COST SHEET

PRACTICAL PROBLEMS AND SOLUTION

PROBLEM NO: 1.

From the following information you are required to prepare cost sheet for the year
ended 31st March 2019.

Particulars Rs.

Stock of raw materials on 1st April 2018 10,000

Carriage Inward 5,000
Direct Wages 50,000
Direct Expenses 40,000
Purchases of raw materials 2,00,000
Factory Rent 4,000
Motive Power 2,000
Carriage outward 6,000
Advertisement 12,000
Telephone Charges 3,000
Sales Commission 8,000
Income Tax 10,000
Office Rent 20,000
Divined Received 40,000
Director’s Remuneration 25,000
Warehouse Rent 18,000
Sales 5,00,000
Stock of raw materials on 31st March 2019 60,000
 COST SHEET

For the year ended 31st March 2019

Particulars Amount Amount

(Rs.) (Rs.)
Opening stock of raw materials 10,000
Add Purchases of raw materials 2,00,000
Add Carriage Inward 5,000
2,15,000
Less Closing stock of raw materials 60,000
COST OF MATERIAL CONSUMRD 1,55,000
Add Direct Wages 50,000
Add Direct Expenses 40,000
PRIME COST 2,45,000
Add Factory Overheads
Factory Rent 4,000
Motive Power 2,000 6,000
FACTORY COST 2,51,000
Add Office Overheads
Telephone Charges 3,000
Office Rent 20,000
Director’s Remuneration 25,000 48,000
COST OF PRODUCTION 2,99,000
Add Selling& Distribution Overheads
Carriage outward 6,000
Advertisement 12,000
Sales Commission 8,000
Warehouse Rent 18,000 44,000
TOTAL COST 3,43,000
PROFIT 1,57,000
SALES 5,00,000
PROBLEM NO: 2

From the following particulars, prepare a cost sheet for the year ended 31st
December 2018.

Particulars Rs.
Stock on 1st Jan 2018
Raw materials 40,000
Finished goods 6,000
Work-in Progress 15,000
Purchases of raw materials 4,75,000
Carriage inward 12,000
Factory rent 7,000
Direct expenses 43,000
Income Tax 10,000
Direct wages 1,75,000
Power expenses 10,000
General expenses 33,000
Sales for the year 8,60,000
Depreciation on Plant & Machinery 10,000
Stock on 31st Dec. 2018
Raw materials 50,000
Finished goods 15,000
Work-in Progress 10,000
Office Rent 20,000
Advertisement 12,000
 COST SHEET

For the year ended 31st December 2018

Particulars Amount Amount

(Rs.) (Rs.)
Opening stock of raw materials 40,000
Add Purchases of raw materials 4,75,000
Add Carriage Inward 12,000
5,27,000
Less Closing stock of raw materials 50,000
COST OF MATERIAL CONSUMED 4,77,000
Add Direct wages 1,75000
Add Direct expenses 43,000
PRIME COST 6,95,000
Add Factory Overheads
Factory rent 7,000
Depreciation on Plant & Machinery 10,000
Power expenses 10,000
Add Opening stock of Work-in Progress 15,000
42,000
Less Closing stock of Work-in Progress 10,000 32,000
FACTORY COST 7,27,000
Add Office Overheads
General expenses 33,000
Office Rent 20,000 53,000
COST OF PRODUCTION 7,80,000
Add Opening stock of Finished Goods 6,000
7,86,000
Less Closing stock of Finished Goods 15,000
COST OF GOODS SOLD 7,71,000
Add Selling & Distribution Overheads
Advertisement 12,000 12,000
COST OF SALE 7,83,000
PROFIT 77,000
SALES 8,60,000
PROBLEM NO:3

Following information is provided by Raj Industries Ltd. Pune

Particulars Opening Balance Closing Balance

(Rs.) (Rs.)
Stock of raw material 40,000 50,000
Stock of Finished Goods 1,00,000 1,50,000
Stock of Work-in Progress 10,000 14,000

Other information:

Particulars Rs.
Indirect labour 50,000
Lubricants 10,000
Insurance on Plant 3,000
Purchases of raw material 4,00,000
Commission on sale 60,000
Salary of salesman 1,00,000
Administrative expenses 1,00,000
Carriage outward 20,000
Power & Fuel 30,000
Direct Labour 3,00,000
Depreciation on machinery 50,000
Factory rent 60,000
Repairs to factory building 11,000
Sales 12,00,000

Prepare a cost sheet and show profit/ loss.

 COST SHEET

Particulars Amount Amount

(Rs.) (Rs.)
Opening stock of raw materials 40,000
Add Purchases of raw materials 4,00,000
440000
Less Closing stock of raw materials 50,000
COST OF MATERIAL CONSUMED 3,90,000
Add Direct labour 3,00,000
PRIME COST 6,90,000
Add Factory Overheads
Indirect Labour 50,000
Repairs to factory building 11,000
Insurance on plant 3,000
Lubricants 10,000
Factory rent 60,000
Depreciation on Machinery 50,000
Power & Fuel 30,000
Add Opening stock of Work-in Progress 10,000
2,24,000
Less Closing stock of Work-in Progress 14,000 2,10,000
FACTORY COST 9,00,000
Add Office Overheads
Administrative expenses 1,00,000 1,00,000
COST OF PRODUCTION 10,00,000
Add Opening stock of Finished Goods 1,00,000
11,00,000
Less Closing stock of Finished Goods 15,0000
COST OF GOODS SOLD 9,50,000
Add Selling & Distribution Overheads
Commission on sale 60,000
Salary to salesman 1,00,000
Carriage outward 20,000 1,80,000
COST OF SALE 11,30,000
PROFIT 70,000
SALES 1200000