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Cost Sheet Q-3: From the following particulars prepare a cost sheet for the period ended
30.06.2018 :
Q-1: Calculate the Prime cost, Factory cost, Total cost of production and Cost of Particulars Amount Particulars Amount
sales from the following particulars :
Particulars Amount Particulars Amount Raw materials 66,000 Directors’ fees (office) 4,000
Raw Materials consumed 80,000 Wages paid to labourers 20,000 Productive wages 70,000 Factory cleaning 1,000
Chargeable expenses 4,000 Oil & Waste 200 Direct expenses 6,000 Sundry office expenses 400
Wages of Foremen 2,000 Storekeeper’s Wages 1,000 Factory lighting 4,400 Office stationery 1,800
Electric Power 400 Lighting : Factory 1,000 Factory heating 3,000 Factory insurance 1,100
Rent : Factory 4,000 Lighting : Office 400 Motive power 8,800 Office Insurance 1,000
Rent : Office 2,000 Repairs & Renewals : Haulage 6,000 Legal expenses 800
Depreciation : Factory Plant 1,000 Depreciation of Upkeeping of delivery vans 1,400
Office Premises 1,000 Machinery 2,000 -Plant and Machinery 4,000 Bank charges 100
Plant & Machinery 400 Office Premises 400 -Office Building 2,000 Salesmen’s Commission 3,000
Consumable Stores 2,000 Manager’s Salary 4,000 -Delivery vans 400 Loose tools written off 1,200
Directors’ Fees 1,000 Office Printing & Stationary 400 Bad Debts 200 Rent and taxes (Office) 1,000
Telephone Charges 100 Postage & Telegram 200 Advertising 600 Water supply 2,400
Salesmen’s Commission 1,000 Travelling Expenses 400 Directors’ fees (works) 2,000 Rent of warehouse 600
Advertising 400 Warehouse Charges 400 Unproductive wages 21,000 Estimating 1,600
Carriage Outward 300 Free Samples 600 Factory rent and taxes 15,000 Factory stationery 1,500
[Prime cost: Rs.1,04,000; Factory cost: Rs.1,18,000; Sales Department salaries 2,000 Sales Manager’s Commission 1,000
Cost of Production: Rs.1,27,500; Cost of sales: Rs.1,30,600] [Prime cost: 1,42,000; Works Cost: 2,15,000; Office Cost: 2,26,100; Cost of Sales: 2,35,300]

Q-2: The cost of sale of production ‘XYZ’ is made up as follows : Rs. Q-4: Calculate :
Material used in manufacturing 22,000 (a) Value of raw materials consumed
Materials used in packing materials 4,000 (b) Prime Cost
Materials used in selling the product 600 (c) Factory Overheads
Materials used in the factory 300 (d) Cost of production
Materials used in the office 500 (e) Cost of goods sold
Labour required in production 4,000 (f) The amount of profit
Labour required for supervision of management for factory 800 From the particulars given bellow:
Direct Expenses (factory) 2,000 Particulars Rs.
Indirect Expenses (factory) 400 Opening Stock :
Office Expenses 500 Raw Materials 15,000
Depreciation-office building and equipment 300 Finished Goods 12,000
Depreciation (factory) 700 Closing Stock :
Selling Expenses 1,400 Raw Materials 12,000
Freight on materials 2,000 Finished Goods 15,000
Advertising 500 Raw Materials Purchased 1,50,000
Assurning that all products manufactured are sold, what should be the selling Wages paid to Labourers 60,000
price to obtain a profit of 20% on cost? Chargeable Expenses 6,000
[Prime cost: Rs.34,000; Factory cost: Rs.36,200; Cost of Production: Rs.37,500; Rent, Rates and Taxes (Office) 15,000
Cost of sales: Rs.40,000; Profit: Rs.8,000; Sales: Rs.48,000] Power 6,000
Factory Heating and Lighting 6,000
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Factory Insurance 3,000 Materials used in selling the product 3,500

Experimental Expenses 1,500 Materials used in office 750
Sale of Wastage of Materials 1,500 Materials used in factory 1,250
Office Management Salaries 12,000 Labour required in producing 25,000
Office Printing & Stationery 600 Salary paid to works manager 4,500
Salaries of Salesmen 2,000 Expenses (indirect-office) 2,500
Commission of Travelling Agents 3,000 Expenses (direct-factory) 10,000
Sales 3,00,000 Expenses (indirect-factory) 1,250
[(a) Rs. 1,51,500; (b) Rs.2,17,500; (c) Rs.2,34,000; (d) Rs. 2,61,600; (e) Rs. 2,58,600; (f) Rs. 36,400] Bad debts 3,000
Packing expenses 1,500
Q-5: Calculate (a) Value of raw materials consumed, (b) Total cost of production, Lighting and heating charges of the factory 2,000
(c) Cost of goods sold, and (d) Amount of profit, from the following particulars : All the products manufactured are sold. What should be the selling price to obtain
Particulars Rs. a profit of 20% on Cost ?
Opening stock : [Prime cost: Rs.1,62,000; Works cost: Rs.1,71,000; Cost of sales: Rs.1,82,250; Sales: Rs.2,18,700]
Raw materials 13,500
Finished goods 25,000 38,500 Q-7: Calculate the prime cost, factory cost, total cost of production and cost of
Closing stock : sales from the following particulars :
Raw materials 7,500 Particulars Rs.
Finished goods 15,000 22,500 Raw materials consumed 1,20,000
Raw materials purchased 2,00,000 Directly chargeable expenses 5,000
Wages paid to labourers 80,000 Wages paid to labourers 25,000
Direct expenses 12,500 Grease, oil, cotton waste etc. 250
Experimental expenses 4,500 Salary of factory manager and clerks 17,500
Factory printing and stationery 3,500 Insurance of stock of raw materials 3,000
Rent of Premises : Consumable stores 4,000
Factory 2,500 Printing and stationery : Factory 500
Office 1,200 3,700 Printing and stationery : Office 2,000
Wages of fireman 10,000 Printing and stationery : Sales deptt. 1,000
Lighting office 1,250 Rent of office building 1,500
Audit fees 1,500 Depreciation : Factory premises 2,000
Telephone expenses 5,000 Depreciation : Office furniture 500
Advertising 12,500 Depreciation : Delivery vans 750
Market research expenses 5,500 Power and fuel 5,000
Salary of godown keepers 1,750 Contribution to provident fund of factory employees 10,000
Travelling expenses 7,500 Salaries of administrative directors 1,000
Commission of travelling agents 5,000 Bank charges 750
Sales 5,00,000 Cost of samples 2,500
[(a) Rs.2,06,000; (b) Rs.3,27,950; (c) Rs.3,37,950; (d) Rs.1,29,800] Salaries of sales manager 3,000
Advertising 5,000
Q-6: From the following particulars prepare a cost sheet for the period ended Packing Expenses 3,500
30.03.2011 Shortage in stocks of finished goods (Normal) 200
Particulars Rs. [Prime cost: Rs.1,50,000; Factory cost: Rs.1,92,250;
Materials used in manufacturing 1,02,000 Cost of Production: Rs.1,98,000; Cost of sales: Rs.2,13,750]
Materials used in packing materials 25,000
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Q-8: Prepare a statement of cost from the following Trading and Profit and Loss Trading and Profit & Loss Account
Account : for the year ending 31.03.2018
Trading and Profit & Loss Account
Particulars Amount Particulars Amount
for the year ending 31.03.2018
Opening Stock : Sales 4,00,000
Particulars Amount Particulars Amount
Materials 24,000 Closing Stock :
Opening stock : Sales 2,00,000 Finished Goods 80,000 Materials 40,000
Materials 16,000 Closing stock : Purchase of Materials 2,40,000 Finished Goods 1,00,000
Finished goods 50,000 Materials 30,000 Direct Labour 60,000
Purchase of materials 1,40,000 Finished goods 60,000 Cost of moulds 6,000
Direct labour 20,000 Salary of factory managers 2,000
Grease, oil etc. 1,000 Machine depreciation 1,600
Salary of storekeeper 1,400 Gross Profit c/d 1,26,400
Power and fuel 1,600
5,40,000 5,40,000
Gross profit (c/d) 60,000
Salaries Gross Profit b/d 1,26,400
2,90,000 2,90,000
Office 18,000 Interest from bank 1,600
Lighting : Gross profit (b/d) 60,000 Selling 12,000 Dividents received 2,400
Office 1,000 Dividends received 4,000 Insurance : Office premises 2,000 Rent received 1,800
Sales deptt. 1,300 Interest on loan 1,200 Insurance : Godown 1,600
Deprepciation : Transfer fees received 2,800 Director’s fees 4,000
Office premises 2,000 Telephone charges 1,400
Delivery vans 1,500 Showroom expenses 2,400
Fees of office manager 4,000 Expenses of delivery vans 3,000
Bank charges 3,000 Preliminary expenses 4,000
Selling expenses 3,000 Interest on debentures 1,400
Sales commission 1,000 Market research expenses 1,200
Preliminary expenses 3,000 Underwriting Commission 1,200
Packing expenses 2,200 Net Profit c/d 77,800
Dividend 2,000
1,30,200 1,30,200
Discount on debentures 1,000
Net profit 40,000 [Prime Cost: Rs.2,90,000; Works Cost: Rs.2,93,600; Total Cost of production: Rs.3,19,000;
Cost of Goods Sold: Rs.2,99,000; Cost of sales: Rs.3,19,200; Profit: Rs.80,800]
68,000 68,000

[Prime Cost: Rs.1,46,000; Works Cost: Rs.1,50,000; Total Cost of production: Rs.1,60,000; Q-10: Prepare the cost sheet to show the total cost of production and cost per unit
Cost of Goods Sold: Rs.1,50,000; Cost of sales: Rs.1,59,000; Profit: Rs.41,000] of goods manufactured by a company for the month of March 2011. Also find out
the cost of sales.
Q-9: Prepare a statement of cost from the following Trading and Profit and Loss Particulars Rs.
Account : Stock of raw materials 01.04.2010 12,000
Stock of raw materials 31.03.2011 18,000
Raw materials purchased 1,12,000
Manufacturing wages 28,000
Depreciation on plant 6,000
Loss on sale of a part of plant 1,200
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Factory rent and rates 12,000 Prepare a statement giving the information about cost.
Office rent 2,000 [Prime cost: Rs.7,55,600; Factory Cost: Rs.10,32,400; Cost of production: Rs.11,43,240
General expenses 1,600 Cost of goods sold: Rs.11,43,043; Cost of sales: Rs.12,62,703; Profit: Rs.5,73297]
Discount on sales 1,200
Advertisement expenses 2,400 Q-12: Following is the information of cost of a company for the month of July :
Income-tax paid 8,000 Direct Labour Cost Rs.32,000 (160% of factory overheads)
The number of units produced during 2010-2011 was 12,000. Cost of goods sold Rs.1,12,000
The stock of finished goods was 800 and 1,600 units on 01.04.2010 and 31.03.2011 Inventory accounts showed these opening and closing balances :
respectively. The total cost of units on hand on 01.04.2010 was Rs.11,200. All July 1 July 31
these had been sold during the month. Raw Materials 16,000 17,200
[Prime Cost: Rs.1,34,000; Factory Cost: Rs.1,52,000; Cost of Production: Rs.1,55,600; Work in Progress 16,000 24,000
Closing Stock: Rs.20,752; Cost of Goods Sold: Rs.1,46,048; Cost of Sales: Rs.1,49,648] Finished Goods 28,000 36,000
Other information :
Q-11: The following particulars relating to the year 2010 have been taken from the Selling expenses 6,800
books of a chemical works manufacturing and selling a chemical mixture. General and administration expenses 4,000
Particulars Kgs. Rs. Sales for the month 1,50,000
Stock on 01.01.2010 : You are required to prepare a statement showing cost of goods manufactured and
Raw materials 2,000 4,000 sold and profit earned.
Finished mixture 500 3,500 [Adpopted B.Com Exam]
Factory stores 14,500
Purchases :
Raw materials 1,60,000 3,60,000 Book Questions
Factory stores 48,500
Sales : Illustration-1: Compute cost of raw material purchased from the data given below
Finished mixture 1,53,050 18,36,000 :
Factory scrap 16,340 Opening Stock of Raw Materials Rs.10,000
Factory wages 3,57,300 Closing Stock of Raw Materials Rs.15,000
Power 60,800 Expenses of Purchases Rs.5,000
Depreciation of machinery 36,000 Direct Wages Rs.50,000
Salaries : Prime Cost Rs.1,00,000
Factory 1,44,440 [Rs.50,000]
Office 74,440
Selling 83,000 Illustration-2: From the following information prepare cost sheet and find out the
Expenses : amount of profit :
Direct 37,000 Raw Material Purchased Rs.24,000
Office 36,400 Works Overhead Rs.20,000
Selling 36,000 Stocks :
Stock on 31.12.2010 : Raw Material as on 1st January, 2012 Rs.4,000
Raw Material 1,200 ? Finished Goods (800 Quintals) as on 1st January, 2012 Rs.3,200
Finished Mixture 450 ? Work-in-progress :
Factory Stores 11,100 1st January, 2012 Rs.960
The stock of finished mixture at the end of 2010 is to be valued at the factory cost 31st January, 2012 Rs.3,200
of the mixture for that year. Office and Administrative Overheads Rs.1,600
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Sales (Finished Goods) Rs.60,000 2012 were as follows:

Advertising discount allowed and selling cost is Re. 0.40 per quintal. During the Work-in -progress Rs.57,400
month 12,800 quintals of the commodity were produced. Raw Materials Rs.1,16,200
[Raw Material Consumed: Rs.28,000; Factory cost: Rs.45,760; The information available from cost records for the year ended 31st December,
Cost of Production: Rs.47,360; Cost of sales: Rs.56,000; Profit: Rs.4,000] 2012 was as follows :
Direct materials Rs.9,06,900
Illustration-3: Prepare cost sheet from the following data provided by Aruna Direct labour
Industries Rs.3,26,400
Ltd. for the year ending 31st March, 2012 : Freight on raw materials purchased Rs.55,700
Raw Materialssr Rs.15,000 Indirect labour Rs.1,21,600
Direct Labour Rs.9,000 Other factory overheads Rs.3,17,300
Machine Hours 900 hours Stock of raw materials on 31-12-2012 Rs.96,400
Machine Hour Rate Rs.5 Work-in-progress on 31-12-2012 Rs.78,200
Production 17,100 units Sales (1,50,000 units) Rs.30,00,000
Sales 16,000 units Indirect materials
Selling Price per unit Rs.4 Rs.2,13,900
Selling overhead per unit 50 paise There are 15,000 units of finished stock in hand on 31st December, 2012.
Office overheads 20% of works cost You are required to prepare a statement of cost and profit for 2012 assuming that
[Prime Cost: Rs.24,000; Factory cost: Rs.28,500; Cost of Production: Rs.34,200 opening stock of finished goods is to be valued at the same cost per unit as the
Cost of sales: Rs.40,000; Profit: Rs.24,000; Sales: Rs.64,000] finished stock at the end of the period.
[Prime Cost: Rs.13,08,800; Cost of Production: Rs.19,40,800
Illustration-4: Mr. A furnishes the following data relating to the manufacture of a Cost of Goods Sold: Rs.18,19,500; Profit: Rs.11,80,500; Sales: Rs.30,00,000]
standard product during the month of January, 2012 :
Raw Materials purchased Rs.15,000 Illustration-6: Calculate the Prime cost, Factory cost, Total cost of production
Opening Stock of Raw Materials Rs.4,000 and Cost of sales from the following particulars: Rs.
Closing Stock of Raw Materials Rs.5,000 Raw-Materials consumed 40,000
Direct Labour Cost Rs.9,000 Wages paid to labourers 10,000
Machine Hours worked 900 hours Directly chargeable expenses 2,000
Machine Hour Rate Rs.5 Oil & Waste 100
Carriage Inwards Rs.1,000 Wages of Foremen 1,000
Administrative Overheads 20% on Works Cost Storekeepers’ Wages 500
Selling Overheads 50 Paise per unit sold Electric Power 200
Units produced 17,100 Lighting :
Opening Stock of Finished Products 2,000 units @ Rs.1.50 per unit Factory 500
Units sold 16,000 units Office 200 700
Selling Price per unit Rs.4 Rent :
You are required to prepare : Factory 2,000
(i) Cost Sheet, (ii) a Statement showing Profit for the per. Office 1,000 3,000
[Prime Cost: Rs.24,000; Factory cost: Rs.28,500; Cost of Production: Rs.34,200 Repairs & Renewals :
Cost of sales: Rs.40,000; Profit: Rs.24,000; Sales: Rs.64,000] Factory Plant 500
Machinery 1,000
Illustration-5: Vijay Industries manufactures a product X On 1st January, 2012 Office Premises 200 1,700
there were 5,000 units of finished product in stock. Other stocks on 1st January,
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Depreciation : Q-1:Find out the cost of Raw Materials Purchased from the data given below
Office Premises 500 mentioned information :
Plant & Machinery 200 700 Prime Cost Rs.2,00,000
Consumable Stores 1,000 Closing Stock of Raw Material Rs.20,000
Manager’s Salary 2,000 Direct Labour Cost Rs.1,00,000
Directors’ Fees 500 Expenses on Purchases Rs.10,000
Office Printing & Stationery 200 [Rs.1,10,000]
Telephone Charges 50
Postage & Telegrams 100 Q-2: From the following prepare a Cost Sheet :
Salesmen’s Commission & Salary 500 Raw materials Rs.6,000
Travelling Expenses 200 Direct Wages Rs.5,000
Advertising 500 Factory Overheads Rs.2,400
Warehouse Charges 200 Opening Stock of finished goods (200 kgs) Rs.800
Carriage Outward 150 Closing Stock of finished goods (400 Kgs) ?
[Prime Cost: Rs.52,000; Factory cost: Rs.59,000 Sale of finished product (3,000 Kgs) Rs.20,000
Cost of Production: Rs.63,750; Cost of sales: Rs.65,300] Advertising & Selling Expenses Rs.1,475
Profit desired 30% on sales
Illustration-7: Calculate (a) Cost of raw-materials consumed; (b) Total cost of [Profit: Rs.6,000]
production; (c) Cost of goods sold and (d) The amount of profit from the following Q-2 (New Book): From the following prepare a Cost Sheet :
particulars : Rs. Raw materials Rs.6,000
Opening Stock : Direct Wages Rs.5,000
Raw-materials ... 5,000 Factory Overheads Rs.2,400
Finished goods ... 4,000 Opening Stock of finished goods Rs.800 [200 kg.]
Closing Stock : Closing Stock of finished goods ? [400 kg.]
Raw-materials ... 4,000 Sale of finished product Rs.20,000 [3,000 kg.]
Finished goods ... 5,000 Advertising & Selling Expenses Rs.1,475
Raw-materials-purchased ... 50,000 Profit desired 30% on Sales
Wages paid to labourers ... 20,000 [Profit: Rs.6,000]
Chargeable expenses ... 2,000
Rent, rates and taxes ... 5,000 Q-3. Compute manufacturing expenses from the data given below :
Power ... 2,400 Opening Stock of Raw Material Rs.5,000
Factory heating and lighting ... 2,000 Purchases Rs.25,000
Factory insurance ... 1,000 Expenses on Purchases Rs.1,000
Experimental expenses ... 500 Direct Wages Rs.20,000
Sale of wastage of material ... 200 Direct Expenses Rs.1,000
Office management salaries ... 4,000 Closing Stock of Raw Materials Rs.7,000
Office printing and stationery ... 200 Manufacturing Cost Rs.80,000
Salaries of salesman ... 2,000 [Rs.35,000]
Commission of travelling agents ... 1,000
Sales ... 1,00,000 Q-4:Classify the following expenses in any of these categories (i) Production
[Prime Cost: Rs.72,800; Factory cost: Rs.83,700; Cost of Production: Rs.87,900 overhead, (ii) Ad nistration overhead, (iii) Selling overhead, (iv) Distribution
Cost of Goods Sold: Rs.86,900; Cost of Sales: Rs.89,900; Profit: Rs.10,100] overhead, (v) Production, administration and selling-all, (vi) None of the above :
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Rs. Q-6: From the following particulars prepare a cost sheet showing the total cost
Worker’s canteen and welfare expenses 1,500 per tonne for the perioid ended 31st Dec., 2007 :
Bank interest 1,200 Particulars Rs. Particulars Rs
Expenses of capital issues 10,000 Raw-Materials 33,000 Directors’ fees (office) 2,000
Godown expenses 1,000 Productive wages 35,000 Factory cleaning 500
Expenses of branch establishments 500 Direct expenses 3,000 Sundry office expenses 200
Depreciation 2.000 Unproductive wages 10,500 Estimating 800
Carriage inward on materials purchased (not included in the cost of material) 1,250 Factory rent and taxes 7.500 Factory stationery 750
Losses on sale of capital insurance 15,000 Factory lighting 2,200 Office stationery 900
Salary of directors 6,000 Factory heating 1,500 Factory insurance 1,100
Office rent, rates and insurance 500 Motive power 4.400 Office insurance 500
Expenses for estimating tender price 1,300 Haulage 3,000 Legal expenses 400
Carriage outwards 750 Directors’ fees (works) 1,000 Rent of warehouse 300
Consumable stores 2,000 Depreciation of : Upkeeping of delivery vans 700
Audit fees 250 — Plant and Machinery 2,000 Bank charges 50
Expenses of sales office 1,100 — Office Building 1,000 Commission on sales 1,500
Wages of delivery vans 2,000 — Delivery Vans 200 Loose tools written off 600
Cost of abnormal waste of material 5,000 Bad debts 100 Rent and taxes (Office) 500
Factory lighting and rent 1,000 Advertising 300 Water supply 1,200
Municipal taxes in respect of factory’buildings 500 Sales Department salaries 1,500
Printing and stationery-sales 225 The total output for the period has been 10,000 tonnes.
Cost of training new workers 2.300 [Prime Cost: Rs.71,000; Works Cost: Rs.1,08,050; Office Cost: Rs.1,13,600
[(i) Rs.10,550; (ii) Rs.7,250; (iii) Rs.1,625; (iv) Rs.3,750; (v) Rs.23,175; (vi) Rs.31,200] Total Cost: Rs.1,18,200; Cost per tonne: Rs.11.82]

Q-5: Below is the enumerated expenditure in the manufacture of a product : Q-6 (New Book): From the following information prepare a cost sheet :
Rs. Cost of materials .... .... .... .... Rs.15 per unit
Raw Materials 28,000 Labour cost .... .... .... .... Rs.7 per unit
Fuel 6,900 Factory overheads .... .... .... .... Rs.40,000
Electric power 1,340 Administration overheads .... .... .... .... Rs.40,000
Process and general wages 63,500 Selling overheads .... .... .... .... Rs.2.50 per unit sold
Repairs 2,400 Opening stock of finished goods .... .... .... .... 500 units @ Rs.20
Haulage 1,060 Closing stock of finished goods .... .... .... .... 250 units
Light and water 400 Sales .... .... .... .... 10,250 units
Rent 2,000 Profit .... .... .... .... 20% on sales
Rates and insurance 300 [Sales Rs.4,10,156, Selling Price per unit Rs.40.15]
Office salaries and general expenses 7,000
Administration (office) 5,000 Q-7: Prepare the cost sheet to show the total cost of production and cost per unit
Depreciation on Machinery 2,500 of goods manufactured by a company for the month of July 2012. Also find out the
1,20,000 cost of sales.
Quintals manufactured 17,200 Particulars Rs
Stock of raw-materials 1-7-2012 3,000
Prepare a cost-sheet showing the cost per each item of expenses and the total
Raw-materials purchased 28,000
cost per quintal.
Stock of raw-materials 31-7-2012 4,500
[Prime Cost: Rs.91,500; Works Cost: Rs.1,08,400; Total Cost: Rs.1,20,400]
 (15) (16)

Single or Output Costing

Manufacturing wages 7,000
Depreciation on plant 1,500 Illustration 6.1: A B C Ltd. is manufacturing refrigerators and following details
Loss on sale of a part of plant 300 are furnished in respect of its factory operations for the year ended 31.12.2016 :
Factory rent and rates 3,000 Rs.
Office rent 500 Work-in-progress (01.01.2016)
General expenses 400 At Prime Cost 54,000
Discount on sales 300 Manufacturing Expenses 15,000 66,000
Advertisement expenses to be charged fully 600 Work-in-progress (31.12.2016)
Income-tax paid 2,000 At Prime Cost 45,000
The number of units produced during July 2012 was 3,000. The stock of finished Manufacturing Expenses 9,000 54,000
goods was 200 and 400 units on 1-7-2012 and 31-7-2012 respectively. The total Stock of Raw Materials (01.01.2016) 2,25,000
cost of units on hand on 1-7-2012 was 2,800. All these had been sold during the Purchase of Raw Materials 4,77,000
month. Direct Labour 1,71,000
[Prime Cost: Rs.33,500; Factory Cost: Rs.38,000; Cost of Production: Rs.38.900 Manufacturing Expenses 84,000
Cost of Sales: Rs.37,416] Stock of Raw Materials (31.12.2016) 2,04,000
On the basis of the above data, prepare a statement showing the cost of production.
Also indicate separately the amount of manufacturing expenses which enter into
the cost of production.
[Prime Cost: Rs.6,75,000; Cost of Production: Rs.7,65,000]

•••••••••••••••••••••• Illustration 6.2: From the following prepare a cost sheet and quote a suitable
price:
Total production ..... 5,000 tons
Cost of raw materials ..... Rs.20,00,000
Carriage inwards ..... Rs.2,00,000
Direct wages ..... Rs.20,00,000
Indirect wages ..... Rs.1,00,000
Office expenses ..... Rs.10,00,000
Selling overheads ..... Rs.10,00,000
Payment of income tax ..... Rs.3,00,000
Dividend paid ..... Rs.5,00,000
Desired profit margin on cost ..... 50%
[B.Com (Pass) Delhi]
[Prime Cost: Rs.42,00,000; Factory Cost: Rs.43,00,000; Cost of Production: Rs.53,00,000
Cost of Sales: Rs.63,00,000; Sales: Rs.95,50,000]

Illustration 6.3: The following extract of costing information relates to commodity

‘A’ for the half-year ending 31st December, 2016 : Rs.
Purchase of Raw materials ..... ..... 1,20,000
Factory Rent, Rates and Insurance ..... ..... 8,000
Carriage Inwards ..... ..... 1,440
Other Factory Overheads ..... ..... 40,000
Direct Wages ..... ..... 1,00,000
 (17) (18)

Stock on 1st July, 2016 Consumable materials :

Raw Materials ..... ..... 20,000 Opening stock ...... Rs.10,000
Finished Products (1 000 tonnes) ..... ..... 15,000 Purchases ...... Rs.85,000
Stock on 31st December, 2016 Closing stock ...... Rs.4,000
Raw Materials ..... ..... 22,240 Direct wages ...... Rs.20,000
Finished Products (2,000 tonnes) ..... ..... 32,000 Other direct expenses ...... Rs.10,000
Work-in-progress : Factory overheads ...... 100% of Direct
on 1st July, 2016 ..... ..... 4,800 Office overheads ...... 10% of Works Cost
on 31st Dececember, 2016 ..... ..... 20,000 Selling and distribution expenses ...... Rs.2 per unit sold
Sales of Finished Products ..... ..... 2,99,000 Units of finished product :
Administration Overheads ..... ..... 4,000 At the beginning of the period (Rs.16,000) ...... 1,000
Advertising, discounts allowed and selling costs are Re.1 per tonne. 16,000 Produced during the period ...... 10,000
tonnes of commodity were produced during the period. At the end of the period ...... 2,000
You are required to ascertain (i) the net profit for the period; (ii) the net profit per Also, find out the selling price per unit on the basis that profit margin is uniformly
tonne of the commodity; (iii) the total cost of output for the period; (iv) the value of made to yield a profit of 20% of the selling price. There was no work-in-progress
raw materials used; (v) the value of the turnover of the period. either at the beginning or at the end of the period.
[(i): Rs.45,000; (ii): Rs.3; (iii): Rs.2,56,000; (iv): Rs.1,19,200; (v): Rs.2,99,000] [B. Com] [Prime Cost: Rs.1,21,000; Factory Cost: Rs.1,41,000
Cost of Production: Rs.1,51,100; Cost of Goods Sold: Rs.1,40,080
Illustration 6.4: From the following particulars, prepare a cost sheet showing the Cost of Sales: Rs.1,58,080; Sales: Rs.1,97,600]
comparative cost per tonne for both the periods :
3 months ended 3 months ended Illustration 6.6: Wilson Company produces and sells two types of pens: ‘super
31-3-2018 30-6-2018 and ‘ordinary’. You are provided the following information :
Rs. Rs. (i) Direct Materials cost of ‘super’ type pen is Rs.2 per pen and that of ‘ordinary’
Productive Wages ..... 72,000 98,000 type is Re.1 per pen.
Administrative Expenses ..... 12,000 12.000 (ii) Direct wages of super’ type pen is Re.1 per pen and that of ‘ordinary’ type is
Raw Materials ..... 36,000 49,000 50 paise per pen.
Taxes and yurance-Factory ..... 750 750 (iii) Production overheads to be charged at 100% of direct wages in both types of
Light and Water ..... 1,000 1,000 pens.
Direct Expenses ..... 9,000 12,500 (iv) Administrative overheads to be charged at 25% of works cost in both types of
Depreciation ..... 2,000 2,000 pen.
Factory Rent ..... 1,500 1,500 (v) Selling and distribution overheads is Re.1 per pen sold for both types.
Unproductive Labour ..... 30,000 41,000 (vi) Number of pens produced :
Factory Repairs ..... 3,000 4,500 Super’ type : 60,000 pens
1,67,250 2,22,250 Ordinary’ type : 1,20,000 pens
(vii) Number of pens sold :
The tonnage produced in the two quarters was 12,000 and 16,000 tonnes Super’ type : 50,000 pens
respectively. Ordinary’ type : 1,00,000 pens
[Prime Cost: Rs.1,17,000 & Rs.1,57,500; Factory Cost: Rs.1,55,250 & Rs.2,10,250 Assuming there is no work-in-progress in the beginning or at end and opening
Cost of Production: Rs.1,67,250 & Rs.2,22,250] stock of finished goods is nil, you are required to prepare a cost statement showing
the price at which the two type of pens would be marketed so as to show a profit
Illustration 6.5: Tirupati Electronics produces a standard product. The following of 20% on selling price.
information is give you from which you are required to prepare “Cost Sheet” for [Prime Cost: Rs.1,80,000 & Rs.1,80,000; Factory Cost: Rs.2,40,000 & Rs.2,40,000
the period ended on 31st March, 2018 : Cost of Production: Rs.3,00,000 & Rs.3,00,000; COGS: Rs.2,50,000 & Rs.2,50,000
Total Cost: Rs.3,00,000 & Rs.3,50,000; Sales: Rs.3,75,000 & Rs.4,37,500]
 (19) (20)

Illustration 6.7: From the following particulars, prepare a statement showing cost Illustration 6.10: From the following data prepare a cost and production statement
per cabinet and profit per cabinet sold : of Popular Stoves Manufacturing Co. for the year 2016 :
Deluxe Commercial Stock of materials on 1-1-2016 ..... Rs.35,000
Materials (Rs.) 12,400 10,600 Stock of materials on 31-12-2016 ..... Rs.4,900
Labour (Rs.) 24,600 30,250 Purchase of materials ..... Rs.52,500
Works on cost to be 100% on labour and office on cost to be 25% on works cost. Factory wages ..... Rs.95,006
There is no opening or closing stocks of cabinets. 520 Deluxe cabinets are sold Factory expenses ..... Rs.17,500
during the year at Rs.150 per cabinet, whereas the price of commercial cabinet is Establishment expenses ..... Rs.10,000
Rs.120 and the units sold were 740. Completed stock in hand on 1-1-2016 ..... Nil
What is the total profit for the year as per the above particulars ? Completed stock in hand on 31-12-2016 ..... Rs.35,000
[B.Com] [Cost per unit: Deluxe = Rs.148.08 & Commercial = Rs.120.10; Sales ..... Rs.1,89,000
Profit / (Loss) per unit: Deluxe = Rs.1.92 & Commercial = (Rs.0.10); Total Profit: Rs.925] The number of stoves manufactured during the year 2016 was 4,000. The company
wants to quote for a contract for the supply of 1,000 Electric Stoves during the
Illustration 6.8: A factory has received an order for three different types of casting year 2017. The stoves to be quoted are of uniform quality and make similar to
weighing respectively 18, 45 and 27 tonnes. 10% of the raw materials used are those manufactured in the previous year; but cost of materials has increased by
wasted in manufacturing and are sold as scrap for 20% of the cost price of raw 15% and cost of factory labour by 10%.
materials. The cost of raw materials is Rs. 250 per tonne, the wages for three Prepare a statement showing the price to be quoted to give the same percentage
types of castings are respectively Rs.4,000, Rs.10,500 and Rs.5,500. The cost of of net profit on turnover as was realised during the year 2016, assuming that the
the moulds for the three different types of castings are respectively Rs.400, Rs.500 cost per unit of overhead charges will be the same as in the previous year.
and Rs.300. If the factory overhead charges are 40% of the wages in each case,
find the cost of production per tonne of each type of casting. Illustration 6.11: A company is manufacturing building bricks and fire bricks.
[Cost of Meterial Consumed: (X) Rs.4,900; (Y) Rs.12,250; (Z) Rs.7,350 Both the products require two processes :
Prime Cost: (X) Rs.9,300; (Y) Rs.23,250; (Z) Rs.13,150 Brick Forming
Cost of Production: (X) Rs.10,900; (Y) Rs.27,450; (Z) Rs.15,350] Heat Treating
Time requirements for the two bricks are :
Illustration 6.9: The following figures are collected from the books of an Iron Building Bricks Fire Bricks
Foundry Forming (per 100 Bricks) 3 hrs. 2 hrs.
after the close of the year : Heat Treatment (per 100 Bricks) 2 hrs. 2 hrs.
Raw Materials : Total costs of the two departments in one month were :
Opening stock at the beginning of the year : Rs.7,000 Forming Rs.21,200
Purchases during the year : Rs.50,000 Heat treatment Rs.48,400
Closing stock at the end of the year : Rs.5,000 Production during the month was :
Direct wages : Rs.10,000 Building Bricks 1,30,000 Nos.
Works overhead : 50% of direct wages Fire Bricks 70,000 Nos.
Stores overhead on material : 10% on the cost of materials Prepare a statement of manufacturing costs for the two varieties of bricks.
10% of the castings were rejected being not upto specification and a sum of [Total Cost of Production: Building Bricks = Rs.36,400; Fire Bricks = Rs.33,600]
Rs.400 was realised on sale as scarp.10% of the finished castings were found to
be defective in manufacture and were rectified by expenditure of additional works Illustration 6.12: In respect of a factory the following figures have been obtained
overhead charges to the extent of 20% on the proportionate direct wages. The for the year 2016 :
total gross output of casting during the year was 1,000 tonnes. Cost of materials ..... ..... Rs.3,00,000
Find out the manufacturing cost of the saleable castings per tonne. Direct wages ..... ..... Rs.2,50,000
[Prime Cost: Rs.62,000; Net Factory Cost: Rs.71980] Factory overheads ..... ..... Rs.1,50.000
Administrative overheads ..... ..... Rs.1,68,000
 (21) (22)

Selling overheads ..... ..... Rs.1,12.000 Illustration 6.14: The cost of manufacturing 5,000 units of a commodity comprises:
Distribution charges ..... ..... Rs.70,000 Materials : Rs.20,000
Profit ..... ..... Rs. 2,10,000 Wages : Rs.25,000
A work order has been executed in 2017 and the following expenses have been Chargeable expenses : Rs.400
incurred : Materials Rs. 4,000 and Wages Rs. 2,500. Fixed Overheads : Rs.16,000
Assuming that in 2017 the rate of factory charges has increased by 20%, Variable Overheads : Rs.4,000
distribution charges have gone down by 10% and selling and administration For manufacturing every 1,000 extra units of the commodity the cost of production
charges have each gone by 12 1/2%. increases as follows :
At what price should the product be sold so as to earn the same rate of profit on Materials : proportionately
the selling price as in 2016 ? Wages : 10% less than proportionately
Factory overheads is based on direct wages, while all other overheads are based Chargeable expenses : No extra cost
on factory cost. Fixed overheads : Rs.200 extra
[Profit on Cost: 20%; Total cost of work order: Rs.12,782 Variable overheads : 25% less than proportionately
Sale Value of work order: Rs.15,338] Calculate the estimated cost of producing 8,000 units of the commodity and show
by how much it would differ if a flat rate of factory overhead based on wages were
Illustration 6.13: Pleasant Cold Limited manufactured and sold 1,000 refrigerators charged.
in the 2017. The summarised Trading and Profit and Loss A/c is set out below : [Prime Cost: Rs.70,900; Total Cost: Rs.93,300]

Particulars Rs. Particular Rs. Illustration 6.15: The Fancy Toys Co. are manufacturers of two types of toys, ‘X’
To Cost of materials 80,000 By Sales 4,00,000 and ‘Y’. The manufacturing cost for the year ended 31.12.2016 were :
To Direct wages 1,20,000
To Manufacturing expenses 50,000 Direct Material ..... Rs.2,00,000
To Gross Profit (c/d) 1,50,000 Direct Wages ..... Rs.1,12,000
Production Overheads ..... Rs.48,000
4,00,000 4,00,000
There was no work-in-progress at the beginning or at the end of the year. It is
To Salaries 60,000 By Gross Profit (b/d) 1,50,000 ascertained that :
To Rent, Rates and Insurance 10,000 (i) Direct materials in type x costs twice as much as direct material in type Y
To Selling expenses 30,000 (ii) The direct wages for type y were 60% of those for type X
To General expenses 20,000 (iii) Production Overhead was 30 paise, the same per’ toy of X and Y types
To Net Profit 30,000 (iv) Administration Overhead for each grade was 200% of direct labour
(v) Selling Cost was 25 Paise per toy for each type of toy
1,50,000 1,50,000
(vi) Production during the year was :
For the year ending 31st March, 2018 it is estimated that : Type X : 40,000 toys of which 36,000 were sold
(1) Output and sales will be 1,200 refrigerators. Type Y : 1,20,000 toys of which 1,00,000 were sold
(2) Prices of raw materials will rise by 20% on the previous year’s level. (vii) Selling prices were Rs.7 per toy for type X and Rs.5 per toy for type Y
(3) Wages rates will rise by 5%. Prepare a statement showing the total cost per toy for each type of toy and the
(4) Manufacturing cost will rise in proportion to the combined cost of materials profit made on each type of toy.
and wages. [Cost per toy: (X) Rs.5.50; (Y) Rs.3.35; Profit per toy: (X) Rs.1.45; (Y) Rs.1.65]
(5) Selling cost per unit will remain unchanged.
(6) Other expenses will remain unaffected by the rise in output. Illustration 6.16*: Honesty Engineering Works has a machining shop in which it
Your are required to submit a statement for the Board of Directors showing the manufacturers two Auto parts P 1 and P2 out of forging F 1 and F2 .
price at which the refrigerator should be marketed so as to show a profit of 10% For the quarter ending December 206, following cost data are available :
on selling price.
[Rs.425]
 (23) (24)

Rs. Works Overheads ..... ..... Rs.7,000

Consumption of Raw Materials Office Overheads ..... ..... Rs.2,800
F1 1,50 000 Selling Overheads ..... ..... Rs.3,200
F2 2,00,000 3,50,000 Profit ..... ..... Rs.5,000
Wages and Salaries 1,53,000 You ascertain that 40% of the works overheads fluctuate directly with production
Stores & Spares 12,000 and 70% of the selling overheads fluctuate with sales. It is anticipated that the
Repairs & Maintenance 15,000 department would produce 500 units per annum and that direct labour charges
Power 16,000 per unit will be reduced by 20% while fixed works overheads charges will increase
Insurance 8,000 by Rs. 3,000. Office overheads and fixed selling overheads charges are expected
Depreciation 50,000 to show an increase of 25% but otherwise no changs are anticipated.
Other Factory Overheads 68,000 [Prime Cost: Rs.98,000; Factory Cost: Rs.1,19,200
Administrative Overheads 64,400 Cost of Production: Rs.1,22,700; Cost of Sales: Rs.1,35,100; Sales: Rs.1,54,968]
Distribution Overheads 75,000
Your are given following further information : Illustration 6.18: From the following particulars, prepare a cost sheet of a Brick
(i) Production and Sale of P 1 and P2 were as under : Works indicating cost and profit per 1,000 bricks :
P1 P2 Wages (Clay getting, drying, setting etc.) : Rs. 75,000
Production (Pcs) 6,000 4,000 Coal (Costing Rs.7.50 per tonne) : 5,000 tonnes
Sale of above pieces (Rs.) 4,80,000 5,20,000 Royalties : 75 Paise per 1,000 bricks
(ii) Direct wages paid were Rs.36,000 in case of P 1 and Rs.32,000 for P 2. This Depreciation of Plant and Machinery : 10% of capital outlay of Rs.1,50,00
basis is used for apportioning Wages and Salaries and Factory Overheads. Removal of over burden : 50 paise per 1,000 bricks
(iii) Following machine hours were utilized in production of these products : Works overhead : 10% of wages and coal
P1 550 Hours Office overhead : 5% of wages and coal
P2 450 Hours Bricks made (allow for waste 1.5 % of output) : 1,01,52,284 Bricks
(iv) Stores & Spares, Repairs & Maintenance, Power, Insurance and Depreciation Bricks sold (Price: Rs. 20 per 1,000 Bricks) : 80,00,000 Bricks
are charged to cost of both the products on the basis of machine hours used. Stock of bricks (Opening) : 20,00,000 Bricks
(v) Administrative overheads are apportioned on the basis of respective Stock of bricks (Closing) : 40,00,000 Bricks
conversion costs while Distribution overheads on the basis of their sales [Prime Cost: Rs.1,20,000; Factory Cost: Rs.1,51,250
realisations. Cost of Production: Rs.1,56,875; Cost of Goods Sold: Rs.1,25,000; Profit: Rs.35,000]
(vi) All the production was sold out.
You are required to prepare cost sheets of both the products and work out profit Illustration 6.19: A factory’s normal capacity is 1,20,000 units per annum. The
earned on each of them. estimated costs of production are as under :
[Prime Cost: P1 = Rs.1,86,000; P2 = Rs.2,32,000; Factory Cost: P1 = Rs.3,22,550; P2 = Rs.3,49,450 Direct material Rs. 3 per unit; Direct labour Rs. 2 per unit (Subject to a minimum
Cost of Sales: P1 = Rs.3,93,060; P2 = Rs.4,18,340; Profit: P1 = Rs.86,940; P2 = Rs.1,01,660] of Rs.12,000 p.m.) Indirect expenses — Fixed Rs.1,60,000 per annum; Variable
2 per unit; Semi-variable Rs.60,000 upto 50% capacity and additional 20,000 for
Illustration 6.17: The Managing Director of a small manufacturing concern consults every 20% increase in capacity or any part thereof. Each unit of raw material
you as to the minimum price at which he can sell the output of one of the yields scrap which is sold at the rate of 20 paise per unit. In 2016, the factory
departments of the company which is intended for mass production in future. The worked at 50% capacity for the first three months but it was expected that it would
company’s records show the following particulars for the department for the past work at 80% capacity for the remaining 9 months. During the first three months,
year : the selling price per unit was Rs.12. What should be the price in the remaining
Production and Sales ..... ..... 100 units nine months to produce a total profit of Rs.2,18,000 ?
Materials ..... ..... Rs.13,000 [Rs.12.30]
Direct Labour ..... ..... Rs.7,000
Direct Charges (variable) ..... ..... Rs.1,000 Illustration 6.20*: The following are The balances of the Impersonal Ledger of a
colliery relating to revenue at the end of the year :
 (25) (26)

Wages paid for coal production ..... ..... Rs.5,80,000 To Spinning Fuel 36,050
Coal for colliery consumption ..... ..... Rs.45,000 To Weaving Fuel 22,400
Timber used in coal production ..... ..... Rs.64,000 To Gross Profit 57,750
Ropes used in coal production ..... ..... Rs.12,000
Stores used in coal production ..... ..... Rs.76,000 14,77,700 14,77,700
Royalties paid ..... ..... Rs.42,000 In the above Manufacturing Account (where the closing stock of yarn and cloth is
General charges ..... ..... Rs.70,000 taken at actual cost) it is contended by the income-tax authorities that the closing
Salaries ..... ..... Rs.36,000 stock is valued below cost price in order to suppress the profit actually made.
Coal Sold (including colliery: 1,12,000 tonnes) ..... ..... Rs.8,84,000 For the satisfaction of the authorities, you are required to prepare from the above
Wages paid for coke making ..... ..... Rs.50,000 Manufacturing Account, a separate Yarn Production Account and a separate
Stores used for coke making ..... ..... Rs.37,000 Cloth Production Account, showing the following details :
Salaries for coke making ..... ..... Rs.8,000 (a) Gross Profit of the department.
Coke sold (43,500 tonnes) ..... ..... Rs.5,40,000 (b) Total quantity produced (Indicating opening stock)
The stock of coal at the beginning of the year amounted to 7,000 tonnes valued at (c) Total cost of production (Including the value of the opening stock which was at cost)
Rs.5 pe tonne and at the end of the year 15,000 tonnes valued at the same rate. (d) Cost of production per pound (including the quantity of the opening stock in total
The stock of coke at the beginning of the year amounted to 2,000 tonnes valued quantity and the cost of opening stock in total cost)
at Rs.10 per tonne and at the end of the year 500 tonnes valued at the same rate. In manufacturing cloth 6,72,000 lbs. of yarn were consumed which are to be
The total production of the colliery was 1,85,000 tonnes of coal and 42,000 tonnes adjusted at actual cost arrived at in the manner stated above.
of [Total Cost of Production: (Yarn) Rs.10,41,250; (Cloth) Rs.10,64,700
coke; 65,000 tonnes of coal being used for coke-making. Gross Profit: (Yarn) Rs.10,500; (Cloth) Rs.47,250]
Prepare separate Production Accounts for coal and coke showing the cost of
each item expenses per tonne of coal and coke respectively, taking coal used for Illustration 6.22*: A manufactures a standard article in three quantities of which
coke making at cost Price. the
[Total Cost of Production: (Coal) Rs.9,25,000; (Coke) Rs.4,20,000 production during the year 2016 was :
Profit on Sales: (Coal) Rs.3,24,000; (Coke) Rs.1,05,000] Quality A : 500 articles
Quality B : 1,000 articles
Illustration 6.21*: The Cloth and Yarn Manufacturing Account of the Malwa Mills Quality C : 1,200 articles
Ltd. for the year ended 31st December, 2006, is set out below : The stock of finished Goods of 1st January, 2016 were :
Particulars Rs. Particular Rs. Quality A : 60 articles
To opening Stock : Quality B : 40 articles
Yarn (44,800 Ibs.) 33,600 By Sale (2,24,000 Ibs. of waste Quality C : 76 articles
Cloth (88,200 Ibs.) 88,200 being that portion of 11,53,600 Sales made during the year 2006 were :
To Cotton Consumed 9,01,250 Ibs. of cotton, as per contract Quality A : 510 articles (at the rate of Rs.60)
(11,53,600 lbs.) which could not be utilised in Quality B : 960 articles (at the rate of Rs.67.50)
To Spinning wages 57,050 yarn manufuctured) 28,000 Quality C : 1,248 articles (at the rate of Rs.75)
To Weaving wages 91,700 By Yarn sales (1,68,000 Ibs.) 1,89,000 The following figures in respect of the year, were extracted from the books of
To Stores consmed (In spinning By cloth Sales (7,56,000 Ibs.) 8,97,750 accounts:
which increased the yarn by By Closing Stock : Work-in-progress on 1st January, 2016 ..... ..... Rs.15,000
5,600 lbs. in weight) 41,300 Yarn (140,000 Ibs.) 1,48,750 Work-in-progress on 31st December, 2016 ..... ..... Rs.18,000
To Stores and sizing material Cloth (1,90,400 Ibs.) 2,14,200 Cost of Raw Materials used in manufacture ..... ..... Rs.43,500
consumed (in weaving which Cost of Stores used in manufacture ..... ..... Rs.6,000
increased cloth by 1,86,000 Manufacturing Wages ..... ..... Rs.78,000
Ibs. in weight 1,48,400 Depreciation Works ..... ..... Rs.9,000
Works Overheads ..... ..... Rs.16,500
 (27) (28)

From the above particulars, prepare Manufacturing & Trading Account for the Drawing Office Salaries ..... ..... 9,600
year, showing the amount of Gross Profit carried to Profit & Loss A/c; assume that Counting House Salaries ..... ..... 14,000
the percentage rate of Gross Profit is the same for all the three kinds of articles. Carriage Inwards ..... ..... 8,200
[Cost of Production: (A) Rs.24,000; (B) Rs.54,000; (C) Rs.72,000; Gross Profit: Carriage Outwards ..... ..... 5,100
Rs.37,800] Cash Discounts allowed ..... ..... 3,400
Bad Debts written off ..... ..... 4,700
Repairs of Plant, Machinery and Tools ..... ..... 10,600
PRACTICAL PROBLEMS Rent, Rates, Taxes and Insurance (Factory) ..... ..... 3,000
Rent, Rates, Taxes and Insurance (Office) ..... ..... 1,000
Q-1: From the books of accounts of M/s. Aryan Enterprises, the following details Travelling Expenses ..... ..... 3,100
have been extracted from the year ending 31.03.2016 : Rs. Traveller’s Salaries and Commission ..... ..... 8,400
Opening Stock of Material ..... ..... 1 88,000 production Wages ..... ..... 1,40,000
Closing Stock of Material ..... ..... 2,00,000 Depreciation written off on Machine, Plant & Tools ..... ..... 7,100
Materials Purchased during the year ..... ..... 8,32,000 Depreciation written off on Furniture ..... ..... 600
Direct Wages paid ..... ..... 2,38,400 Directors’ Fees ..... ..... 6,000
Indirect Wages ..... ..... 16,000 Gas and Water Charges (Factory) ..... ..... 1,500
Salaries to administrative Staff ..... ..... 40,000 Gas and Water Charges (Office) ..... ..... 300
Freight Inward ..... ..... 32,000 General Charges ..... ..... 5,000
Freight Outward ..... ..... 20,000 Manager’s Salary ..... ..... 12,000
Cash Discounts allowed ..... ..... 14,000 Out of 48 working hours in a week, the time devoted by the manager to the factory
Bad Debts Written off ..... ..... 18,800 and office was on average 40 hours and 8 hours respectively throughout the
Repairs to Plant and Machinery ..... ..... 42,400 accounting year. Prepare a statement giving the following information:
Rent, Rates and Taxes (Factory) ..... ..... 12,000 (a) Prime Cost
Rent, Rates and Taxes (Office) ..... ..... 6,400 (b) Factory overheads and percentage on production wages.
Travelling Expenses ..... ..... 12,400 (c) Factory Cost
Salesmen’s Salaries and Commission ..... ..... 33,600 (d) Office overheads and the percentage on factory cost.
Depreciation on Plant & Machinery ..... ..... 28,400 (e) Total Cost
Depreciation on Furniture ..... ..... 2,400 [(a) Prime Cost: Rs.3,53,200 (b) Factory Overheads: Rs.41,800 & 29.85%
Director’s Fees ..... ..... 24,000 (c) Factory Cost: Rs.3,95,000; (d) Total Cost: Rs.4,45,200]
Electricity Charges (factory) ..... ..... 48,000
Fuel (for boiler) ..... ..... 64,000 Q-3: The following information has been obtained from the records of Left Centre
General Charges ..... ..... 24,800 Corporation for the period from June 1 to June 30, 2016 : Rs.
Manager’s Salary ..... ..... 48,000 Cost of raw materials on 1 June, 2016 ..... ..... 30,000
The Manager’s time is shared between the factory and the office in the ratio of Purchase of raw materials during the month ..... ..... 4,50,000
20 : 80. From the above details you are required to prepare : Wages paid ..... ..... 2,30,000
(a) Prime Cost; (b) Factory Overhead; (c) Factory Cost; (d) General Overhead; Factory overhead ..... ..... 92,000
(e) Total Cost. Cost of work-in-progress on June 1, 2016 ..... ..... 12.000
[(a) Rs.10,90,400; (b)Rs.2,20,400; (c) Rs.13,10,800; (d) Rs.2,20,800; (e) Rs.15,31,600] Cost of raw materials on June, 30, 2016 ..... ..... 25,000
Cost of work-in-progress on June 30, 2016 ..... ..... 15,000
Q-2: The following particulars have been extracted from the books of M. Cost of stock of finished goods on June 1, 2016 ..... ..... 60,000
Manufacturing Co. Ltd., Calcutta for the year ended 31.03.2016 : Rs. Cost of stock of finished goods on June 30, 2016 ..... ..... 55,000
Stock of Materials as on 31.03.2015 ..... ..... 47,000 Selling and distribution overheads ..... ..... 20,000
Stock of Materials as on 31.03.2016 ..... ..... 50,000 Sales ..... ..... 9,00,000
Materials purchased ..... ..... 2,08,000 Administration overheads ..... ..... 30,000
 (29) (30)

Prepare (i) Statement of cost of production of goods manufactured and (ii) Q-7: The following data relate to the manufacture of standard product during the
Statement of cost of production of finished goods sold. four week ending on 28th October 2016 :
[Cost of production: Rs.8,04,000; Cost of goods sold: Rs.8,09,000 Raw materials consumed ..... ..... Rs.20,000
Note: Selling expenses will be considered, while ascertaining cost of sales] Direct wages ..... ..... Rs.12,000
Machine hours worked ..... ..... 950 (hrs.)
Q-4: A firm has purchased a plant to manufacture a new product, the cost data for Machine hour rate ..... ..... Rs.2.00
which is given below : Office overhead ..... ..... 15% on Works Cost
Estimated Annual Sales ..... ..... 24,000 units Selling overhead ..... ..... Re.0.37 per unit
Estimated Costs Units produced ..... ..... 20,000
Material ..... ..... Rs.4.00 per unit Units sold @ Rs.2.50 each ..... ..... 18,000
Direct Labour ..... ..... Re.0.60 per unit Prepare a statement from the above showing :
Overheads ..... ..... Rs.24,000 per year (a) The cost of production per unit, (b) The profit for the period
Administrative Expenses ..... ..... Rs.28,800 per year [(a)Rs.1.949; (b) Rs.3,258]
Selling Expenses ..... ..... 15% of Sales
Calculate the selling price if profit per unit is Rs.1.02 Q-8: The Inter Co. Ltd. has received an enquiry for the supply of 10,000 steel
[9.20] folding chairs.The costs are estimate as under :
Raw materials ..... ..... 1,00,000 kgs. at Re.1 per kg
Q-5: Prepare a cost sheet from the following data to find out profit and cost per Direct Wages ..... ..... 10,000 hours at Rs.4 per hour
unit: Variable overheads
Raw Materials consumed ..... ..... Rs.1 60,000 Factory ..... ..... Rs.2.40 per labour hour
Direct Wages ..... ..... Rs.80,000 Selling and distribution ..... ..... Rs.16,000
Factory Overheads ..... ..... 20% of Direct Wages Fixed overheads :
Office Overheads ..... ..... 10% of Factory Cost Factory ..... ..... Rs. 6,000
Selling Overheads ..... ..... Rs.12,000 Selling and Distribution ..... ..... Rs.14,000
Unit Produced ..... ..... Rs.4,000 Prepare statement showing the price to be fixed which will result in profit of 20 per
Units Sold ..... ..... Rs.3,600 cent on selling price.
Selling Price ..... ..... Rs.100 per Unit [Selling price per chair Rs.25]
[Prime Cost Rs.2,40,000; Factory Cost Rs.2,56,000; Cost of Production Rs.2,81,600
Cost of sales Rs.2,65,440; Profit Rs.94,560] Q-19: The following details have been obtained from the cost records of Comet
Paints Limited : Rs.
Q-6: You are accountant of Indias Structurals Ltd. The Contract Department seeks Stock of Raw materials on 1st September, 2016 ..... ..... 75,000
your advice about the quotation to be submitted in a tender for 1,000 tonnes of Stock of Raw materials on 30th September, 2016 ..... ..... 91,500
structural material. Following figures are available to you for the purpose : Direct Wages ..... ..... 52,500
Output of structural material per year ..... ..... 20,000 tonnes Indirect Wages ..... ..... 2,750
Yearly consumption of raw materials ..... ..... Rs.2,00,00,000 Sales ..... ..... 2,11,000
Yearly Wage bill ..... ..... Rs.2,50,00,000 Work-in-progress on 1st September, 2016 ..... ..... 28,000
Yearly Depreciation of Plant ..... ..... Rs.50,00,000 Work-in-progress on 30th September, 2016 ..... ..... 35,000
Annual Dividend to Shareholders ..... ..... Rs.30,00,000 Purchase of Raw Materials ..... ..... 66,000
Income-tax (annual) ..... ..... Rs.50,00,000 Factory Rent, Rates and Power ..... ..... 1,55,000
Remunerationof Managing Director for a year ..... ..... Rs.1,00,000 Depreciation on Plant and Machinery ..... ..... 3,500
The Company adds 20% to its cost as its margin of profit. Expenses on purchases ..... ..... 1,500
Tender your advice about the per tonne rate to be quoted. Carriage Outwards ..... ..... 2,500
[Rs.3,306 per tonne] Advertising ..... ..... 3,500
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Office Rent and Taxes ..... ..... 2,500 Direct Expenses :

Traveller’s Wages and Commission ..... ..... 6,500 Special equipments ..... ..... Rs.10,000
Stock of Finished Goods on 1st September, 2016 ..... ..... 54,000 Special Dyes ..... ..... Rs.5,000
Stock of Finished Goods on 30th September, 2016 ..... ..... 31,000 Works Overheads :
Prepare a Production Account giving the maximum possible break-up of costs Variable ..... ..... 100% on direct wages.
and profit. Fixed ..... ..... 50% on direct wages.
[Prime Cost: Rs.1,03,500; Works Cost: Rs.1,17,750; Cost of goods sold: Rs.1,43,250 Office and administrative overhead ..... ..... 10% on works cost.
Cost of Sales: Rs.1,55,750; Profit: Rs.55,250] Selling and distribution overhead ..... ..... 20 % on Cost of production
Finished paper manufactured ..... ..... 1,000 tonnes
Q-10: In a Brass Foundary, three types of Building accessories, namely A, B and Credit on account of sale of waste ..... ..... Rs.2,000
C, are manufactured involving complicated designs. Each type is manufactured The scrap value of the special equipment after utilisation in manufacture is nil.
from the same mixture of molten brass but requires skilled labour and care in [218.13]
moulding each type. Draw up a cost sheet in appropriate form, showing the cost
of production per quintal of each type of products, A, B and C with reference to the Q-12: You are the chief of the Cost Accounting Department of Leather Products
following data: India Ltd. Your organisation manufactures shoes. The following figures have
Direct Material been extracted from the account books relating to the production of shoes for the
(a) Brass ingots 200 quintals at Rs.800 per quintal. year 2017 :
(b) Coke-50 quintals at Rs.15 per quintal. Expenditure Head Amount (in Rs.)
(c) Cupola labour-20 men at Rs.5 per day for 1 day.
(d) Depreciation on Melting Furnace Equipments at Re. 1 per quintal of ingot Raw materials consumed (including abnormal wastages of Rs.10,000) 5,10,000
melted. Molten brass taken out of the cupola is distributed 50% to A, 30% to B and Direct Wages paid ..... ..... ..... ..... 4,00,000
20%to C. Factory Overheads ..... ..... ..... ..... 1,00,000
Direct Labour Tools consumed ..... ..... ..... ..... 10,000
A : 220 men at Rs.5 per day for 1 day Depreciation of Machines (Factory) ..... ..... ..... ..... 5,000
B : 250 men at Rs.7 per day for 1 day Machines Imported ..... ..... ..... ..... 1,00,000
C : 150 men at Rs.8 per day for 1 day Works Expenses (Misc.) ..... ..... ..... ..... 50,000
Factory overheads Office Expenses ..... ..... ..... ..... 25,000
A : 100 per cent of Direct Labour Overheads for Office ..... ..... ..... ..... 40,000
B : 200 per cent of Direct Labour Managing Director’s Salary ..... ..... ..... ..... 50,000
C : 300 per cent of Direct Labour Stationery & Printing etc. (office) ..... ..... ..... ..... 5,000
General overheads Depreciation of Materials (office) ..... ..... ..... ..... 1,000
10% of Works Cost Selling and Distribution expenses ..... ..... ..... ..... 25,000
Assume no loss in melting and no rejection in moulding. Entertainment of buyers ..... ..... ..... ..... 20,000
[A: Rs.90,777.50; B: Rs.58,921.50; C: Rs.40,771] Advertising ..... ..... ..... ..... 30,000
Dividends paid ..... ..... ..... .....
Q-11: Prepare a cost sheet showing the cost per tonne of paper manufactured by 1,00,000
J.J. Paper Mills in January 2016, under the different elements of cost : Prepare a cost analysis statement (in columnar form) after considering the
Direct Materials : following:
Paper pulp (1,000 tonnes) ..... ..... Rs.50 per tonne (i) The profit rate is 20% on sale.
Other Materials (200 tonnes) ..... ..... Rs.30 per tonne (ii) Wages outstanding 25,000.
Direct Labour : [Prime Cost Rs.9,25,000; Factory cost Rs.10,90,000; Office cost Rs.12,11, 000
220 skilled men for 25 days ..... ..... Rs.5 per day Total cost Rs.12,86,000; Sales Rs.16,07,500]
110 unskilled men for 25 days ..... ..... Rs.4 per day
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Q-13: Jayanth Co. Ltd. makes two kinds of rubber balls, A and B. The following be marketed so as to yield a profit of 10% on selling price.
particulars relate to these balls for the year 2017 : [Selling Price per machine Rs.750]
A B
Balls Manufactured 50,000 24,000 Q-15: The following is the summarised Trading and Profit and Loss A/c of K.
Direct Cost : Waterproof Manufactures Ltd., for the year ending 31st March, 2016 in which
Material Rs.6,280 Rs.5,300 year 800 waterproofs were sold by the said company :
Wages Rs.18,800 Rs.11,400 Particulars Rs. Particular Rs.
Power etc. Rs.4,200 Rs.2,820
To Cost of Materials 32,000 By Sales 1,60,000
Rs.29,280 Rs.19,520
To Direct Wages 48,000
Other costs :
To Manufacturing Charges 20,000
Factory supervision Rs.7,200
To Gross Profit c/d 60,000 .
Packing expenses Rs.800
1,60,000 1,60,000
Selling expenses Rs.8,880
To Office Salaries 24,000 By Gross Profit b/d 60,000
You are required to prepare a statement showing the cost of each kind of balls
To Rent and Taxes 4,000
when ready for despatch taking the following into consideration :
To Selling Expenses 8,000
(a) Factory supervision to be charged in proportion to directs costs..
To General Expenses 12,000
(b) Packing expenses to be apportioned in the ratio that direct cost plus factory
To Net Profit 12,000 .
supervision cost of A bears to similar cost of B.
60,000 60,000
(c) Selling expenses to be charged in proportion to the number of balls
manufactured. Following estimates were made by the costing department of the company for the
[Total cost of balls : A Rs.40,080; B Rs.25,600] year ending 31st March, 2017 :
(a) The output and the sales will be of 1,000 waterproofs.
Q-14: Walson Ltd. produced and sold 1,000 Washing Machines during the year (b) The price of materials will rise by 25% on the previous year’s level.
ending 31st March, 2016. The summarised Trading and Profit & Loss Account is (c) Wages during the year will rise by 12 1/2%.
given below : (d) Manufacturing cost will rise in proportion to the combined cost of materials
and wages.
Particulars Rs. Particular Rs.
(e) Selling cost per unit will remain unchanged.
To Materials Consumed 2,00,000 By sales 8,00,000 (f) Other expenses will remain unaffected by the rise in output.
To Direct Wages 2,00,000 From the above information prepare a cost statement showing the price at which
To Works Expenses 1,00,000 the waterproofs would be marketed so as to show a profit of 10% on the selling
To Gross Profit c/d 3,00,000 . price.
8,00,000 8,00,000 [Selling price Rs. 218.75]
To Selling and Distribution By Gross Profit b/d 3,00,000
Expenses 1,00,000 Q-16: A coal mine has incurred the following expenditure during the month of
To Net Profit 2,00,000 . January, 2016 : Rs. Rs.
3,00,000 3,00,000 Wages :
Underground 90,000
The management estimates the following for the year ending 31st March, 2017 : Surface 11,000 1,01,000
(i) Output and sales will be of 2,000 Washing Machines. Working expenses :
(ii) Prices of Materials and Wages will go up by 25% on the previous year’s level. Stores 6,600
(iii) Works Expenses will rise in proportion to the combined cost of Materials and Repairs and Renewals 4,000
Wages. Tram Wages 2,400
(iv) Selling and Distribution Expenses per unit is estimated at Rs.50. Timber 5,500
Prepare a Cost Statement showing the price at which Washing Machines would Rent Charges 4,400
 (35) (36)

Depreciation of Machinery 6,000 28,900 Rs.1,80,000 in respect of Grade B articles, and stocks on hand at 31.12.2016,
Administrative Expenses : 26,000 valued at works cost as per his costing, were Rs.5,400 of Grade A and Rs.13.500
Selling and Distribution Expenses : 14,000 of Grade B. From the information given above you are required to prepare a
Output for the month (tonnes) : 20,000 statement of revised costing showing the cost per article sold during 2016.
The working hours for the month were 50,000 and the usual administrative cost [Cost per article sold : A Rs.9.71; B Rs.16.33]
was applied at 50 paise per labour hour and selling expenses were applied at 60
paise per tonne. You are requested to prepare a monthly cost sheet and show the Q-19: From the understated particulars you are required to prepare a monthly
variations of actual costs per tonne from estimated costs as applied by cost sheet of Plastic Toy Manufacturers Ltd. showing cost and profit per 1,000
management. toys. Show also in the form of summary, the Cost of Sales, Net Profit and Sales for
[Selling Cost: Rs.1,66,900; Under allocation: Rs.3,000 or Re.0.15 per tonne] the month. The company manufactures only one type of toy. The opening stock
was valued at the same price per 1,000 toys as the production for the month
Q-17: Nilgiri Airconditioning Company produces refrigerators and sells each for concerned :
Rs.2,000 during a certain accounting year. The direct material, the direct labour Materials :
and overhead costs are 60%, 20% and 20% respectively of the cost of sales. In a Basic (1,400 tonnes) ..... ..... Rs.5 per tonne
subsequent accounting year, the direct material cost has increased by 15% and Stores ..... ..... Rs.5,000
direct labour cost by 17%. Due to these increases in costs, there would be a 50% Labour :
decrease in the amount of profit if the same selling price is to be maintained. Direct ..... ..... Rs.16,000
Compute the new selling price to enable the Company to maintain the same Indirect ..... ..... Rs.3,000
percentage of profit as that earned during the preceding year. Overheads :
[Old Cost: Rs.1,600; New Cost: Rs.1,800; New Selling Price: Rs.2,250] Works ..... ..... 25% of Direct labour
Office ..... ..... 10% of Works cost
Q-18: A manufacturer commenced production on 01.01.2016 of a standardised Production for the month ..... ..... 10,00,000 Toys
article in two grades : A and B. Both are produced from the same raw material and Sales for the month (Rs.50 per 1,000 Toys) ..... ..... 9,00,000 Toys
are sold to wholesellers at a uniform price as Grade A at Rs.150 per dozen and Stock on 01.06.2016 ..... ..... 2,00,000
Grade B at Rs.240 per dozen. Sales prices are based on the following estimated Stock on 30.06.2016 ..... ..... 3,00,000
figures : [Cost of Sales per 1,000 toys: Rs.38.50; Profit 1,000 toys: Rs.11.50]
Cost per article
Grade A Grade B Q-20: A company makes two distinct types of vehicles A and B. The total expenses
Rs. Rs. during a period as shown by the books for assembly of 600 units of A and 800
Direct Material cost 1.50 3.00 units of B are as under : Rs.
Direct Wages 5.00 7.00 Material ..... ..... 1,98,000
Production Overhead 2.50 3.50 Direct wages ..... ..... 12,000
Works Cost 9.00 13.50 Stores overheads ..... ..... 19,800
Selling and Distribution Overhead 0.90 1.35 Running expenses of machine ..... ..... 4,400
Total Cost 9.90 14.85 Depreciation ..... ..... 2,200
On making up accounts for the year ended 31.12.2016, the following facts were Labour amenities ..... ..... 1,500
ascertained : Works general ..... ..... 30,000
Grade A Grade B Administration and selling ..... ..... 26,800
Rs. Rs.
Other data available to you are : ..... ..... A : B
Cost of Materials used 15,000 20,000
Materials cost ratio per unit ..... ..... 1 : 2
Direct Wages 38,250 76,500
Direct labour ratio per unit ..... ..... 2 : 3
Total Production Overhead Rs.68,250
Machine-utilization ratio per unit ..... ..... 1 : 2
Total Selling and Distribution overhead Rs.32,700
During the year sales amounted to Rs.1,05,000 in respect of Grade A articles and Calculate the cost of each vehicle per unit giving reason for the basis of
 (37) (38)

apportionment adopted by you.

[Cost per unit : A Rs.138.79; B Rs.264.28] Format of Cost Sheet
Q-21: A factory can produce 60,000 units per annum at its optinium (100%)
Direct Material
capacity. The estimated costs of production are as under :
Direct Material : Rs. 3 per unit Opening Stock of Raw Material xxxx
Indirect Labour : Rs. 2 per unit Purchases of Raw Material xxxx
Indirect Expenses
Fixed : Rs. 1 50,000 per annum Add: Freight / Carriage on Purchase xxxx xxxx
Variable : Rs. 5 per unit Less: Closing Stock of Raw Material - xxx
Semi-Variable : Rs. 50,000 per annum up to 50% capacity and an
Less: Sale of Wastage of Material - xxx
extra expenses of Rs.10,000 for every 25% increase
in capacity or part thereof. Cost of Raw Material Consumed xxxxx
The factory produces only against orders (and not for own stock). If the production Add: Packing Material xxxx
programme of factory is as indicated below and the management desires to
Direct Labour xxxx
ensure
a profit of Rs.1,00,000 for the year, work out the average Selling Price at which Direct Expenses / Chargeable Expenses xxxx
each unit should be quoted : First 3 months of the year 50% of capacity; remaining PRIME COST xxxxx
9 months 80% of capacity. Ignore selling, distribution and administration
overheads. Add: Factory Overheads
[Average selling price per unit: Rs.17.24] Indirect Material xxxx
Consumable Stores, Cotton, Oil and Grease
Q-22: The following figures have been obtained from the cost records of Rai
Manufacturing Company for the year 2016 : Indirect Labour xxxx
Rs. Supervisor’s Salary, Storekeeper’s Salary
Cost of materials ..... ..... 2,40,000
Factory Manager’s Salary/Commission
Wages for labour ..... ..... 2,00,000
Factory overhead ..... ..... 1,20,000 Indirect Expenses xxxx
Distribution expenses ..... ..... 56,000 Power, Factory Lighting, Factory/Store Rent & Insurance,
Administration expenses ..... ..... 1,34,000
Selling expenses ..... ..... 89,600 Repairs of Factory Assets, Haulage, Estimation,
Profit ..... ..... 1,68,000 Depreciation of Factory Assets, Experimental Expenses
A work order was executed in 2017 and the following expenses were incurred : Any other Factory Related Expenses
Cost of materials ..... ..... Rs.32,000
Less: Sale of Scrap - xxx
Wages for labour ..... ..... Rs.20,000
Assuming that in 2017 the rate for factory overhead went up by 20%, distribution GROSS FACTORY / WORKS COST xxxxx
charges went down by 10%, and selling and administration charges went up by Add: Opening Stock of Work in Progress xxxx
121/2%, at what price should the product of the job be quoted so as to earn the
Less: Closing Stock of Work in Progress - xxx
same earlier rate of profit on the selling price ? Show the full working. Factory
overhead is based on direct wages while Distribution, Administration and Selling NET FACTORY / WORKS COST xxxxx
charges are based on the Factory Cost.
[Rs.1,22,707]
Continued....
••••••••••••••••••••••
 (39) (40)

NET FACTORY / WORKS COST xxxxx

Add: Office and Administration Overheads
Indirect Material xxxx
Following Items will not be shown in the Cost Sheet :
Printing and Stationery, Computer Stationery & Papers (I) Appropriation of Profits
Indirect Labour xxxx Sinking Fund
Staff Salary, Manager’s Salary, Director’s Fees General Reserve
Income Tax
Indirect Expenses xxxx
Dividend Paid
Office Rent & Insurance, Bank Charges, Telephone, Excess Provision for Depreciation / Bad Debts
Depreciation of Office Assets, Audit Fees,
Postage & Telegram, Office Lighting, (II) Amortisation of Expenses
Goodwill Written off
Repairs of Office Assets, Legal Charges,
Preliminary Expenses Written off
Any other Office Related Expenses . Discount / Expenses on Issue of Shares and Debentures
OFFICE COST / COST OF PRODUCTION xxxxx Underwriting Commission
Add: Opening Stock of Finished Goods xxxx
(III) Purely Financial Charges and Abnormal Losses
Less: Closing Stock of Finished Goods - xxx
Loss on sale of Assets
COST OF GOODS SOLD xxxxx Interest paid on Loans / Debentures
Add: Selling and Distribution Overheads Penalties and Fines Paid
Damages Payable
Indirect Material xxxx
Expense on shifting of Office / Factory
Free Samples, Distribution Material Accidental / Abnormal Losses
Indirect Labour xxxx
Salesmen’s Commissions and Salaries, (IV) Purely Financial Incomes
Interest Received on Bank Deposit
Warehouse Keeper’s Salaries
Interest / Dividend Received on Investments
Indirect Expenses xxxx Rent Received
Travelling Expenses, Advertising, Warehouse Rent, Profit on sale of Assets
Carriage/Freight Outwards, Loading Charges, Packing Transfer Fees Received
Brokerage Received
Collection Charges, Bad Debts, Tender Charges,
Discount / Commission Received
Any Other Selling & Distribution Expenses .
COST OF SALES xxxxx
Add: Profit or xxxx
Less: Loss - xxx
SALES xxxxx