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  • Cost Sheet: (-) Sales of Wastage

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    Auras Raj Panta
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    This document summarizes the costs of a manufacturing business. It shows the opening and closing raw material stocks, raw material purchases and costs, wages, factory overhead, work in process, cost of production, cost of goods sold, selling costs, total costs, sales, and profit of 25% on sales. The key figures are total cost of Rs. 1,320,000, sales of Rs. 1,760,000 and profit of Rs. 440,000.

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    Solution page for cost account

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    Book1

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    This document summarizes the costs of a manufacturing business. It shows the opening and closing raw material stocks, raw material purchases and costs, wages, factory overhead, work in process, cost of production, cost of goods sold, selling costs, total costs, sales, and profit of 25% on sales. The key figures are total cost of Rs. 1,320,000, sales of Rs. 1,760,000 and profit of Rs. 440,000.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    10 views1 page

    Cost Sheet: (-) Sales of Wastage

    Uploaded by

    Auras Raj Panta
    This document summarizes the costs of a manufacturing business. It shows the opening and closing raw material stocks, raw material purchases and costs, wages, factory overhead, work in process, cost of production, cost of goods sold, selling costs, total costs, sales, and profit of 25% on sales. The key figures are total cost of Rs. 1,320,000, sales of Rs. 1,760,000 and profit of Rs. 440,000.

    Copyright:

    © All Rights Reserved
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    of 1

    Cost Sheet

    Particular Amount Amount


    Opeining stock of Maw material 120,000
    (+) Purchase of Raw Materials 700,000
    (+) Carriage 30,000
    (-) Closing stock of Raw Material 180,000
    (i) Value of Raw Materials 670,000
    Productive Wages 300,000
    (ii) Prime Cost 970,000
    (+) Factory Overhead
    Unproductive wages 28,000 28,000
    (-) Sales of wastage 5,000
    Work Cost incurred 993,000
    (+) Opeining WIP 45,000
    (-) Colsing WIP 22,000
    (iii) Work Cost 1,016,000
    (+) Office and administrative OHs
    Salary(office) 38,500
    Rent and Rates(Office) 25,500 64,000
    (iv) Cost of Production 27000 Units 1,080,000
    (+) Opening FGs 8000 Units 200,000
    (-) Closing FGs 3000 units 120,000
    (v) Cost of Goods sold 32000 units 1,160,000
    (+) Selling and distribution OHs
    Advertisement expenses 160,000
    (vi) Cost of Sales / Total Cost 1,320,000
    (+) Profit (25% on sales) 440,000
    (vii) Sales 1,760,000

    Working Notes
    1.Calculation of Closing stock of finished Goods
    We know,
    Opening FGs units + Production units = Sales units + Closing FGs units

    or, 27000 + 8000 = 32000 + Closing FGs Units


    Closing FGs Units = 3,000 Units

    2. Calculation of Profit
    Profit on sales = x/100-x × total cost
    = 25/(100-25) × 1320000
    = 440,000

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