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Illustration 1 : From the following particulars, prepare a Cost Sheet showing the different elements of cost, bringing out

the figures for factory, selling and distribution and administration overhead separately for the period ending 31st December 2009: Particulars Stock of materials as on 1 -1 -2009 Stock of materials as on 31-12-2009 Purchase of materials Productive Wages Direct Expenses Unproductive Wages Factory Rent and Taxes Factory Lighting Factory Insurance Office Insurance Legal Expenses Rent of Warehouse Depreciation of Plant and Machinery Factory Heating Power Carriage outward Director's Fees (Work) Director's Fees (Office) Factory Cleaning Sundry Office Expenses Telephone expenses (office) Factory Stationery Office Stationery Loose Tools Written off Rent and Taxes (Office) Water-Supply( factory). Depreciation of Office Buildings Depreciation of Delivery Vans Sales Promotion Expenses Advertisement Sales Department Salaries Upkeep of Delivery Vans Bank Charges Commission on Sales Rs. 34,300 29,400 65,100 45,000 4,000 12,300 8,400 2,800 1,500 700 400 500 2,800 1,800 4,600 3,500 1,500 3,000 700 250 750 400 1,000 500 800 1,200 1,500 400 200 300 1,800 600 80 1,920

Illustration 2 :
The accounts of Artistic Manufacturing Ltd. for the year ended 31 December 2009 show the following: Particulars Rs. Stock of materials 1-1-2009 67,200 Materials Purchased 2,59,000 Wages 9,100 General Office Salaries 17,000 Bad Debts Written off 9,100 Travelers Salaries and Commission 10,780 Depreciation Written off Office Furniture 420 Rent, Rates, Taxes and Insurance (Factory) 11,900 Productive Wages 1,76,400 General Expenses 4,760 Gas and Water (Factory) 1,680 Travelling Expenses 2,940 Sales 6,45,540

Manager's Salary (2/3 Factory, 1/3 Office) Depreciation Written off on Plant, Machinery and Tools Cash Discount allowed Repairs of plant , Machinery and tools Carriage outward Direct expenses Rent, Rates, taxes and insurance (office) Gas and war ( office) Stock of material 31-12-2009

15,000 9,100 4.060 6,230 6020 10,010 2,800 560 87,920

Illustration 3 : The accounts of Mahesh Ltd. for the year ended 31 December 2009 show the following: Particulars Stock of Materials Opening Stock of Materials Closing Purchases of Materials Direct Wages Direct Expenses Indirect Wages Salaries to Administrative Staff Carriage Inwards Carriage Outwards Manager's Salary General Charges Legal Charges Commission on Sales Fuel Electricity Charges (Factory) Directors' Fees Repairs to Plant and Machinery Rent, Rates and Taxes Factory Rent, Rates and Taxes Office Depreciation on Plant and Machinery Depreciation on Furniture Salesmen's Salaries Audit Fees Rs. 2,70,000 3,00,000 12,48,000 3,57,600 1,20,000 24,000 60,000 48,000 37,500 72,000 37,200 20,000 28,000 96,000 72,000 36,000 63,000 18,000 9,600 45,000 3,600 50,000 18,000

1.The Managers time is shared between factory and office in the ration of 20: 80. 2. Carriage inward include Rs 7500 being carriage inward of plant and Machinery. 3,.Selling Price is 120% of the cost price. Illustration 4:

From the following particulars prepare cost sheet showing various elements of cost:
Particulars Opening Stock of Raw Materials Purchases of Raw Materials Carriage Outwards Direct Wages Power Technical Director Salary Factory Rent, Rates & Insurance Sale of Factory Scraps Depreciation on Factory Buildings Closing Work in Progress Factory Stationary Opening Stock of Finished Good Closing Stock of Raw Materials Fees to Brand Ambassador Stationery and Printing Staff Salaries Rs. 1,10,000 8,25,000 28,500 4,21,400 25,840 40,590 10,140 1,460 75,200 1,20,260 12,340 45,280 36,920 2,00,000 12,200 6,30,000

Trade Discount Office Rent Free Sample Expenses Closing Stock of Finished Goods
Sales are made to earn profit @ 10% on Cost Price.

1,20,000 60,000 20,320 50,240

Illustration 5 : The following particulars have been extracted from the books of M/s. Sohan Manufacturing Company for the year ended 31-03-2009 Particulars Rs. Opening Stock of Raw Materials 2,35,000 Closing Stock of Raw Materials 2,50,000 Raw Materials Purchase 10,40,000 Office salaries 48,000 Direct expenses 70,000 Carriage Inwards 41,000 Cash Discount Allowed 17,000 Repairs to Plant & Machinery 53,000 Rent, Rates & Taxes (Factory) 15,000 Rent, Rates & Taxes (Office) 8,000 Office Conveyance 15,500 Salesmen's Salaries & Commission 42,000 Productive Wages 7,00,000 Depreciation on Plant & Machinery 35,500 Depreciation on Office Furniture 3,000 Directors Fees 30,000 Gas and Water Charges (Factory) 7,500 Gas and Water Charges (Office) 1,500 Manager salary 60,000 Cost of Catalogues Printing 10,000 Loose Tools Written off 8,000 Trade-Fair Expenses 10,000 Out of 48 hours in a week, Manger devotes 40 hours for factory and 8 hours for office per week for the whole year. The Management has fixed the selling Price @ 110% of cost. Prepare detailed cost statement for the year ended 31-03-2009 llustration 6 : From the following particulars, prepare a cost sheet showing the components of total cost and profit for the year ended 31st March, 2004.
Particulars Rs.

Stock of finished goods on 1-4-2003 Stock of finished goods on 31-3-2004 Stock of raw materials on 1-4-2003 Stock of raw materials on 31-3-2004 Work in progress on 1-4-2003 Work in progress on 31-3-2004 Purchases of raw materials Carriage inwards Wages Works Manager's Salary Factory Employee's Salaries Factory Rent, Taxes & Insurance Power expenses Production expenses Sales for the year Income tax Dividend received Interest on debentures Transfer to Sinking Fund

6,000 15,000 40,000 50,000 15,000 10,000 4,75,000 12,500 1,75,000 30,000 60,000 7,250 9,500 43,000 8,60,000 5,000 2,500 10,000 20,000

Goodwill written off Selling Expenses General Expenses


Illustration 7 : From the following prepare cost sheet. Particulars Opening Stock: - Raw Materials - Work-in-Progress - Finished Goods Wages: - Direct - Indirect Purchases of Raw Materials Sales Factory Rent and Power Depreciation on Plant and Machinery Carriage inward Factory Expenses Office Rent and Rate Office Expenses Carriage Outward Commission and Advertising Closing Stock: Raw Materials Work-in-progress Finished Goods

10,500 16,000 32,500

Rs. 75,000 28,500 54,000 52,000 2,750

1,57,500 54,750 66,000 2,11,000 15,000 3,500 1,500 10,000 2,500 6,500 2,500 10,000

91,500 35,000 31,000

1,57,500

Illustration 8: Chandragupta & Co. submits the following data on 31st March, 2009. Particulars Sales for the year Inventories at the beginning of the year: - Finished goods - Work in progress Purchase of raw material Raw Materials Inventory (opening) Raw Materials Inventory (closing) Direct Labour Factory overhead to be taken @ 60% of direct labour cost Inventories at the end of the year: - Work in progress - Finished goods Other expenses for the year : Selling Expenses 10% of Sales Administration expenses 5% of Sales Prepare a Statement of Cost and Profits.

Rs. 2,75,00 0 70,000 4,000 1,10,00 0 3,000 4,000 6,500 6,000 8,000

Illustration 9 : Dunkel Ltd. Started a factory in Navi Mumbal on 1st April 2008. Following details are furnished about its activity during the year ended 31st March, 2009 :Raw Material consumed - 40,000 units @ Rs.7 per unit. Direct Wages :(a) Skilled worker Rs.9 per unit. (b) Unskilled worker Rs.6 per unit. Royalty (on raw material consumed) @ Rs.3 per unit. Works overheads @ Rs.8 per machine hour. Machine Hours worked : 25,000 Office Overheads at 1/3rd of Works cost. Sales Commission @ Rs.4 per unit.

Units produced 40,000. Stock of Units at the end : 4,000 units to be valued at cost of production per unit. Sale price is Rs.50 per unit. Prepare cost sheet and cost per unit. Illustration 10 : Prepare a cost sheet showing the total cost and cost per ton of paper manufactured by Times Paper Mills Ltd. for the month of March, 2009. Production is 6000 tons. There wer26 working days in the month. Also find the profit earned by the company. The details are as under :Direct Raw materials: Paper pulp : 6,000 tons @Rs.900 tonne. Direct labour: 280 Skilled workmen : Rs.250 per day 300 Semiskilled workmen : Rs.150 per day 470 Unskilled workmen : Rs.100 per day Direct expense: Special equipments hire charges : Rs. 12,000 per day Special dyes : Rs.250 per tonne of total raw material input Work overheads Variable : @50% of direct wages Fixed : Rs.2,70,000 p.m. Administration overheads : @12% of works cost Selling and distribution Overheads : Rs.80 per tonne sold. Opening stock of paper : 500 tonnes valued @ Rs. 2,501.60 per ton Closing stock of paper : 300 tonnes valued at cost of production. The paper is sold Rs.3,000 per tonne.