,000
15,0000
25,000
75,000

 DIRECT LABOUR INVOLVES THE FOLLOWING EXPENSES:S.NO

.
1.
2.
3.
4.
5.
6.
7.
8.

PARTICULARS
Set Up
Mixer
Dough Roller
Cookie Cutter
Baker
Timer
Decorator
Quality control

HOURS SPENT
05
120
75
25
50
10
55
10

AMOUNT
(in Rs.)
20,000
1,80,000
1,80,000
20,000
1,00,000
20,000
80,000
1,00,000

Carriage Inward amounts to Rs. 2,42,500

Carriage Outward amounts to Rs. 20,000
MANUFACTURING COSTS ARE AS FOLLOWS:S.NO
.
1.
2.
3.
4.
5.

FIXED
Depreciation on Plant & Machinery
Rent
Power & Consumable Stores
Factory Insurance
Supervisors Salary

AMOUNT
(in Rs.)
2,57,500
1,50,000
1,50,000
1,50,000
50,000

S.NO
VARIABLE
AMOUNT PER UNIT
.
(in Rs.)
1.
Electricity Charges
0.11/U
2.
Power & Consumable Stores
0.22/U
3.
Running Expenses of Machine
0.33/U
Office & Staff Salary amounts to Rs. 10,00,000
Office Rent amounts to Rs.80,000
Expenses incurred on:Office Computer Rs. 1,20,000

Furniture
Rs. 3,00,000
Telephone
Rs. 10,000
Depreciation on Office Furniture amounts to Rs. 50,000.
Rent, Rates & Taxes amounts to Rs. 30,000.
Salaries to Administrative Staff amounts to Rs. 3,70,000.
SELLING AND DISTRIBUTION EXPENSES ARE AS FOLLOWS:S.NO
.
1.
2.
3.
4.
5.
6.

PARTICULARS
Advertisement
Petrol
Delivering Vehicles
Maintenance of Delivering Vehicles
Packing Rates
Bad Debts Written Off

AMOUNT
(in Rs.)
4,00,000
1,00,000
2,50,200
49,800
50,000
1,00,000

The Company charges Net Profit at the Rate of 20% on Selling Price.

COST SHEET
Output=4,50,000 chocolates
PARTICULARS

RAW MATERIALS
Sugar = 3,00,000
Cocoa Butter = 3,00,000
Cocoa Solids = 3,20,000
Peanuts = 2,00,000
Milk Solids = 2,00,000
Chocolate Coated Raisins = 4,00,000
Almonds =3,00,000
Salt = 25,000
Apricot = 75,000
Honey = 50,000
Baked Beans = 1,50,000
DIRECT LABOUR
Set up = 20,000
Mixer = 1,80,000
Dough roller = 1,80,000
Cookie cutter = 20,000
Baker = 1,00,000
Timer = 20,000
Decorator = 80,000
Quality control = 1,00,000
Carriage on Material = 2,42,500
PRIME COST
FACTORY EXPENSES
A. FIXED
Depreciation on Plant & Machinery = 2,57,500

TOTAL
COST

COST
PER
UNIT

23,20,000

5.16

7,00,000

1.56

2,42,500
32,62,500

0.53
7.25

Rent = 1,50,000
Power & Consumable Stores = 1,50,000
Factory Insurance = 1,50,000
Supervisors Salary = 50,000
B. VARIABLE
Electricity Charges = 50,000
Power & Consumable Stores = 1,00,000
Running Expenses of Machine = 1,50,000
FACTORY COST
OFFICE AND ADMINISTRATION EXPENSES:Office Staff Salary = 10,00,000
Rent = 80,000
Computer = 1,20,000
Furniture = 3,00,000
Telephone = 10,000
Carriage Outward = 20,000
Depreciation on Furniture = 50,000
Salaries to Administrative staff = 3,70,000
Rent, Rates & Taxes = 30,000
COST OR PRODUCTION/COST OF GOODS SOLD
SELLING & DISTRIBUTION EXPENSES
Advertisement (Print & By Local T.V. Channels) = 4,00,000
Petrol = 1,00,000
Delivery Vehicles = 2,50,000
Maintenance of Delivery Vehicles = 49,800
Packing Rates = 50,000
Bad Debts Written Off = 1,00,000
COST OF SALES
NET PROFIT ( 20% ON SELLING PRICE)
SALES

10,57,500

2.35

43,20,000

9.60

1980000

4.4

63,00,000

14.00

9,49,800

2.11

72,00,000
18,00,000
90,00,000

16.00
04.00
20.00