1. From the following information of product X for the three months ended on 31 March 2020.

Prepare a Cost Sheet showing the cost per each item of expenses and cost per ton for that period.

Particulars Amount in (Rs.)

Raw Materials 28,000
Fuel 6,900
Electric Power 1,340
Process and General wages 63,500
Repairs 2,400
Haulage 1,060
Light and Water 400
Rent 2,000
Rates and Insurance 300
Office Salaries and General Expenses 7,000
Administration (Office) 5,000
Depreciation on Machinery 2,500

Ton Manufactured 17,200.

Ans. Cost per ton Rs.7.00; Prime Cost Rs. 91,500; Works Cost Rs. 1,08,400; Total Cost Rs.
1,20,400.

Haulage - Cost of loading raw ore at a mine site and transporting it to a processing plant.

2. From the following particulars of a colliery for the month of March 2020, prepare a Cost
Sheet.

Particulars Amount in (Rs.)

Royalties 25,000
Wages: Underground 45,000
Surface 10,000
Working Expenses:
Repairs and Renewals 2,500
Timber used 1,500
Stable Expenses 750
Stores 1,250
Rent 2,500
Depreciation 3,000
General Administration Expenses 2,000
Selling and Distribution Expenses 3,500
Marketable Coal Produced 5,000 Ton.

Ans. Prime Cost Rs. 80,000 (16 per ton); Works Cost Rs. 91,500 (Rs.18.30 per ton); Cost of
Production Rs. 93,500 (Rs. 18.70 per ton); Total Cost Rs. 97,000 (Rs. 19.40 per ton).
3. Find out in the appropriate Cost Sheet from the Selling Rate per ton of special paper
manufactured by a Paper Mill for the Government in January 2020 under the following divisions
of cost:

(a) Prime Cost (b) Works Cost (c) Total Cost (d) Selling Price.
The Cost Sheet is to be prepared with reference to data given below:
Direct Materials:
Paper pulp-500 ton @ Rs. 50 per ton.
Other miscellaneous materials-100 ton @ Rs.30 per ton.
Direct Labour:
80 skilled men-@ Rs. 3 per men for 25 days
40 unskilled men-@ Rs. 2 per men for 25 days
Direct Expenses:
Special equipment-Rs.3,000
Special dyes- Rs.1,000
Works Overhead:
Variable @ 100% on direct wages
Fixed @ 60%
Administration overhead @10% on works cost
Selling & Distribution overhead @ 15%
Profit 10% on Total Cost
Finished Paper Manufactured 400 ton
Sale of manufacture of wastage Rs. 800
There was no opening and closing stock of work-in-progress.
The scrap value of the special equipment after utilization in manufacture is nil.

Ans. (a) Rs. 40,000 (b) Rs. 52,000 (c) Rs. 65,000 (d) Rs. 71,500.

4. The following data related to the manufacturer of standard product during the month of March
2020:

Raw material consumed Rs. 80,000

Direct Wages Rs. 48,000
Machine worked hours 8,000
Machine Hour Rate Rs. 4
Office overhead 10% of works cost
Selling overhead Rs. 1.5 per unit
Unit Produced 4,000
Unit Sold 3,600 at Rs. 50 each
You are required to prepare a Cost Sheet in respect of above, showing (i) Cost Per Unit (b) Profit
of that period.

Ans. (i) Rs. 44 per unit (ii) Rs. 16,200; Prime Cost Rs. 1,28,000; Works Cost Rs. Rs. 1,60,000;
Cost of Production Rs. 1,76,000; Cost of Goods Sold Rs. 1,58,400; Cost of Sales Rs. 1,63,800.
5. In a Factory 15,000 units of an article were manufactured during the month of December
2020 and 13,500 units were sold at Rs. 7 per unit. The following figures are obtained from the
costing record:

Raw Material Consumed Rs. 52,000

Direct Wages Rs. 15,600
Works overhead expenses are allocated to production by means of machine hour rate. This
rate for December 2020 was Rs. 4 per hour and 1,100 hours worked during the month. Office
overhead is charged on the basis of 15% on works cost and selling overhead at Rs. 0.25 per
unit.
Compile a Cost Sheet showing (a) Cost Per Units (b) Profit for the month.

Ans. (i) Rs. 5.52 (ii) Rs. 16,605; Prime Cost Rs. 67,600; Works Cost Rs. 72,000; Cost of
Production Rs. 82,800; Total Cost Rs. 77, 895.

6. In a factory during the month of April 2020, 30,000 units were produced and 25,000 units
were sold at the end of the month @ Rs. 12 per unit. In order to produce these units, material
worth Rs. 1,24,000 were consumed and direct wages were paid to the extent of Rs. 36,000.
Factory overheads are charged @ Rs. 16 per hour, 640 hours were consumed in producing the
units. Office overheads are charged @ Rs. 20% of works cost and selling & distribution
overheads are charged @ 40 paise per unit sold. Prepare a Cost Sheet showing Total Cost and
Profit.

Ans. Cost of Production Rs. 2,04,288 or Rs. 6.81 per unit, Total Profit Rs. 1,19,760; Prime Cost
Rs. 1,60,000; Works Cost Rs. 1,70,240; Cost of Goods Sold Rs. 1,70,240; Cost of Sales Rs.
1,80,240.

7. From the following informations of a factory, prepare a Cost Sheet showing profit per unit:

Weight of Finished Product 1,710 kg

Labour Charges Rs. 3,680
Sales Rs. 20,416
No. of Units of Finished Products 1,914
Other Informations:
Factory Overhead 40% of wages
Office Overhead 20% of Factory Cost
Cost of Raw Materials per kg Rs. 5
Wastage in Manufacturing Process 5% of Material Weight.
Sale of Wastage at 10% of Material Cost.

Ans. Profit Per Unit Rs. 1.822.

8. From the following prepare a Cost Sheet:

Particulars Article A Article B

(Rs.) (Rs.)
Material 36,000 30,000
Labour 60,000 24,000
Works Overheads are 60% of Labour and Office Overheads are 20% of Works Cost. Profit is
10% of Cost.

Ans. Total Cost: A = Rs. 1,58,400; B = Rs. 82,080; Sales: A = Rs. 1,74,240; B = Rs. 90,288.

9. In the factory two grades of Pianos are manufactured, viz. , Grade No. 1 and Grade No. 2. The
cost of building 40 Pianos of which 20 are of Grade No. 1 and the remaining of Grade No. 2, is
Rs. 80,000. Pianos of Grade No. 1 cost 55 % and Pianos of Grade No. 2 cost 45% of the total
cost. Ascertain the cost of each grade and add there to 15% of indirect expenses. Transport and
space in the show-room cost Rs. 60 per Piano. Selling expenses and advertising are 15% on the
selling price, which is Rs. 4,000 in the case of Grade No. 1 and Rs. 3,800 in the case of Grade
No. 2.

Write up a Cost Sheet, showing the percentage of profit on total cost and selling price
respectively on each grade.

Ans. (i) Profit Rs. 16,200; Selling Price Rs. 80,000; (ii) Profit Rs. 22,000; Selling Price Rs.
76,000.

10. Rahul manufacturing company produces two types of machines X and Y. The production
during the month of December 2020 was 100 machines each. The cost of production was as
follows:

Particulars X (Rs.) Y (Rs.)

Direct Materials 18,000 11,000
Direct Labour 12,000 6,000
Direct Expenses 2,000 2,000
Other overhead expenses were: Rs.
(i) Factory 6,000
(ii) Office 5,700
Prepare a statement showing the selling price of each type of machine, if a profit of 25% on sales
is to be realized.

Ans. X (Rs.) Y (Rs.)

Prime Cost 32,000 19,000
Works Cost 36,000 21,000
Total Cost 39,600 23,100
Selling Price (Per Unit) 528 308
11. A factory produces 200 units of each of the commodities Rahul and Rupesh. The cost of
production is:
Particulars Rahul (Rs.) Rupesh (Rs.)
Direct Materials 12,000 10,000
Direct Labour 8,000 5,000
Direct Expenses 1,000 1,000
Other overhead expenses were: Rs.
(i) Factory 6,500
(ii) Office 3,480
If a profit of 25% on Sales is to be realized, what would be the selling price of each commodity
per unit?

Ans. Selling Price per unit: Rs. 180 for Rahul and Rs. 133.20 for Rupesh. Cost of Production:
Rahul Rs. 27,000 and Rupesh Rs. 19,980. Sales: Rahul Rs. 36,000 and Rupesh Rs. 26,640.

12. A manufacturer manufactures Stools, Chairs and Tables. The materials and wages costs are
separated as follows:
Particulars Stool (Rs.) Chair (Rs.) Table (Rs.)
Material for each 3.60 6.00 44.00
Wages for each 4.80 4.00 12.00
Production (in units) 6,000 3,000 600
Total Factory Overhead Rs. 60,000
You are required to determine the Works Cost of each type of furniture after assuming that one
table is equivalent to four stools and two chairs are equivalent to one table for the purpose of
factory overhead allocation.
Ans.
Stool Chair Table
Works Cost Rs. 75,400 55,000 43,600

Ratio for Factory Overhead 5 : 5 : 2

13. A Concern manufactures three types of fans- Table Fans, Ceiling Fans and Room Coolers.
Their costs are as under:
Particulars Table Fan Ceiling Fan Room Cooler
(Rs.) (Rs.) (Rs.)
Materials 20 25 125
Labour 40 60 120
Factory Overheads Rs. 30,000
Office Overheads Rs. 10,000
Selling & Distribution Overheads Rs. 15,000
Find out Total Cost if overheads are allocated on the basis of- one ceiling fan is equivalent to two
table fans and one room cooler is equivalent to five table fans. Production was:
Table Fans 250; Ceiling Fans 125; Room Coolers 25.
Ans. Ratio of allocation 2 : 2 : 1; Total Cost- Table Fans Rs. 37,000; Ceiling Fans Rs. 32,625;
Room Coolers Rs. 17,125.

14. Messers Shyam Tailors manufactures readymade garments, viz., Shirts, Pants and Coats. The
materials and wages per unit of garments are separated as below:
Particulars Shirts (Rs.) Pants (Rs.) Coats (Rs.)
Materials 50 75 400
Wages 30 45 160
The total factory overheads in the month of January 2020 were Rs. 39,000. You are asked to
determine the Total Cost per unit of each type of garment after assuming that one coat is
equivalent to four shirts and two pants are equivalent to one coat for the purposes of factory on
cost allocation. The office on cost amounted to Rs. 15,000 to be allocated on the basis of Prime
Cost.
The production for the month of January 2020 was Shirts 500, Pants 200 and Coats 100.
Ans. Total Cost- Shirt Rs. 120, Pant Rs. 195, Coat Rs. 750; Works Overhead Ratio 5 : 4 : 4;
Prime Cost Ratio 5 : 3 : 7.

15. From the following information, prepare a monthly Cost Sheet of the Renu Brick Works
showing cost per 1,000 bricks and the profit per 1,000 bricks.
Materials:
Lime- 900 tonne at Rs. 30 per tonne
Coal- 800 tonne at Rs. 25 per tonne
Sand- Rs. 10 per 1000 bricks made
Others- Rs. 5,000
Labour:
Sand Digging and Running Rs. 7,200
Brick Making Rs. 8,000
Factory Overhead- 25% of direct wages
Office Overhead- 10% of factory cost
Bricks Sold- 35,00,000 @ Rs. 30 per 1,000
Opening Stock of the bricks- 1,00,000
Closing Stock of the bricks- 6,00,000

Ans. Cost Rs. 30.525 per 1,000; Loss Rs. 0.525 per 1,000 Bricks; Prime Cost Rs. 1,07,200;
Works Cost Rs. 1,11,000; Cost of Production Rs. 1,22,100; Cost of Goods Sold Rs. 1,06,837.50;
Total Loss Rs. 1,837.50.

16. The following particulars have been extracted from the books of the Indian Slate Co. Ltd. For
the year ended 31st March, 2020:
Slate Quarried 6,500 ton all of which was used.
Wages: Rs. 50 per 1,000 Slates made.
Royalties: Rs. 1.50 per ton of Slate Quarried.
Works Overhead: 20% on wages.
Internal Carriage: Rs. 32,500.
Office Overhead: 60% of works overhead.
Stock of Slate on 1st April 2019: 30,00,000 valued at Rs. 60 per 1,000 Slates.
Slates sold during the year: 70,00,000 valued at Rs. 90 per 1,000 Slates.
Stock of Slates on 31st March 2020: 25,00,000 to be valued at cost during the year.
Prepare Cost Sheet and ascertain (a) Cost of each 1,000 Slates made. (b) Profit for the year.
Ans. Total Cost of 65 lakh Slates, Rs. 4,71,250. (a) Rs. 72.50 (b) Rs. 1,60,000.

17. From the following information, prepare a Statement of Cost of manufacture for the year
2020 and show what percentage each individual item of cost bears to the Total Cost.
Particulars Amount (in Rs.)
Opening Stock of Raw Materials 1,44,000
Purchase of Raw Materials 8,64,000
Closing Stock of Raw Materials 2,16,000
Wages 3,60,000
Factory Overheads at 20% on Prime Cost
Office Overhead at 80% on Factory Overhead

Ans. Prime Cost: Rs. 11,52,000; Works Cost: Rs. 13,82,400; and Total Cost: Rs. 15,66,720.
Percentage of Raw Material Consumed, Wages, Factory Overhead and Office Overhead to Total
Cost being 50.55, 22.98, 14.71 and 11.76 respectively.

18. From the following information find out various costs, the percentage of works overhead
with wages, percentage of office overhead with works cost and 25% profit on selling price:
Particulars Amount (in Rs.)
Material Consumed 2,00,000
Wages 4,00,000
Works Overhead 3,00,000
Office Overhead 1,80,000

Ans. Prime Cost Rs. 6,00,000; Works Cost Rs. 9,00,000; Total Cost Rs. 10,80,000; Sales Rs.
14,40,000; Percentage of Works Overhead with Wages 75%; Percentage of Office Overhead
with Works Cost 20%.

19. Usha Ltd. produces in 2020, 300 fans for which the following expenses were incurred:
Particulars Amount (in Rs.)
Material Used 62,600
Direct Labour Charges 55,400
Works Overhead 72,000
Establishment Expenses 24,000
Selling Expenses 9,000
Calculate (a) Total Cost (b) % of Works Cost to Prime Cost (c) % of Establishment and Selling
Expenses to Works Cost.
Ans. (a) Rs. 2,23,000 (b) 161% (c) 17.37%.

20. From the following figures of Trading Account of the firm ascertain the (a) Cost of Material
Used (b) Value of Output Manufactured Goods (c) % of Gross Profit on Sales;
Trading Account
Particulars Amount (Rs.) Particulars Amount (Rs.)
To Stock: 10,400 By Sales 84,000
Raw Material 2,400 By Stock: 9,800
Finished Goods 8,000 Raw Material 2,800
To Purchases 24,000 Finished Goods 7,000
To Wages 40,000
To Carriage 2,000
To Gross Profit 17,400

93,800 93,800

Ans. (a) Rs. 25,600 (b) Rs. 65,600 (c) 20.71%.

21. Following figures relate to the production of three types of articles A, B and C of a
manufacturing business:
Particulars A (Rs.) B (Rs.) C (Rs.)
Direct Materials 3,200 5,600 6,000
Direct Labour 2,800 5,200 5,400
Direct Expenses 320 560 2,000
Works Overheads are 50% of Prime Cost and Office Overheads 20% of Works Cost. Find Out
the Total Cost for each type of article.
Ans. Total Cost: A Rs. 11,376; B Rs. 20,448; C Rs. 24,120.

22. A manufacturer makes two kinds of Electric Pumps HPP and LPP. The following particulars
relate to these pumps for the month of January 2020:
Particulars HPP LPP Total
No. of pumps manufactured 20 10 30
Rs. Rs. Rs.
Direct Costs:
Materials 3,000 2,000 5,000
Wages 6,000 4,000 10,000
Power etc. 2,000 1,000 3,000
Other Indirect Costs:
Factory Supervision 3,600
Packing Expenses 216
Selling and Administrative Expenses 3,000
You are required to prepare a statement showing the cost of each kind of pump, taking the
following into consideration:
(i) Factory Supervision to be charged in proportion to direct costs.
(ii) Packing Expenses to be apportioned in the ratio that direct costs plus factory supervision
costs of HPP bear to similar costs of LLP.
(iii) Selling & Administration Expenses to be charged in proportion to the number of pumps
manufactured.

23. The Pen Manufacturing Company is producing two types of Pens- ‘Deluxe’ and ‘Popular’.
The manufacturing costs for the year ended 31st March 2020 were:
Particulars Amount
(Rs.)
Direct Materials 2,00,000
Direct Wages 1,12,000
Production Overhead 48,000
It is ascertained that:
(i) Direct Materials in ‘Deluxe’ type cost twice as much as that of ‘Popular’ type.
(ii) Direct Wages of ‘Popular’ type were 60% of those for ‘Deluxe’ type.
(iii) Production Overhead was 30 paise per pen for both types.
(iv) Administration Overhead for each type was 200% of Direct Labour.
(v) Selling Cost was 25 paise per pen for both the types.
(vi) Production during the year was:
‘Deluxe’ type- 40,000 pens of which 36,000 were sold.
‘Popular’ type- 1,20,000 pens of which 1,00,000 were sold.
(vii) Selling Prices were Rs. 7 per pen of ‘Deluxe’ type and Rs. 5 per pen of ‘Popular’ type.
Prepare a statement showing the Total Cost per pen of each type and the profit made on each
type of pen.
Ans. Cost per pen Deluxe: Rs. 5.55; Popular: Rs. 3.35; Profit per pen Rs. 1.45 and Rs. 1.65
respectively.

24. Aryan Ltd. is manufacturing coolers and the following details are furnished for the year
ended 31st March 2020:
Rs. Rs.
Work-in-Progress, 1.4.2019: Stock of Raw Materials,1.4.2019 2,05,000
At Prime Cost 51,000 Purchase of Raw Materials 4,97,000
Manufacturing Expenses 25,000 Direct Labour 1,71,000
Work-in-Progress, Manufacturing Expenses 84,000
31.3.2020: 45,000 Stock of Raw Materials, 31.3.2020 2,04,000
At Prime Cost 20,000
Manufacturing Expenses
On the basis of the above data, prepare a statement showing the cost of production.
Ans. Prime Cost Rs. 6,75,000; Cost of Production Rs. 7,64,000.
25. The following figures taken from the Cost Account of a manufacturer are in respect of the
month of March 2020. You are required to draw up a statement showing (a) Cost of Finished
Goods (b) Cost of Goods Sold.

Particulars 1st March, 2020 31st March

Rs. 2020
Rs.
Stock of Raw Materials 60,960 74,100
Purchased Raw Materials - 55,152
Work-in-Progress 18,756 22,652
Finished Goods Stock 42,936 25,380
Productive Wages - 41,964
Unproductive Wages - 1,800
Inward Carriage - 804
Rent and Taxes - 1,320
Lighting and Heating - 672
Depreciation and Maintenance of Plant - 6,408
Works Salaries - 4,692
Stores Expenses - 876
General Works Expenses - 16,800

Ans. (a) Rs. 1,13,452 (b) Rs. 1,31,008

26. From the following particulars find out (i) Cost of Raw Material Consumed (ii) Prime Cost
(iii) Factory Cost (iv) Profit on Sales:
Particulars Amount
(Rs.)
Opening Stock of Raw Materials 40,000
Purchase of Raw Materials 80,000
Carriage Inward 2,500
Opening Stock of Finished Goods 8,000
Closing Stock of Finished Goods 20,000
Closing Stock of Raw Materials 10,800
Depreciation on Plant 4,800
Steam and Power 2,400
Factory Rent 6,000
Productive Wages 70,000
Non-Productive Wages 2,000
Office Expenses 12,000
Selling Expenses 22,000
Sales 3,20,000

Ans. (i) Rs. 1,11,700 (ii) Rs. 1,81,700 (iii) Rs. 196,900 (iv) Rs. 1,01,100.
27. You are required to ascertain from the following figures what percentage of (a) The
Manufacturing Cost, (b) The Selling Overhead, and (c) The Management Overhead bears to the
Total Cost of the Goods Sold. You are further required to ascertain by what percentage the
average selling price should be raised in order to double the Profit.

Particulars Amount
(Rs.)
Opening Stock of Direct Materials 61,700
Work-in-Progress at Commencement 1,21,700
Purchase of Direct Material 2,86,500
Direct Wages 3,57,000
Factory Overhead 1,99,500
Selling Overhead 70,000
Management Overhead (applicable to Goods Sold) 1,10,000
Sales 12,50,000
Closing Stock of Direct Materials 75,400
Closing Work-in-Progress 1,35,600
Sale of Scrap 1,350
Carriage on Direct Materials 5,950
There is no Opening and Closing Stock of Finished Goods.
Ans. (a) 82%; (b) 7%; (c) 11%. The average Selling Price be raised by 20% to double the Net
Profit. W.I.P has been valued at Prime Cost.

28. From the following particulars, prepare a Statement of Cost for the year 2020:
Rs.
Material Consumed:
In Manufacturing 60,000
In Factory 10,000
Labour Used:
Productive 40,000
Unproductive 5,000
In Office 5,000
Expenses Incurred:
Direct Expenses 15,000
Works Expenses 3,000
Office Expenses 3,000
Selling Expenses 2,000
Depreciation:
Plant & Machinery 1,500
Office Buildings 1,000
Show Room 1,000
Manager’s Salary:
Factory 12,000
Office 8,000
Closing Stock:
Work-in-Progress 3,500
Finished Goods 2,500
Sale of Finished Goods 1,80,000

Ans. Prime Cost Rs. 1,15,000; Works Cost Rs. 1,43,000; Cost of Production Rs. 1,60,000; Cost
of Goods Sold Rs. 1,57,500; Cost of Sales Rs. 1,60,500; Net Profit Rs. 19,500.

29. The directors of a manufacturing business require a statement showing the production results
of the business for the month of March, 2020. The cost accounts reveal the following
information:
Stock in hand on 1st March 2020: Rs.
Raw Materials 25,000
Finished Goods 17,360
Stock in hand on 31st March 2020:
Raw Materials 26,250
Finished Goods 15,750
Purchase of Raw Materials 21,900
Work-in-Progress on 1st March 2020 8,220
Work-in-Progress on 31 March 2020
st 9,100
Sale of Finished Goods 72,310
Direct Wages 17,150
Non-Productive Wages 830
Works Expenses 8,340
Office and Administrative Expenses 3,160
Selling and Distribution Expenses 4,210
You are required to construct the statement so as to show (a) The Value of Material Consumed
(b) The Total Cost of Production (c) The Cost of Goods Sold (d) The Profit on Goods Sold (e)
The Net Profit for the month.
Ans. (a) Rs. 20,650 (b) Rs. 49,250 (c) Rs. 50860 (d) Rs. 21,450 (e) Rs. 17,240

30. The books and records of the Rajeev Manufacturing Company present the following data for
the month of March 2020:
Direct Labour Cost (160% of Factory Overhead) Rs. 16,000
Cost of Goods Sold Rs. 56,000
Inventory Account showed these Opening and Closing Balances:
1st March 31st March
Raw Materials 8,000 8,600
Work-in-Progress 8,000 12,000
Finished Goods 14,000 18,000
Other data:
Selling Expenses Rs. 3,400
General and Administration Expenses Rs. 2,600
Sales for the month Rs. 75,000
You are required to prepare statement showing Cost of Goods Manufactured and Profit Earned.
Ans. Purchase of Raw Materials Rs. 36,000; Factory Overhead Rs. 10,000; Cost of Goods
Manufactured Rs. 60,000; Profit Rs. 15,600.

31. The following figures are collected from the books of the Iron Foundry after the close of the
year:
Rs.
Opening Stock in the beginning of the year 21,000
Purchase during the year 1,50,000
Closing Stock at the end of the year 15,000
Direct Wages 30,000
Works Overhead 50% of Direct Wages
Stores Overhead on Materials 10% on the Cost of Materials
10% of the castings were rejected being not upto the specification and a sum of Rs. 1,200 was
realized on sale as scrap.
10% of the finished casting were found to be defective in manufacture and were rectified by
expenditure of additional works overhead charges to the extent of 20% on the proportionate
direct wages.
The total gross output of castings during the year was 1,000 ton.
Find out the Manufacturing Cost of the saleable casting per ton.
Ans. Total Cost Rs. 2,15,940; Manufacturing Cost per ton of saleable casting Rs. 239.93

32. The following particulars are obtained from the cost records of a manufacture:
Rs.
Raw Materials 1,28,000
Direct Wages 1,12,000
Factory Overhead 60% of Wages
Return of Material to Stores 1,600
Material transferred to other Jobs 800
10% of the production has been scrapped as bad and further 20% has been brought upto
specification by increasing factory overhead to 80% of wages. If the scrapped production
fetches only Rs. 940. The total gross output is 200 Units
Find out the production cost per unit of the Finished Goods.
Ans. Cost of Production per unit Rs. 1,713; Total Cost Rs. 3,08,340

33. On the basis of the following information, find out the Manufacturing Cost of the saleable
casting per ton.
Rs.
Raw Materials:
Opening Stock in the beginning of the year 15,000
Purchase during the year 1,70,000
Closing Stock at the end of the year 25,000
Direct Wages 80,000
Works Overhead 60% of Direct Wages
Stores Overhead 10% of Material Cost.
Total Gross Output of casting during the year was 5,000 ton of which 10% were rejected
being not according to specification and was sold as defectives @ Rs. 30 per ton. 20% of
finished casting had minor defect. These were rectified by expenditure of additional works
overhead charges to the extent of 25% on proportionate direct wages.

Ans. Total Cost Rs. 2,92,600; Manufacturing Cost per ton of saleable casting Rs. 65.02

35. Find out the value of Raw Material Consumed from the information given below:
Total Cost of Production Rs. 2,000; Works Cost is 80% of Total Cost of Production; Factory
Overhead is 150% of Office Overhead and the Value of Raw Material Consumed is 25% of
Productive Wages.
Ans. Value of Raw Material Consumed Rs. 200