Your company is an export oriented organisation manufavturing intercoms.

The company is to send

quotations to foreign buyers. You are required to prepare the cost sheet and help the management in the
matter of submission of quotation. Total Output- 20,000 units Local Raw Material (RM) Consumed - Rs.
10,00,000 Imported RM consumed : Rs. 1,00,000 Direct Labour- Rs.10,00,000 Indirect Labour- Rs.
2,00,000 Excise Duty-Rs. 2,00,000 Administrative Overheads - Rs. 2,00,000 Salary of MD - Rs. 60,000
Other Director's Salary - Rs. 40,000 Storage of RM and spares - Rs. 50,000 Fuel - Rs. 1,50,000 Tools
Consumed - Rs. 20,000 Depreciation on Plant - Rs. 1,00,000 Factory Salaries (Works Personnel salary) -
Rs.1,00,000 Director's fees- Rs. 20,000 Advertisement expenses - Rs. 1,60,000 Selling Expenses- Rs.
1,80,000 Sales Depot - Rs. 1,20,000 Packing and Distribution charges - Rs. 1,20,000 1. Local RM now
costs 10% more 2. With Profit margin of 20% on sales is kept 3. The government grants subsidies
Of Rs. 100 per unit if export. Prepare the cost sheet
SANFORD PEREIRA
5:35 PM
Ma'am done... we can go ahead with the next sum?
SANFORD PEREIRA
5:42 PM
Prepare the cost sheet to show the total production cost & Cost per unit of goods manufactured. Also, find
the Cost of Sales. Opening Stock of RM: Rs. 3,000 RM Purchased: Rs. 28,000 Closing Stk of RM: Rs.
4,500 Direct wages- RS. 7,000 Depreciation on Plant: Rs. 1,500 Loss on sale of plant: Rs. 300 Factory
Rent and rates: Rs. 3,000 Office Rent: Rs. 500 General Expenses: Rs. 400 Discount on Sales: Rs. 300
Ad expenses Rs. 600 Income Tax paid Rs. 2000 Sales- Rs. 50,000 No. of units produced - 3000
opening stock of Finished goods: 200 units Closing stck of fin. goods 400 units total cost of opening stck:
Rs. 2,800 All of these have sold during the period
SANFORD PEREIRA
6:10 PM
OPENING | CLOSING stck of fin goods 6000 | 15000 Stck of RM 40,000 | 50,000 WIP 15,000 | 10,000
Purchase of RM: Rs. 4,75,000 Carriage inwards: Rs. 12,500 wages: Rs. 1,75,000 Works Managers
Salary RS. 30,000 Factory Employees Salary Rs. 60,000 Factory Rent & rates: Rs. 7,250 Power and
Fuel: Rs. 9,500 Other Prod. exp. Rs. 43,000 General Exp. Rs. 32,500 Sales: RS. 8,60,000 Income Tax
Rs. 500 Dividend Rs. 1,000 Debenture Interest RS. 5,000 Sinking Fund for Machinery Rs. 10,000
Goodwill written off RS. 10,000 Sales tax Rs. 16,000