Management Accounting and Control Systems

Report on
NITTE RICE FLOUR MILL
Cost Sheet and Break Even Analysis

Submitted by:
Group No: 06

Havish P D (55) Bharath R Shetty(23)

Abhijith K(03) Dsouza David Francis(47)
Chethan Nayak (29) Andy Jason(11)

Submitted To:
Prof. Rakesh Shetty
Justice K. S. Hegde Institute of Management
NMAMIT, Nitte

18-10-2016
 NITTE RICE FLOUR MILL
Introduction:

Nitte is newly set up Rice Flour Mill business located at Moodbidre. Here you can find the
premier rice flour that makes your work easy in preparing food items as we sell a readymade
rice flour of best quality with affordable price. We promote our product through
advertisement like Media, flex, posters etc. We aim at providing healthy rice flour as we can.
We want ourselves to be placed as the loyal and quality Rice flour makers.

Ownership: Partnership

Name: Nitte

Tagline: Eat Healthy Be Healthy

Type of business: rice flour mills manufactures and retail shop

Mission:

Nitte produces the finest Rice flour with freshest Sona Masuri rice with quality to meet the
standard of excellence. We aim at satisfy the consumer with affordable price and premier
quality.

Objectives:

To establish the business as the premier Rice flour producers.

To achieve sales of about 50, 00,000Rs. In the first year By Providing Advertisement
through media, flex and issue of posters.
Profit Oriented
To diversify the business to the production of Sona Masuri.
To open a new branch in karkala.

Cost Sheet of 1st year

Particulars Units Cost per Amount
 unit (Rs.)
Raw Materials 93600 32.00 29,95,200
Direct Labor 93600 3.33 312000
Direct Expenses 93600 0.64 60000
Prime Cost 93600 35.97 33,67,200
Factory Overhead
Fule Charges 93600 0.38 36000
Factory Power 93600 0.38 36000
Factory salary 93600 1.03 96000
Factory Insurance 93600 1.28 120000
Repairs and maintainence 93600 0.13 12000
Works Cost 93600 39.18 36,67,200
Administration Overhead
Depreciation 93600 0.71 66000
Office Salary 93600 0.77 72000
Printing and stationery 93600 0.02 2000
licence and fee 93600 0.24 22000
Telephone expenses 93600 0.06 6000
Cost of Production 93600 40.97 38,35,200
(+) Opening Stock of F G
(-)Closing stock of F G 2812 40.97 1,15,200
COST OF GOOD TO BE SOLD 90788 40.97 37,20,000
Selling and Distribution OH
Transportation 90788 0.22 20000
Advertisement 90788 1.65 150000
commission 90788 1.69 153000
other Expense 90788 0.11 10000
packaging Cost 90788 5.62 510000
Total Cost 90788 50.26 45,63,000
Profit 90788 5.91 5,37,000
Sales 90788 56.17 5100000

Cost Sheet of 2nd year

Particulars Cost per
Units unit Amount (Rs.)
 Raw Materials 1,02,960 32.00 32,94,720
Direct Labour 1,02,960 3.64 374400
Direct Expenses 1,02,960 0.64 66000
Prime Cost 1,02,960 36.28 37,35,120
Factory Overhead
Fuel Charges 1,02,960 0.38 39000
Factory Power 1,02,960 0.39 40000
Factory salary 1,02,960 0.93 96000
Factory Insurance 1,02,960 1.17 120000
Repairs and maintenance 1,02,960 0.15 15000
Works Cost 1,02,960 39.29 40,45,120
Administration Overhead
Depreciation 1,02,960 0.41 42600
Office Salary 1,02,960 0.70 72000
Printing and stationery 1,02,960 0.02 2200
licence and fee 1,02,960 0.00
Telephone expenses 1,02,960 0.06 6000
Cost of Production 1,02,960 40.48 41,67,920
(+) Opening Stock of F G 2811.51 40.97 1,15,200
(-)Closing stock of F G 2,024 40.48 81920
COST OF GOOD TO BE SOLD 1,03,748 40.49 42,01,200
Selling and Distribution
OH
Transportation 103748 0.20 21000
Advertisement 103748 1.25 130000
commission 103748 1.68 174000
other Expense 103748 0.12 12000
packaging Cost 103748 5.59 580000
Total Cost 103748 49.33 51,18,200
Profit 103748 6.57 6,81,800
Sales 103748 55.90 5800000

Cost Sheet 3rd year

Particulars Cost per Amount
Units unit (Rs.)
 Raw Materials 1,07,640 32.00 34,44,480
Direct Labour 1,07,640 4.35 468000
Direct Expenses 1,07,640 0.67 72000
Prime Cost 1,07,640 37.02 39,84,480
Factory Overhead
Fuel Charges 1,07,640 0.37 40000
Factory Power 1,07,640 0.39 42000
Factory salary 1,07,640 0.89 96000
Factory Insurance 1,07,640 1.21 130000
Repairs and maintenance 1,07,640 0.15 16000
Works Cost 1,07,640 40.03 43,08,480
Administration Overhead
Depreciation 1,07,640 0.29 30810
Office Salary 1,07,640 0.67 72000
Printing and stationery 1,07,640 0.02 2300
licence and fee 0.00
Telephone expenses 1,07,640 0.05 5000
Cost of Production 1,07,640 41.05 44,18,590
(+) Opening Stock of F G 2,024 40.47 81920
(-)Closing stock of F G 1278.44 41.05 52480
COST OF GOOD TO BE SOLD 1,08,386 41.04 44,48,030
Selling and Distribution OH
Transportation 108386 0.19 21000
Advertisement 108386 0.92 100000
commission 108386 1.37 149000
other Expense 108386 0.09 10000
packaging Cost 108386 5.50 596000
Total Cost 108386 49.12 53,24,030
Profit 108386 5.87 6,35,970
Sales 108386 54.99 5960000

Variable Cost
 Particulars Cost per Unit Amount
Raw Material 32.00 29,95,200
Direct Labour 3.33 312000
Direct Expenses 0.64 60000
Factory Power 0.38 36000
Telephone expenses 0.06 6000
Advertisement 1.65 150000
Repairs and maintenance 0.13 12000
Printing and stationery 0.02 2000
Transportation 0.22 20000
fuel charge 0.38 36000
commission 1.69 153000
other expense 0.11 10000
packing expense 5.62 510000
Total Variable Cost 46.24 43,02,200

Fixed Cost
Particulars Cost per Unit Amount
Factory Insurance 1.28 120000
factory salary 1.03 96000
Office Salary 0.77 72000
Total Fixed Cost 3.08 288000

Marginal Cost Sheet

Marginal Coast Sheet

Particulars Amount
 Sales 5100000
Less:-Variable cost 4302200
Contribution 797800
Less:- Fixed cost 288000
Profit 509800

Break Even Sales

Brake Even Sales

Unit Sold 90788
Contribution/Unit 8.787504957
PVR 0.156431373
BEP (Unit) 32773.80797
BEP (AMT) 1841062.923

Profit Volume Ratio: Contribution / Sales*100

Break Even Point [BEP]:-
Fixed cost / Contribution per unit [in units]
Fixed cost / P/V Ratio [in value]
 Break Even Chart
7000000

6000000

5000000

4000000

3000000

2000000

1000000

total cost sales fixed cost