A PROJECT REPORT ON

COST SHEET OF LAXMI SOAP FACTORY

CODE NO- 138220592017

MBA 2nd SEM




SUBMITTED BY :- SUBMITTED TO:-
JERRIN RACHEL ALIYAS Mrs SONAM SADHU



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INDEX















S.NO TOPIC Page. No
1 PREFACE 3
2 ACKNOWLEDGEMENT 4
3 CONTENT 5
4 COST SHEET 6-7
5 COST SHEET ANALYSIS 8
5 CONCLUSION 9-10
6 BIBLIOGRAPHY 11
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PREFACE
Cost sheet is a statement prepared to show the various elements of costs, like prime cost, factory
cost of production and total cost. It is prepared at regular intervals, for example, weekly, monthly
quarterly, yearly, etc. In some cases comparative figures of various periods are also shown in the
cost sheet so that assessment can be made about the progress of a business.


Cost sheet is a statement of cost showing cost per unit of any product at every level of
production. It is important to know at what stage of production we are and what price the
particular production stage has. Cost sheet is a statement of cost. In other words, when costing
information is set out in the form of a statement it is called a cost sheet. It is usually adopted
when only one product is produced and all costs are incurred for that product only. Cost sheet
may be prepared for a week, for a month, quarterly or yearly indicating various components of
cost such as prime cost, works cost, cost of production, cost of goods sold, total cost and also
profitability of production.













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ACKNOWLEDGEMENT

This project report is a result of efforts of a number of persons directly or indirectly associated. I
wish to acknowledge our deep appreciation for the valuable suggestion and guidance rendered to
me by them which has helped me in completing this project.
I am hearty thankful to Mrs Sonam Sadhu, for kindly approving this project work and
extending all the co-ordination for this.















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CONTENT:-

Laxmi Soap Factory was established in the year 1959. But for the Ranglani family, the roots of
soap manufacturing are traceable to the year 1921. Sheth Thakurdas Ranglani was based in
Karachi when he initially started a soap-manufacturing unit . After partition, Thakurdas migrated
to India and started a manufacturing unit in the year 1948.


The company manufactures Laundry Detergent, Detergent Cake, Detergent Powder / Dish
Scouring bar and Toilet Soap / Laundry Soap / Multipurpose Soap and Essance Sticks(Agarbatti)
also have their own Sulfonation plant. The company intends to go in for the manufacture of toilet
soaps. As Mr.Girish puts it, "Ambitious plans are on the anvil inspite of stiff competition from
all types of manufacturers, big and small."














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COST SHEET
UNITS OF PRODUCTION = 170000
PARTICULAR PER UNIT PRICE TOTAL
PRICE
DIRECT MATERIAL 5.8 1000000
Acids 1.76 300000
Speciality chemicals 1.47 250000
Ordinary chemicals 1.76 300000
Perfumes .21 35000
TOTAL 1.29 220000
Direct labour
Direct expense 3.11 530000
Prime cost 15.4 4134500
Factory overheads :
Fixed:
Depreciation 1.47 250000
Rent .58 100000
Power 1.02 175000
Insurance 0.88 150000
Supervisors salary 0.35 60000
Variable:
Electricity 0.41 70000
Running exp. Of machine .58 100000
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Work cost/ factory cost 20.69 5039500
Office overheads:
Employee cost 5.8 1000000
Other exp.
Computer 0.71 120000
Telephone 0.06 10000
Taxes 0.24 40000
Carriage out ward 0.12 20000
Cost of production 27.62 6229500
opening stock of finished goods 2 200000
-Closing stock of finished goods 0 0
Cost of goods sold 29.62 6429500
Selling & distribution overheads:
Advertisement 2.35 400000
Delivery vehicles 2.06 350000
Petrol 1.03 175000
Packaging rates 0.3 50500
Cost of sales / total cost 35.36 7405000
Profit 18.51 3146700
Sales 53.87 10551700




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COST SHEET ANALYSIS


Information:-
Selling & distribution overheads:
Advertisement 2.35 400000
Delivery vehicles 2.06 350000
Petrol 1.03 175000
Packaging rates 0.3 50500

Depreciation 1.47 250000
Rent .58 100000
Power 1.02 175000


With the help of factory overhead , administration overhead & selling and distribution
overhead we can characterise the cost sheet and the total sales of laxmi soap factory is
10551700.
With the help of this information we can easily identify :-
Pvr
Breakeven point in rupees
Breakeven point in units


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CONCLUSION :-

PVR = Cost/ sales
= 7405000/ 10551700
= 0.70

Note:- to better understanding we can say that PVR is 70%.

Breakeven point (rupees) = fixed cost/ PVR
= 735000/ 0.70
= 1050000
Fixed cost include :-
Depreciation 1.47 250000
Rent .58 100000
Power 1.02 175000
Insurance 0.88 150000
Supervisors salary 0.35 60000







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Breakeven point (Unites) = fixed cost/ cost
= 735000/7405000
= 0.099

Margin of safety Ratio = profit/ PVR
= 3146700/0.70
= 4495285.7



















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BIBLIOGRAPHY:-

http://icabtutorial.com/costsheet-format/
http://www.moneycontrol.com
www.scribd.com
www.google.com