A PROJECT REPORT ON

COST SHEET OF LAXMI SOAP FACTORY

CODE NO- 138220592017

MBA 2nd SEM

SUBMITTED BY :- SUBMITTED TO:-

JERRIN RACHEL ALIYAS Mrs SONAM SADHU

 INDEX

S.NO TOPIC Page. No

1 PREFACE 3

2 ACKNOWLEDGEMENT 4

3 CONTENT 5

4 COST SHEET 6-7

5 COST SHEET ANALYSIS 8

5 CONCLUSION 9-10

6 BIBLIOGRAPHY 11

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 PREFACE

Cost sheet is a statement prepared to show the various elements of costs, like prime cost, factory
cost of production and total cost. It is prepared at regular intervals, for example, weekly, monthly
quarterly, yearly, etc. In some cases comparative figures of various periods are also shown in the
cost sheet so that assessment can be made about the progress of a business.

Cost sheet is a statement of cost showing cost per unit of any product at every level of
production. It is important to know at what stage of production we are and what price the
particular production stage has. Cost sheet is a statement of cost. In other words, when costing
information is set out in the form of a statement it is called a cost sheet. It is usually adopted
when only one product is produced and all costs are incurred for that product only. Cost sheet
may be prepared for a week, for a month, quarterly or yearly indicating various components of
cost such as prime cost, works cost, cost of production, cost of goods sold, total cost and also
profitability of production.

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 ACKNOWLEDGEMENT

This project report is a result of efforts of a number of persons directly or indirectly associated. I
wish to acknowledge our deep appreciation for the valuable suggestion and guidance rendered to
me by them which has helped me in completing this project.

I am hearty thankful to Mrs Sonam Sadhu, for kindly approving this project work and
extending all the co-ordination for this.

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 CONTENT:-

Laxmi Soap Factory was established in the year 1959. But for the Ranglani family, the roots of
soap manufacturing are traceable to the year 1921. Sheth Thakurdas Ranglani was based in
Karachi when he initially started a soap-manufacturing unit . After partition, Thakurdas migrated
to India and started a manufacturing unit in the year 1948.

The company manufactures Laundry Detergent, Detergent Cake, Detergent Powder / Dish
Scouring bar and Toilet Soap / Laundry Soap / Multipurpose Soap and Essance Sticks(Agarbatti)
also have their own Sulfonation plant. The company intends to go in for the manufacture of toilet
soaps. As Mr.Girish puts it, "Ambitious plans are on the anvil inspite of stiff competition from
all types of manufacturers, big and small."

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 COST SHEET

UNITS OF PRODUCTION = 170000

PARTICULAR PER UNIT PRICE TOTAL

PRICE

DIRECT MATERIAL 5.8 1000000

Acids 1.76 300000

Speciality chemicals 1.47 250000

Ordinary chemicals 1.76 300000

Perfumes .21 35000

TOTAL 1.29 220000

Direct labour

Direct expense 3.11 530000

Prime cost 15.4 4134500

Factory overheads :

Fixed:

Depreciation 1.47 250000

Rent .58 100000

Power 1.02 175000

Insurance 0.88 150000

Supervisors salary 0.35 60000

Variable:

Electricity 0.41 70000

Running exp. Of machine .58 100000

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Work cost/ factory cost 20.69 5039500

Office overheads:

Employee cost 5.8 1000000

Other exp.

Computer 0.71 120000

Telephone 0.06 10000

Taxes 0.24 40000

Carriage out ward 0.12 20000

Cost of production 27.62 6229500

opening stock of finished goods 2 200000

-Closing stock of finished goods 0 0

Cost of goods sold 29.62 6429500

Selling & distribution overheads:

Advertisement 2.35 400000

Delivery vehicles 2.06 350000

Petrol 1.03 175000

Packaging rates 0.3 50500

Cost of sales / total cost 35.36 7405000

Profit 18.51 3146700

Sales 53.87 10551700

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 COST SHEET ANALYSIS

Information:-

 Selling & distribution overheads:

 Advertisement 2.35 400000
 Delivery vehicles 2.06 350000
 Petrol 1.03 175000
 Packaging rates 0.3 50500

 Depreciation 1.47 250000

 Rent .58 100000
 Power 1.02 175000

With the help of factory overhead , administration overhead & selling and distribution

overhead we can characterise the cost sheet and the total sales of laxmi soap factory is

10551700.

With the help of this information we can easily identify :-

 Pvr

 Breakeven point in rupees

 Breakeven point in units

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 CONCLUSION :-

 PVR = Cost/ sales

= 7405000/ 10551700

= 0.70

Note:- to better understanding we can say that PVR is 70%.

 Breakeven point (rupees) = fixed cost/ PVR

= 735000/ 0.70

= 1050000

Fixed cost include :-

Depreciation 1.47 250000

Rent .58 100000

Power 1.02 175000

Insurance 0.88 150000

Supervisors salary 0.35 60000

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 Breakeven point (Unites) = fixed cost/ cost
= 735000/7405000
= 0.099

 Margin of safety Ratio = profit/ PVR

= 3146700/0.70
= 4495285.7

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 BIBLIOGRAPHY:-

 http://icabtutorial.com/costsheet-format/

 http://www.moneycontrol.com

 www.scribd.com

 www.google.com

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