COST SHEET ASSIGNMENT

PROBLEM NO.6
Abhay, Bharat and Chetan are partners doing business as engineers sharing profit and losses in
the ratio of 2:1:1 respectively.
Abhay is a sleeping partner, Bharat looks after factory and Chetan looks after the administration.
The following figures are extracted from their books for the year ended 30th June, 1995:
Rs.
Raw Materials purchased 5,00,000
Wages – Direct 3,00,000
Wages – Indirect 50,000
Office Salaries 1,00,000
Carriage Inwards 10,000
Carriage Outwards 30,000
Sales 20,00,000
Opening Stock :
Raw Materials 2,00,000
Finished Goods 50,000
Traveling Expenses 10,000
Advertising 30,000
Power 10,000
Agent's Commission 50,000
Plant Maintenance 40,000
Rent, Rates, Taxes, etc. (9/10th for works, 1/10th for office) 10,000
Sundry Expenses:
Works 10,000
Office 20,000
Building Repairs 10,000
Salary to Partners :
Bharat 20,000
Chetan 10,000
Depreciation:
Plant and Machinery 20,000
Building 10,000
Closing Stock:
Raw Materials 2,00,000
Finished Goods 30,000
th 1/ th
Building is occupied 9/10 by Factory and 10 by Office.
You are required to prepare a detailed cost statement assuming that 1,00,000 units were
produced during the year
PROBLEM NO.7
The following details are available for the year ending 2004:
Rs.
Direct Wages 60,000
Purchase of Material 72,000
Indirect Materials 3,600
Indirect Wages 3,400
Office Salaries 7,200
Employer's Contribution to Employees State Insurance 600
Printing and stationery 1,200
Power and Fuel 5,400
Legal Charges 864
Office Rent 1,200
Sales (9,000 units) 1,80,000
Opening Stock :
Raw Materials 12,000
Work-in-Progress 2,880
Finished goods (600 units @ Rs.16.25 per unit)
Closing Stock :
Raw Materials 13,344
Work in Progress 9,600
Finished Stock (1,200 units) ?
Value the finished stock at cost of production.
Prepare a cost sheet showing different elements of cost.

PROBLEM NO.8
A factory manufactures a standard product and has a capacity of 4,000 units per week.
Following information is given.
Units Direct Direct Overheads
Produced Material Labour Fixed + Variable
1,200 6,000 2,400 9,000
2,000 10,000 4,000 13,000
2,500 12,500 5,000 15,500
The factory intends to quote a selling price for a sell of 3,000 Units on which it wants to earn a
profit of 50% on sales.
Find the selling price

PROBLEM NO.9
The following information for the year ending 31st March 2008 was extracted from books of
Sample Ltd which manufactures Cycles:
RS.
Direct Material consumed 7, 50,000
Direct Labour 4, 50,000
Direct Expenses 3, 00,000
Indirect Material Consumed 35,000
Depreciation on Machinery 26,500
Indirect Wages 61,500
Technical Directors Salary 17,500
Other Factory expenses 2, 34,500
Commission to Salesman 1, 58,500
Office Staff Salaries 1, 85,000
Audit fees 22,000
Showroom Expenses 1, 44,700
Other Administrative expenses 1, 68,000
Carriage outward 31,700
Advertisement 1, 15,100
Preliminary expenses written off 22,500
Provision for Tax 1, 50,000
Sales 30,00,000.

During the year ended 31st March 2008, 1500 cycles were produced and sold.
Following estimates are made for the year ended 31st March 2009:
1. Production and sale of cycles will be doubled.
2. Direct material cost per unit will rise by 50%.
3. Direct wages per unit will rise by 25%
4. Direct expenses per unit will be in same proportion to Direct Wages as in the previous
year.
5. Total factory overheads will be in same proportion to Prime cost, total administrative
overheads will be in same proportion to Works cost and total selling & Distribution
overheads will be in same proportion to Cost of production as in the previous year.
6. The management desires to charge profit on sales price in the same proportion as in the
previous year.
Prepare cost sheet for year ended 31 st March 2008 and Estimated cost sheet for the year
ended 31st March 2009 showing total cost and cost per unit.

PROBLEM NO.10
The following information is given:
Production and Sales 4,000 Units
Particulars of expenses for 4,000 Units
Material Cost Rs.12 per Unit.
Direct Wages Rs.10 per Unit.
Selling Price Rs.35 per Unit.
Overheads are as follows:
Fixed 6,000
Variable 3,600
Semi-Variable 2,400 of which 60% is fixed.

Prepare Cost Sheet from the above information and determine the profit per unit and also
prepare a tender sheet for sales of 5,000 units assuming that there is no change in cost.

PROBLEM NO.11
Dunkel Ltd. started a factory in Navi Mumbai on 1st April, 1995. Following details are furnished
about its activity during the year ended 31st March, 1996:
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 overhead @ 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 showing the various elements of cost-both in total and per unit.
PROBLEM NO.12
A Co. manufactures two types of products viz.A & B. The following information is available for
the year ended 31st March, 1998:

Direct Material Rs.6,75,000

Direct Wages Rs.9,90,000
Works Overheads Rs.1,95,000
(1) Direct Material used per unit in Product A was 3 times that of Product B.
(2) Direct Wages per unit in Product B were 2/3rd that of Product A.
(3) Works overheads per unit were the same for both the products.
(4) Administration overheads were 100% of the Prime Cost in each of the products.
(5) Selling and Distribution cost per unit was Rs.6 for both A and B.
(6) 35,000 units of Product A were produced, out of which 32,000 units were sold @
Rs.100 per unit.
(7) 30,000 units of Product B were produced, out of which 25,000 units were sold @ Rs.65
per unit.
Prepare Cost Sheet showing total cost and cost per unit for both the products.