Cost Sheet:

1. The directors of a manufacturing business require a statement showing the production

results of the business for the month of March,2014. The cost accounts reveal the following
information:

Stock on hand 1st March,2014

Raw Material 25,000
Finished Goods 17,360
Stock on hand, 31st March,2014
Raw Material 26,250
Finished Goods 15,750
Purchase of raw material 21,900
WIP, 1st March,2014 8,220
WIP, 31st March, 2014 9,100
Sale of finished goods 72,310
Direct Wages 17,150
Non-productive wages 830
Works expenses 8,340
Office and administrative expenses 3,160
Selling and distributive expenses 4,210

Show:
1. The value of material consumed
2. The total cost of production
3. The cost of goods sold
4. Gross profit/loss
5. Net profit/loss
 2. Work out in cost sheet form the unit cost of production per ton of a special paper,
manufactured by a paper mill in December from the following data:

Direct Materials:

Paper Pulp---500 tons @ Rs.50 per ton

Other materials----100 tons @ Rs.30 per ton

Direct Labour:

80 skilled men @ Rs.3 per day for 25 days------

40 unskilled men @ Rs.2 per day for 25 days

Direct Expenses:

Special equipment Rs. 3,000

Special dyes Rs. 1,000

Works Overhead:

Variable @ 100% and

Fixed @ 60% on direct wages

Administrative overhead: @ 10% and

Selling and distribution overhead @ 15% on works cost

400 tons of special paper was manufactured and Rs. 800 was realised by the sale of waste material.
The scrap value of special equipment after utilisation in manufacture is nil.