COST

SHEET FOR
CUPCAKES

COST
ACCOUNTING
CIA-I

1923175 MATHEW KANICHAY

1923107 ANUKUL MANDHANIA
INTRODUCTION

Home baking has evolved from something we just do for passion to a large business. Baked
goods businesses have grown in popularity over the last few years. More recently, many
entrepreneurs have started selling their cakes, cupcakes, and cookies from home and have grown
into regular retail bakeries and even franchises.

PRODUCT DESCRIPTION

Freshly baked Chocolate cupcakes with rich butter cream frosting made with quality ingredients
and hygienically packed at home.

ASSUMPTIONS

• A total of 3000 units are produced.

• The entire process of baking, decorating, and packaging is done at home.
• There is no delivery of the products, only takeaway. So, distribution expenses are
reduced significantly. And marketing is done through Facebook ads.
• No inventories as it is newly formed, all raw materials required are bought.
• Depreciation of machinery and equipment’s is taken at 20%.

Calculation Machinery/ Equipments Cost(rs.)

1) Electric Beater 5000
2) Oven 30000
50000*20/100=10000 3) Baking trays 4000
4) Utensils 6000
5) Decorating equipments 2000
10000/3000(no. of units) = 3.33Rs 6) Mixie 3000
total 50000

• Bad debts are taken at 5% of the total cost.

Total cost before bad debts:72.952 * 5%= 3.6Rs
• The home-made factor of production helps in reducing significant costs under the
administration expenses.
 COST SHEET OF HOME-MADE CUPCAKES

PARTICULARS PER UNIT COST(Rs.) AMOUNT in RS.(3000 UNITS)

Direct costs:
Raw materials:
All Purpose Flour 0.72 2160
Cocoa Powder 1 3000
Baking Powder 0.021 63
Baking Salt 0.021 63
Salt 0.01 30
Butter 4.75 14250
Sugar 0.9 2700
Eggs 0.6 1800
Yoghurt 0.83 2490
Coffee 0.83 2490
Vanilla Essence 0.33 990
Frosting 17 51000
Cupcake Liners 6 18000
Carriage Inwards 4.2 12600
Direct Labour 12 36000

PRIME COST 49.212 147636

Indirect manufacturing costs:

Electricity & Water 4.16 12480
Depreciation of equipments @20% 3.33 9990
Cost of storage of Raw material 0.25 750

WORKS COST 56.952 170856

Administration Expenses:
Stationary 0.25 750
Phone 0.75 2250
Computer 0.5 1500

COST OF PRODUCTION 58.452 175356

Distribution Expenses:
Packaging 10 30000
Facebook Advertising 4.5 13500
Bad debts @5% 3.6 10800

COST OF SALES 76.552 229656

PROFIT 13.448 40344
SELLING PRICE 90 270000