COST ACCOUNTING

COST SHEET PROBLEMS:

1. From the following particulars prepare cost sheet:

Direct materials Rs.8000

Direct Wages Rs.6000
Direct Expenses Rs.2500
Administrative Overheads Rs.4000
Factory Overheads Rs.5000
Sales Rs.40000

2. From the following particulars prepare a statement showing

a. Raw materials consumed b. Prime Cost c. Works Cost d. Cost of Production

e. Profit.
1.1.06 31.1.06
Rs. Rs.
Raw materials 20,000 32,000
Work-in-progress 26,500 14,000
Purchase of raw materials 90,000
Carriage inwards 2,000
Direct wages 40,000
Chargeable expenses 15,000
Works overheads 22,500
Administrative overheads 10,000
Selling & distribution overheads 14,000
Sales 2,20,000

3. Calculate the cost of raw materials purchased from the following data.
Rs.
Opening stock of raw materials 20,000
Closing stock of raw materials 30,000
Expenses on purchases 10,000
Direct wages 50,000
Prime Cost 1,50,000

4. Prepare a statement of cost and profit from the following data.

Rs.
Opening stock of raw materials 10,000
Purchases of raw materials 40,000
Materials returned to supplier 2,000
Closing stock of raw materials 8,000
Direct wages 20,000
 Works on cost 25% on wagws; office on cost 20% on works cost: selling on cost 10%
on works cost; profit 10% on cost.
5. In a factory, a standard product is manufactured.From the following
particulars,prepare a cost sheet showing total cost and profit made.

Raw materials consumed 30,000

Labour 60,000
Works overhead is charged @ 40% of works cost and office overhead is taken @ 20%
on total cost. The standard product sold during the period is 180 units @ rs.1,200 each

6. In a factory,two types of fans are produced namely,popular and proxy. Ascertain the
cost and profit per unit sold from the following particulars.
Popular Proxy
Rs. Rs.
Material 8,200 9,450
Labour 4,450 4,900
Works overhead is 60% of labour and office overhead is 20% on works cost. The selling
expenses per fan sold is re.1 .The selling price of popular fan is rs.275 and proxy fan is
rs.400.
40 units of popular and 50 units of proxy are sold. There is no opening or closing stock
or closing stock.

7. The following data relate to the manufacture of a product during the month of April:
Raw materials consumed Rs.80,000
Direct wages Rs. 48,000
Machine hours worked 8,000
Machine hour rate Rs.4
Office overhead 10% on works cost
Selling overhead Rs.1.50 per.unit
Units produced 4,000
Unit sold 3,600 at Rs.50 each.

Prepare a cost sheet and show a)Cost per unit and b)profit for the period.

8. The accounts of Z Manufacturing Company for the year ended December,2007 show
the following: Rs.
Factory Office Salaries 6,500
General office Salaries 12,600
Carriage outward 4,300
Carriage on Purchases 7,150
Bad debts written off 6,500
Repairs of Plant,Machinery and Tools 4,450
Rent,Rates,Taxes & Insurance:
Factory 8,500
Office 2,000
Sales 4,61,100
Materials purchased 1,85,000
Travelling Expenses 2,100
Traveller’s Salaries & Commission 7,700
Productive Wages 1,26,000
Depreciation:
Plant, Machinery & Tools 6,500
Furniture 300
Director’s Fees 6,000
Gas and water --- Factory 1,200
---Office 400
Stock of Materials :
31st Dec.2006 62,800
st
31 Dec.2007 48,000
Income Tax 500
Manager’s salary(3/4 factory and 1/4 office) 10,000
General Expenses 3,400
Dividend 1,000
Prepare statement giving the following information:
a. Materials consumed b.Prime Cost c.Factory Cost d.Cost of Production e.Total Cost
f. Net Profit.

.
9. The modern manufacturing company submits the following information on 31st
March 2005:
Rs. Rs.
Sales for the year 2,75,000
Inventories at the beginning of the year:
Finished goods 7,000
Work-in-progress 4,000
Purchase of materials for the year 1,10,000
Materials Inventory:
At the beginning of the year 3,000
At the end of the year 4,000
Direct labour 65,000
Factory overhead 60% of the direct labour cost
Inventories at the end of the year:

Work in progress 6,000

Finished goods 8,000
Other expenses for the year:
Selling expenses 10% of sales
Administrative expenses 5% of sales

Prepare a statement of cost and profit.

10. From the following particulars, prepare a Cost Statement showing the components
of Total Cost and the profit for the year ended 31st December,2007.

1.1.2007 31.12.2007
Rs. Rs.
Stock of finished goods 6,000 15,000
Stock of raw materials 40,000 50,000
Work-in-progress 15,000 10,000
Purchase of raw materials 4,75,000
Carriage inward 12,500
Wages 1,75,000
Works Manager’s salary 30,000
Factory employees’salaries 60,000
Factory rent,taxes and insurance 7,250
Power expenses 9,500
Other Production expenses 43,000
General expenses 32,500
Sales for the year 8,60,000
Income tax 500
Dividend 1,000
Debenture Interest 5,000
Transfer to sinking fund for replacement of machinery 10,000
Goodwill written off 10,000
Payment of Sales tax 16,000
Selling expenses 9,250

--------------------------------------