Name- Ahuja Aman

Roll no- 340656

Div F

Management Accounting
Assignment -2

Cost sheet
Introduction
Nescafe coffee is a brand of instant coffee made by nestile. It
comes in many different forms. The name is a portmanteau
of the words nestle and caf. Nestle first introduce their
flagship powderedcoffe brand in switzerland on April 1 ,
1938.

Cost sheet
For make a cost sheet we should know what is cost
sheet. Its a statement which consider the various cost
incurred in the year or financial period.

Direct cost
Direct cost is a price that company pays, specially
for productions

Indirect cost
Indirect cost is that cost which are not paid directly
by company. Indirect cost are the indirect
accountable prices paid by company such as
factory overhead, office and administrative
overhead and sales and distributions overhead.
Assumptions
Company produce coffee
Total cost of material consumed is available in
company site , so opening stock of raw material
and purchase of raw material are adjusted
Company produce 1 unit @100 gram
Cost sheet is given below

Cost sheet as per year 2015-16

 cost per
Particulars Amounts Rs (100)
unit
1) Direct Material 145000.00
Opening Stock of Raw Material 95000.00
Add: Purchase of Raw materials 70000.00
Less: Closing stock of Raw Materials 20000.00
Raw Material Consumed
2) Direct Wages i.e. Labour 65000.00
3) Direct Expenses 45000.00
PRIME COST (1+2+3) 255000.00 25.50
4)Add: Factory Overheads
Factory Power and fuel 25000.00
Depreciation on Plant & Machinery 45000.00
other factory expense 15000.00
cost of maintance 10000.00
work overhead 15000.00
Foreman's Salary/Supervisor's Salary 10000.00
indirect labour 12000.00
FACTORY COST/WORKS COST (1+2+3+4) 387000.00 38.70
5)Add: Office and Administration Overheads 35000.00
Office Rent 12000.00
Depreciation on office building 20000.00
electricity 10000.00
office and gen. expenses 5000.00
managers salary 40000.00
telephone expenses 10000.00
postage and telegram expenses 12000.00
COST OF GOODS SOLD (1+2+3+4+5+6) 531000.00 53.10
Add: Selling and Distribution Overheads
sales commision 30000.00
carriage outward 20000.00
sales expense 50000.00
salary of salesman 50000.00
COST OF SALES (85%) 681000.00 68.10
Profit (15%) 119000.00 11.90
SALES (100%) 800000.00 80.00

Total cost is 681000 and total sales is 800000 so thats

why profit for the company is 119000.

Conclusion
As we can see that profit margin is 15% which is good
for company, it means that company have good profit
margin. With the help of cost sheet we can analyse the
different cost incurred in a year. With the help of this
assignment we got to know how to prepare cost sheet
considering different expenses.