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Elements of Cost Sheet

Elements of Cost Sheet

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03/18/2014

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From the following figures, prepare separate statements of cost and profit for the month of
October 1995.

Rs.

Rs.

Stock on 1st

October, 95

Raw materials
Finished goods
Stock on 31st

October, 95

Raw materials
Finished goods
Work-in-progress:
On 1st

October, 95

On 31st

October, 95

60,600
35,900

75,000
30,900

1,25,600
1,42,200

Purchase of raw materials
Sale of finished goods
Direct wages
Factory expenses
Office and administration
expenses
Selling and distribution
expenses
Sale of scrap

2,85,700
13,40,000
3,75,000
2,12,500

1,03,400

75,000
2,600

Solution

Statement of Cost of Production

Period-- October 1995

Rs.

Rs.

Materials consumed
Opening stock
Purchases

Less: Closing stock

Direct wages

Prime cost

Factory expenses

60,600
2,85,700
3,46,300
(75,000)

2,71,300
3,75,000
6,46,300

Less: Sale of scrap

Adjustment for work-in- progress:
Opening
Closing

Works cost
Office and administration expenses
Cost of production

2,12,500
(2,600)

1,25,600
(1,42,200)

2,09,900
8,56,200

(16,600)
8,39,600
1,03,400
9,43,000

Statement of Profit or Loss

Period-- October 1995
Rs.

Stock of finished goods on October 01, 1995
Add: Cost of production

Less-- Stock of finished goods on October 31, 1995
Cost of goods sold
Selling and distribution expenses
Cost of sales

Profit (balancing figure)

Sales

35,900
9,43,000
9,78,900
(30,900)
9,78,900
75,000
10,23,000
3,17,000
13,40,000

Note-- Office and administration expenses may also be shown in the statement of profit or
loss as illustrated in the next problem.

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