Cost Sheet Analysis of Shruti Srushti Textiles

Sanjay Ghodawat University, Kolhapur.
SIP Project Report
Project Report
On
“A STUDY OF COST SHEET ANALYSIS WITH RESPECT TO

SHRUTI SRUSHTI TEXTILE ICHALKARANJI”
Submitted by
MS. SHRAVYA BALAKRISHNA SHETTY

17CM107131007
Under the guidance of
MRS. SHUBHANGI JAGTAP
in partial fulfillment of the requirements for the award of the Degree of

BACHELOR OF COMMERCE
of
SANJAY GHODAWAT UNIVERSITY, KOLHAPUR
SCHOOL OF COMMERCE AND MANAGEMENT

2019 – 20
B.COM – School of Commerce & Management, Kolhapur 1 |P a g e

Sanjay Ghodawat University, Kolhapur. SIP Project Report
DECLARATION
I undersigned, hereby declare that the project titled “A STUDY OF COST SHEET ANALYSIS
WITH RESPECT TO SHRUTI SRUSHTI TEXTILE, ICHALKARANJI” submitted in partial
fulfillment for the award of degree of Bachelor of Commerce in Sanjay Ghodawat University,
Kolhapur is a bonafide record of work done by me under the guidance of MRS. SHUBHANGI
JAGTAP, at School of Commerce & Management. This report has not submitted previously for
the award of any degree, diploma, or similar title of any University.
Place: Ichalkaranji
SHRAVYA SHETTY
ACKNOWLEDGMENT

Through this acknowledgement I express my sincere gratitude towards all those people who
helped me in the project, which has been a learning experience.
This space wouldn’t be enough to extend my warm gratitude towards my project guide. MRS.
SHUBHANGI JAGTAP & MR. SAGAR HUPARE for their efforts in coordinating with my
work and guiding in right direction.
I escalated a heartful regards to our Vice Chancellor, Registrar, Academic Dean, Dean and
Program Coordinator for giving me the essential hand in concluding this work.
It would be injustice to proceed without acknowledging those vital supports I received from my
beloved classmates and friends, without whom I would have been half done.
I also use this space to offer my sincere love to my parents and all others, who had been there,
helping me, walk through this work.
SHRAVYA BALAKRISHNA SHETTY
INDEX

Chapter Chapter Name Page no.

no.
I. Introduction to study 8-10
II. Company profile 11-12
2.1 History of the Company 11
2.2 Production method 12
2.3 Detail of the Company 12
2.4 Process of production 12
III. Conceptual Framework 12-20
IV. Research Methodology 21-22
4.1 Research methodology 21
4.2 Research Design 21-22
4.3 Data Collection 22
V. Data Analysis and Interpretation 23-38
VI. Recommendation 39
VII. Conclusion 40

VIII. Bibliography 41
LIST OF TABLES

Sr no. Table no. Description Page no.
1. 5.1 Statement of cost sheet for the year ended 2017 23-25
2. 5.2 Profit and loss in the year 2017 25
3. 5.3 Statement of cost sheet for the year ended 2018 26-28
5. 5.5 Statement of cost sheet for the year 2019 29-31
7. 5.7 Profit and loss in 3 years 32
8. 5.8 Sales in the year 2017, 2018, 2019 33
9. 5.9.1 Raw material 34
10. 5.9.2 Work in progress 35
11. 5.9.3 Finished goods 36
12. 5.9.4 Stock 37
LIST OF GRAPHS & CHARTS
Sr no. Graph/ Chart Description Page no.

no.

1. 5.1 Profit and Loss in 3 years 32
2 5.2 Sales in the year 2017, 2018, 2019 33
3 5.3 Raw material 34
4 5.4 Work in progress 35
5 5.5 Finished goods 36
6 5.6 Stock 37
CHAPTER: 1
INTRODUCTION OF THE STUDY
1.1 Cost Sheet

For Determination of total cost of production, a statement showing the various elements of
cost is prepared. This statement is called as a statement of cost or cost sheet. Cost sheet is a
statement which provides assembly of the detailed cost of a cost center or a cost unit. It is a
statement showing the details of a) total cost of job b) Cost of an operation or order. It
brings out the composition of total cost in a logical order under proper classification &
subdivision. The period to covered by the cost sheet may be by a week a month or so.
Separate columns are provided to show total cost, cost per-unit etc. In case of different
products there are different cost sheet for different products. A cost sheet is prepared under
output or unit costing method.
Thus, cost sheet is periodical statement of cost, deigned to show in detail the various
elements of cost of good produced like prime cost, factory cost, cost production and total
cost. It is prepared at regular intervals, example weekly, monthly, quarterly, yearly etc.
The preparation of cost sheet depends on the cost data provided by cost accounting. So, the
current study entitled “a study of cost sheet analysis” has been carried out in Shruti Srushti
Textiles with an intension of understanding the framework of cost sheet analysis. The data
for a study has been collected both from primary and secondary sources of the organization
to achieve the objectives of the study.
1.2 Purpose of Cost Sheet
1. It gives the breakup of total cost under different elements.

2. It shows total cost as well as cost per unit.
3. It helps in comparison with previous years.
4. Its facilities preparation of tenders or quotations.
5. It enables the management to fix up selling price.
6. It controls cost.
1.3 ON THE BASIS OF BEHAVIOUR OF COST

Behavior means change in cost due to change in output. On the basis behavior cost is
classified into the following categories:
1.3.1 FIXED COST
It is that portion of the total cost which remains constant irrespective of the output upon
capacity limit, it is called as a period cost as it is concerned with period. It depends upon the
time. It is also referred to as non-variable cost or stand by cost, capacity cost or passage
"period" cost. It tends to be unaffected by variations in output. These costs provide
conditions for production rather than costs of production. They are created by contractual
obligations and managerial decisions. Rent of premises, taxes and insurance, staff salaries
constitute fixed cost.
1.3.2 VARIABLE COST
This cost varies according to the output. In other words, it is a cost which changes according
to the changes in output. It tends to vary in direct proportion to output. If the output is
decreased, variable cost also will decrease. It is concerned with output or product. Therefore,
it is called as a "product" cost. If the output doubled, variable cost will also be doubled. For
example, direct material, direct labour, direct expenses and variable overheads. It is shown in
the diagram below. variable cost
1.3.3 SEMI-VARIABLE COST
This is also referred to as semi-fixed or partly variable cost. It remains constant up to a

certain level and registers change afterwards. These costs vary in some degree with volume
but not in direct or same proportion. Such costs are fixed only in relation to specified
constant conditions. For example, repairs and maintenance of machinery, telephone charges,
supervision professional tax, etc.
1.4 Objectives of study

1. To study the concept and structure of Cost Sheet
2. To study the Cost Sheet on the basis of profit and loss account.
3. To analyze the Cost sheet of Shruti Srushti Textiles with help of profit and loss account
(3 years i.e. 2016 to 2018)

CHAPTER: 2
COMPANY PROFILE
2.1 History

The company was born in January 2008 as a private limited company. The project was stared in
the year 2007 as was finalized in the year 2008. Its branch portfolio includes Shirt, Astar,
Bedsheets and Handkerchief. But, most importantly the company was acquiring a reputation for
quality and value. IDBI bank had played a major role in helping the company financially as loan.
The company uses machinery which are electrically updated. Company uses two type of
machinery one is Auto Loom and other one is Power Loom and Mostly the auto loom is used for
shirting. There are 25 auto loom and 150 power looms in the factory.
The production of textiles is a craft whose speed and scale of production has been altered almost
beyond recognition by industrialization and the introduction of modern manufacturing
techniques. However, for the main type of textile. Plain weave, twill or satin weave. There is
difference between the ancient and modern methods.
Textile can be made from many materials these materials come from four main sources: animal,
plant, mineral, and synthetic. In the past. All textile was made from natural fibers including
plant, animal and mineral sources.
Yarn is the major activities source in the textile industry. They are a wide variety of fibers that
are used to create yarn that you can use for knitting and crocheting and they come from a variety
of sources. The fibers used to create these yarns include plant fibers, animal fibers, synthetic
fibers.
 Turnover-
Turnover 2017 Rs 2 Cr
2.2 Production method-

Weaving: is a textile production method which involves interlacing a set of longer threads with a
set of crossing threads. Some weaving and vast majority is done on machinery.

Involves twisting thread together into cloth knotting involved typing threads together and is used
in making further process of weaving.
Lace: is made by interlocking threads together independently. Using a backing and any of the
method described
2.3 Detail of the company-

Name of the organization : Shruti Srushti Textiles
Location of the unit : Gat no. 706, Jaihind Nagar, Galli No. 3, Kobnoor.Tal.
Hatkananglae Dist. Kolhapur.
Vision : Committed to supplying high quality product and superior service to the
customers.
Mission : To provide the customers with products that are recognized as the best
2.4 Process of production-
Yarn
Yarn
Sizing
Sizing
Raw
Raw process
process
Beem
Beem
Weaving
Weaving
Cloths
Cloths
CHAPTER: 3
CONCEPTUAL FRAMEWORK

3.1 Meaning Cost sheet
A cost sheet is a report on which is accumulated all of the costs associated with a product or
production job. A cost sheet is used to compile the margin earned on a product or job, and
can form the basis for the setting of prices on similar products in the future [ CITATION
Jac99 \l 1033 ] It can also be used as the basis for a variety of cost control measures. Despite
the name, a cost sheet can be compiled and viewed on a computer screen, as well as being
manually developed on paper.
3.2 On the basis of the elements of cost
Elements means nature of items. A cost is composed of three elements of three elements,
material, Laboure and expenses. Each of their elements can be direct and indirect.
3.2.1 Direct Cost
It is the cost which is directly chargeable to the product manufactured. It is easily identified.
3.2.2 Direct Material
It is the cost of basic raw material used of manufacturing a product. It becomes a part of the
products. No finished product can be manufactured without basic raw material. It is easily
identifiable and chargeable to the product. what is raw material for one manufacturer might
be finished product for another [ CITATION Bow03 \l 1033 ]. Direct material includes the
following:
1. All materials specially purchased for production or the process.

2. All components purchased for production or process.
3. Material transferred from one cost center to another or one process to another.
4. Primary packing materials, wrapping, cardboard boxes etc, necessary for
preservation or protection of product.

Some of the items like nails or thread in the store are a part of financial product. They are
not treated as direct material in view of negligible cost.
3.2.3 Direct Wages
It is the amount paid to those workers who are engaged in the manufacturing line for
conversion of raw material into finished good. The amount of wages can be easily identified
and directly charged to the production. There workers directly handle raw material, work in
progress and finished goods on the production line. Wages paid to the workers operating
lathes, process labour or prime cost labour. Direct wages include the payment made to the
following group of work:
1. Labour engaged on the capital production of the product.

2. Labour engaged in the aiding the operation viz. Supervisor, Foreman, Shop, clerks
and Worker on internal transport.
3.2.4 Direct Expenses
It is the amount to expenses which are directly chargeable to the product manufacturing or
which may be allocated to product directly. It can be easily identified with the product. For
example, hire charges of a special machine used for manufacturing a product, cost of
designing the product, cost of patterns, architects’ fees, or job cost of experimental work
carried out especially for a job etc.
3.3 Indirect Cost
It is the portion of the total cost which cannot be identified and charged directly to the
product. It has to be allocated and apportioned and absorbed over the units manufactured on
a suitable basis. [ CITATION Cha04 \l 1033 ]
3.3.1 Indirect material

It is the cost of the material other than direct material which cannot be charged to the
product directly. It cannot be treated as a part of the product. It is also known as expenses
material. It is the material which cannot be allocated to the product but which can be
apportioned to the cost units. Examples are as follows:
1. Small tools for general use

2. Materials used to pack the finished good at the time of transportation
3.3.2 Indirect labour
It is the amount of wages paid to those workers who are not engaged on the manufacturing
line, for expenses, wages of workers in administration department, sales department, general
supervision.
3.3.3 Indirect Expenses
It is the amount of expenses which is not chargeable to the product directly. It is the cost of
giving service to the production department. It includes factory expenses, administrative
expenses, selling and distribution expenses etc.
3.4 Overheads
Aggregate of indirect cost is referred to as overheads. It arises as a result of overall

operation of the business. According to Weldon overhead means,” the cost of indirect
material, indirect labour and such other expenses, including services as cannot conveniently
be charged direct to specific cost units”. It includes all manufacturing and non-
manufacturing supplies and services. These costs cannot be associated with a particular
product. The principal feature of overheads is the lack of direct traceability to individual
product. It remains relatively constant from period to period. [ CITATION Sto07 \l 1033 ] The
amount of overhead is not directly chargeable i.e. it has to be properly allocated,
apportioned and absorbed on some equitable basis.

3.4.1 Factory overheads
It is the aggregate of all the factory expenses incurred in connection with manufacture of a
product. These are incurred in connection with running of factory. It includes the items of
expenses viz, factory salary, work managers salary, factory repairs, rent of factory premises,
factory lighting, lubricants, factory power, drawing office salary, haulage (cost of internal
transport) depreciation of plant and machinery unproductive wages, estimation expenses,
royalties, material handling charges, time office salaries counting house salaries etc.
3.4.2 Administration Overhead
It is the aggregate of all the expenses as regards administration. It is the cost of office
service or decision-making. It consists of the following expenses: Staff salary, printing and
stationery, postage and telegram, telephone charges, rent of office premises, office
conveyance, printing and stationery and repairs and depreciation of office premises and
furniture etc.
3.4.3 Selling and Distribution Overhead
It is the aggregate of all the expenses of all the expenses incurred in connection with sales
and distribution of finished product and service [ CITATION Wil05 \l 1033 ]. It is the cost of
sales and distribution services.
Selling expenses are such expenses which are incurred acquiring and retaining customers. It
includes the following expenses:
1. Advertisement
2. Show room expenses
3. Travelling expenses
4. Commission to agents
5. Salaries of sales office
6. Cost of catalogues

7. Discount allowed
8. Bad debt written off
9. Commission on sales
10. Rent of sales room
11. Sample of free gifts
12. After sales service expenses
13. Expenses on demonstration and technical advice to prospective customers
14. Free repairs and services expenses
15. Expenses on market research
16. Fancy packing and demonstration
Distribution expenses includes all those expenses which are incurred in connection with
making the goods available to customers these expenses include the following a) Packing
charges b) Loading charges c) Carriage on sales d) Rent on warehouse e) Insurance and
lighting of warehouse f) Insurance of delivery van g) Expenses on delivery van h) Salaries
of Godown keeper, drivers and packing staff.
Costs
Direct Cost Indirect Cost
Selling &
Administration
Direct Material Direct Lobour Direct Expenses Factory Cost Distribution
Cost
Cost
Cost Classification
3.5 Divisions of Cost
3.5.1 Prime Cost

It comprises of all direct materials, direct labour and direct expenses. It is also known as flat
cost
Prime cost = Direct Materials + Direct Labour + Direct Expenses
3.5.2 Works Cost
It is known as factory cost or cost of manufacture. It is the cost of manufacturing an article.

It includes prime cost and factory expenses.
Work Cost = Prime Cost + Factory Overhead
3.5.3 Cost of Production
It represents factory cost plus administrative expenses.
Cost of Production = Factory Cost + Administrative Expenses
3.5.4 Total Cost
It represents cost of production plus selling and distribution expenses.
Total Cost = Cost of Production + Selling & distribution Expenses
3.5.5 Selling Price
It is the price which includes total cost-plus margin of profit or minus loss, if any.
Selling Price = Total Cost + Price (-Loss)
3.5.6 Non Cost Items

Non cost items are those items which do not form part of cost of a product. Such items
should not be considered while ascertaining the cost of product. These are items included in
the profit & Loss A/c
3.6 Format of Cost Sheet
Particulars Amount (in Rs)
Opening Stock xxx
Add: Purchases xxx
Less: Closing Stock xxx
Direct Lobour - xxx
Direct Expenses - xxx
PRIME COST xxx
Factory Overhead xxx

WORKS COST xxx
Office & Administration Overhead xxx

COST OF PRODUCTION xxx
Selling & Distribution overhead xxx

TOTAL COST / COST OF SALES xxx
Profit xxx
Sales xxx

CHAPTER: 4
RESEARCH METHODOLOGY
4.1 Research Methodology
Research methodology is a way to systematically, solve the research problem. It may be

understood as a science of study how research is done. In this we study the various steps (the
research process) that are generally adopted by researcher in studying his research problem along
with the logic behind them. The basic steps in this research are also as following:
a) Steps in planning a research study:

1) Formulating a research problem.

2) Conceptualizing a research design.
3) Constructing an instrument for data collection.
4) Selecting a design.
5) Writing a research proposal.
b) Steps in conducting a study:

1) Collecting the data.
2) Processing data.
3) Writing a research project.
4.2 Research Design
Research design is a plan outlining how information is to be gathered for an assessment or

evaluation that includes identifying the data gathering methods, the instruments to be used or
created, how the instruments will be administered, and how the information will be organized
and analyzed.
The preparation of the research design, appropriate for particular research problem, involves
usually the consideration of the following:
 The means of obtaining the information;

 The availability and skills of the researcher and his staff;
 Explanation of the way in which selected means of obtaining information will be
organized and the reasoning leading to the selection;
 The time available for research; and
 The cost factor relating research, i.e., the finance available for the purpose.
4.3 Data Collection
In dealing with any real-life problem it is often found that data at hand are inadequate, and
hence, it becomes necessary to collect data that are appropriate. There are several ways of
collecting the appropriate data which differ considerably in context of money costs, time and
other resources at the disposal of the researcher.

There are two types of Data:
1. Primary data: Primary data is the specific information collected by the person who is
doing the research. It can be obtained through clinical trials, case studies, true
experiments and randomized controlled studies. This information can be analyzed by
other experts who may decide to test the validity of data by repeating the same
experiments.
The researcher had informal discussion with the account head regarding cost sheet
analysis
2. Secondary data: Secondary data is data collected by someone other than user. Common
sources of secondary data for social science include censuses, surveys, organizational
records and data collected through qualitative methodologies or qualitative research.
Secondary data analysis saves time that would otherwise be spent collecting data and,
particularly in the case of quantitative data, provides larger and higher-quality databases
than would be unfeasible for any individual researcher to collect on their own.
The research has been analyzed by using the profit and loss account of Shruti Srushti
Textiles of the year 2017,2018 and 2019.
CHAPTER: 5
DATA ANALYSIS AND INTERPRETATION
The chapter deals with the data analysis and interpretation of the study. In this chapter
comparative cost sheet of the Shruti Srushti Textiles, Ichalkaranji. Prepare for last 3 years
financial year from 2017, 2018, 2019
Table No. 5.1 Statement of cost sheet for the year ended 2017
Cost Sheet 2017
Particulars Amount Amount Amount Amount Per unit

(in Rs) (in Rs) (in Rs) (in Rs) (in Rs)
Opening Stock 30,09,925

Add : Purchases
Cloth Purchases 10,84,879 35
Yarn Purchases 36,37,238 18
Yarn Purchases Exempt 33,25,630 15
Yarn Purchases Sit 1,18,02,01 40
7
Yarn Purchases OMS 17,51,683 16
Yarn Purchases 5,819 2,16,07,266 20
Less : Materials Returned of Suppliers 0 2,16,07,26
6
2,46,17,19
1
Less : Closing Stock 39,43,750
2,06,73,44
1
Direct Lobour -
Kamgar Wages 13,61,740 1560
Kamgar Bonus Expenses 1,80,654 15,42,394 260
Direct Expenses -
Mill Stores Expenses 40,157 250
Motive Power Expenses 4,06,910 1080
Sizing and Warping 14,92,487 1200
Transport &Hamali Expenses 60,458 250
Vahiani Expenses 75,998 20,76,010 500
PRIME COST 2,42,91,84

5
Factory Overhead
Electrics Expenses 29,862 15
Repair 12,430 42,292 500
WORKS COST 2,43,34,13
7
Office & Administration Overhead

Accounting Charges 15,000 1300
Audit Fee & Consultation Fee 19,000 650
Bank Charges 1,074 80

Bank Interest 1,11,627 1116

Merchant Interest 38,333 255
Office Expenses 12,440 70
Office Salary 24,000 1000
Rent and Taxes 25,000 2,46,474 120
COST OF PRODUCTION 2,45,80,61
1
Selling & Distribution overhead

Dalali Expenses 1,17,320 500
Travelling Expenses 8,449 300
Vehical Expenses 12,891 1,38,660 1500
TOTAL COST / COST OF SALES 2,47,19,27
1
Profit 5,66,561
Sales 2,52,85,83
2
(Source – secondary data: Profit and Loss Account of Shruti Srushti Textiles)
The above table 5.1 is derived from the company’s profit and loss account of the year 2017. The
main elements of cost are direct cost and indirect cost. Where direct cost includes direct material,
direct labour, direct expenses and the amounts are 2,06,73,441, 15,42,394, 20,76,010
respectively and where as in indirect cost the cost like work cost, cost of production and total
cost/ cost of sales are included and the amounts for the following are 2,42,91,845, 2,43,34,137,
2,45,80,611, 2,47,19,271 respectively and finally we get the total sales for the year 2017 which is
2,52,85,832. The total of per unit in the year 2017 is 12,650 and it is the highest among all the
three years.
Table No. 5.2 Profit or loss in the year 2017
Particular Amount (in Rs)
Total Sales 2,52,85,832
Less- Total cost
Prime cost 2,42,91,845

Factory Overhead 42,292
Administrative Overheads 2,46,474
Selling and Distribution Overhead 1,38,660
2,47,19,271
Profit 5,66,561
The information in table no. 5.2 shows the total sales and the values of the total cost and profit of
the year 2017. The prime cost is 24291845 and the total overheads are 427426 which include the
total Factory overhead, Administration overhead and selling and distribution overhead and the
amounts are 42292, 246474, 138660 respectively. So, the profit for the year 2017 is Rs 566561.
Table No. 5.3 Statement of cost sheet for year ended 2018
Cost Sheet 2018
Particular Amount Amount Amount Amount Per unit


Add : Purchases
Cloth Purchase 12,42,612 36
Mill Store 1,29,626 20
Sizing Warping 17,30,896 12
X Yarn Purchases Sit 43,67,310 40
X Cloth Purchase 23,440 18
X Yarn Purchases 19,05,297 20
Yarn Purchase 2,62,500 16
Yarn Purchase 2,94,71,85 32
9
Yarn Purchase 5,04,560 3,96,38,100 30
Less : Materials Returned of Suppliers 1,495 3,96,36,60
5
4,35,80,35
5
RAW MATERIALS CONSUMED 4,22,51,90

Direct Labour -
Kmagar Bonus Expenses 3,02,152 21,58,761 300
Direct Expenses -
Sizing Warping Expenses 4,40,693 1000
Transport & Hamali Expenses 1,14,015 320
Vahifani Expenses 1,25,442 11,89,660 520

6
Factory Overhead
Repair 23,491 23,491 20
7

Audit Fee & consultation Fee 20,000 700
Bank Commission 8,051 10
Bank Insurance 35,677 200
Bank Interest 95,317 1110
Interest on Marchant 65,250 250
Rent & Taxes 52,191 3,94,706 170
3
Selling & Distribution Overhead

Travelling Expenses 12,450 2,05,885 400
8
Profit 6,98,862
Sales 4,69,23,27

0
direct labour, direct expenses and the amounts are 4,22,51,905, 21,58,761, 11,83,660
4,62,24,408 respectively and finally we get the total sales for the year 2018 which is 4,69,23,270.
The total of per unit in the year 2018 is 11,201 and among all the three years 2018 has the lowest
total of per unit.
Table No. 5.4 Profit and loss in the year 2018
Less- Total Cost
Prime cost 4,56,00,326
Factory Overhead 23,491
Administration Overhead 3,94,706
Selling and Distribution Overhead 2,05,885
4,62,24,409
Profit 6,98,862
The information in table no. 5.4 shows the total sales and the values of the total cost and
profit of the year 2018. The prime cost is 45600326 and the total overheads are 624083 which
include the total Factory overhead, Administration overhead and selling and distribution
overhead and the amounts are 23491, 394706, 205885 respectively. So, the profit for the year
2018 is Rs 698861.
Table No. 5.5 Statement of cost sheet for year ended 2019

Cost sheet
2019
Particulars Amount Amount Amount Amount Per unit


Add : Purchases
URD Purchases 30,89,838 55
Yarn Purchases (poly) 2,69,398 16
Yarn Purchases 19,58,554 22
Yarn Purchases 3,66,77,619 40
Mill Stores 66,543 25
Yarn Purchases 33,05,619 4,81,66,36 18
8
Less : Materials returned of suppliers 13,200 481,53,168
4,94,81,618
RAW MATERIALS CONSUMED 4,69,61,968
Direct Labour -
Kamgar Bonus Expenses 3,98,870 49,84,420 350
Direct Expenses -
Fright &Hamali 3,374 200
Repair 61,021 200
Transport &Hamali Expenses 22,040 300
Vahifani Expenses 1,67,260 400
Widing Expenses 4,800 14,65,515 50

3
Factory Overhead
Factory Expenses - 0 0
3


Audit Fee & Consultation Fee 25,000 750
Bank Commission 6,466.28 11
Bank Insurance 26,515 220
Bank Interest 7,20,563 1000
Brenja Insurance 22,827 120
Legal Fee 5,000 416
Let Payment Interest 2,343 195
Processing Charges (Bank) 41,300 860
Rent & Taxes 47,290 180
Short & Second 38,932 10,31,557
0
Selling & Distribution Overhead

Loading Charges 244 80
Travelling Expenses 16,600 16,844 480
4
Profit 6,53,206.7
SALES 5,51,13,51
1
direct labour, direct expenses and the amounts are 4,69,61,968 ,49,84,420, 14,65,515
5,44,60,304 respectively and finally we get the total sales for the year 2019 which is 5,51,13,511.
The total of per unit in the year 2019 is 11,420 in this year the cost has slightly increased.
Table No. 5.6 Profit and loss in the year 2019


Less- Total Cost
Prime Cost 5,34,11,903
Factory Overhead 0
Administration Overhead 10,31,557
Selling and Distribution Overhead 16,844
5,44,60,304
Profit 6,53,207
The information in table no. 5.6 shows the total sales and the values of the total cost and profit of
the year 2019. The prime cost is 53411903 and the total overheads are 1048401 which include
the total Factory overhead, Administration overhead and selling and distribution overhead and
the amounts are 0, 1031557, 16844 respectively. So, the profit for the year 2019 is Rs 653207.
Table No. 5.7 Profit and loss in 3 years
Sr no. Year Profit (in Rs)
1 2017 5,66,561
2 2018 6,98,862
3 2019 6,53,207

Graph 5.1
Interpretation
The above chart shows the Profit of every year i.e. 2017, 2018 and 2019. It shows the profit and
loss fluctuation in the period of these three years. The above chart shows the increase and
decrease in the profit rate. In the year 2019,2018 and 2017 the profit was 653207, 698862 and
566561 respectively. The profit was calculated by subtracting the prime cost-plus factory
overhead plus administrative overhead plus selling and distribution overhead with the total sales
of each year. We can see that the company is facing some loss but it is quite possible for the
company to recover the losses as they are focusing on the company needs and development.
Table No. 5.8 Sales in the year 2017, 2018 and 2019
Sr no. Year Sales (in Rs)
1 2019 5,51,13,511
2 2018 4,69,23,270
3 2017 2,52,85,832

Year
Sales
Graph 5.2
Interpretation
The above chart shows the Sales of every year i.e. 2017, 2018 and 2019. It shows the profit and
loss fluctuation in the period of these three years. The above chart shows the increase and
decrease in the profit rate. In the year 2019,2018 and 2017 the profit was 55113511, 46923270
and 25285832 respectively. We can see that the company’s sales are increasing in every year and
it is possible response for the business.
5.9 Processing and time taken in the manufacturing
Steps –
5.9.1 Raw material – (In Days)

5.9.2 Work in progress – (In Hours)
5.9.3 Finished goods – (In Days)
5.9.4 Stock – (In Days)
Table No. 5.9.1 Raw material

Sr no. Years Raw material

(in days)
1 2019 3
2 2018 4
3 2017 4
Raw material
Graph 5.3
Interpretation-
The above chart shows the total raw material consumption the year 2017, 2018 and 2019. It is
the presentation of the flow of the raw material in how much time it is been sent to work in
progress and for how much time it is been kept in the form of raw material. Here we can see that
the company stores the raw material for less than 5 days which is a good sign for a company.
Table No. 5.9.2 Work in progress
Sr no. Years Work in progress

(In hours)

1 2019 24
2 2018 24
3 2017 24
Work in progress
Graph 5.4
Interpretation-
The above chart shows the work flow of the year 2017, 2018 and 2019. It is the
presentation of the speed of production in the company. The company shows the capacity of
the production coverage rate. Here we can see that the production is completed is 24 hours
and it is relay fast for a textile company.
Table No. 5.9.3 Finished Goods
Sr no. Years Finished goods

(in days)

1 2019 1
2 2018 1
3 2017 1
Finished Goods
Graph 5.5
Interpretation-
The above chart shows the production completion speed of the year 2017, 2018 and
2019. The production is completed in a single day and is sent to stock. Here the production
completion is stable is all the three years.
Table No. 5.9.4 Stock
Sr no. Years Stock

(in days)

1 2019 1
2 2018 2
3 2017 4
Stock
Graph 5.6
Interpretation-
The above chart shows the sale of the finished good in the year 2017, 2018 and 2019. This chat
shows that in how many days the finished goods are sold to the customer. Here in the year 2017
the finished good were sold in maximum 4 days and where as in the year 2018 the sales
increased and where done in 2 days and so on in 2019 the sales were done in 1 day.
Findings: -
Specific

1. The company faced profit in all the three years 2017, 2018 and 2019 because they have a
proper control on the raw material flow. (Table no. 5.9.1)
2. The work of production is also done in maximum 24 hours which is a fix production time
and the labour are divided into 2 shifts. (Table no. 5.9.2)
3. The company receives the finished goods in 24 hours which is really fast production
process considering to the textile industries. (Table no. 5.9.3)
4. When the production is sent to stock after and in maximum 3 days it’s been sent to the
customers and the transport facilities are also been provided. (Table no. 5.9.4)
General
1. It was found that the accounting is computerized but the cost is not been properly
calculated, cost related information are not advance.
2. The purchases were not computerized it would have been easier if the purchase were
saved in the form of Excel so that the calculation will become easy and well organized.
RECOMMENDATION
1. The company should use proper computerized system in all the department.
2. Try to have proper communication with the accountant.
3. It should provide proper training to employees for handling the material and machines for
avoiding wastage of resources.

4. There is no need to increase the small expenses like stationary.
5. Optimum utilization of machinery and improve their productivity, it may help reduce cost
and increase profit.
CONCLUSION
The company is reached all the sections of the society. Even after having many companies
around Shruti Srushti Textiles has managed to capture a large market even after been in the rural
market. The company has built a very good relationship with their customers. The employees
accept their responsibilities wholeheartedly, accept that it is their responsibility to carry out a
part of their activities as they will be held accountable for the quality of their work. Building
good relationship is very essential for the success of the business. The final product of the

company is sometimes the raw material of other companies. The company has to undergo an
improvement in several areas if the company take some precaution to prevent the further losses.
BIBLIOGRAPHY
Books: -
 Bowlin, W. F. (2003). The Journal of Cost Analysis & Management . Cost modeling for
start-up businesses: A field study of Heartland Resource Technologies, LLC. .
 Chan, C. T. (2004). The Journal of Cost Analysis & Management . An analysis for the
degree of accuracy in construction project indirect costs. .
 Jacobs, F. a. ( 1999. ). The Journal of Cost Analysis & Management. Accuracy of service
cost allocations.

 Stoy, C. a. (2007). The Journal of Cost Analysis & Management . The CEEC code for
cost planning: Introduction and practical application. .
 Wilke, T. J. (2005). The Journal of Cost Analysis & Management . The project cost
variance analysis model: A project management tool.
Websites: -
 https://www.scribd.com/document/161346348/Cost-Sheet-Analysis
 https://www.scribd.com/doc/124543626/Cost-Sheet-Project-Report
 https://theinvestorsbook.com/cost-sheet.html
 http://www.yourarticlelibrary.com/cost-accounting/cost-sheet/cost-sheet-
definition-elements-of-cost-and-calculations/58055

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Sanjay Ghodawat University, Kolhapur.

SIP Project Report

“A STUDY OF COST SHEET ANALYSIS WITH RESPECT TO

MS. SHRAVYA BALAKRISHNA SHETTY

Under the guidance of

MRS. SHUBHANGI JAGTAP

in partial fulfillment of the requirements for the award of the Degree of

SANJAY GHODAWAT UNIVERSITY, KOLHAPUR

SCHOOL OF COMMERCE AND MANAGEMENT

B.COM – School of Commerce & Management, Kolhapur 1 |P a g e

B.COM – School of Commerce & Management, Kolhapur 2 |P a g e

SHRAVYA BALAKRISHNA SHETTY

B.COM – School of Commerce & Management, Kolhapur 3 |P a g e

Chapter Chapter Name Page no.

II. Company profile 11-12

2.1 History of the Company 11

2.2 Production method 12

2.3 Detail of the Company 12

2.4 Process of production 12

III. Conceptual Framework 12-20

IV. Research Methodology 21-22

4.1 Research methodology 21

4.2 Research Design 21-22

4.3 Data Collection 22

V. Data Analysis and Interpretation 23-38

B.COM – School of Commerce & Management, Kolhapur 4 |P a g e

B.COM – School of Commerce & Management, Kolhapur 5 |P a g e

Sr no. Table no. Description Page no.

2. 5.2 Profit and loss in the year 2017 25

4. 5.4 Profit and loss in the year 2018 28

5. 5.5 Statement of cost sheet for the year 2019 29-31

6. 5.6 Profit and loss in the year 2019 31

7. 5.7 Profit and loss in 3 years 32

8. 5.8 Sales in the year 2017, 2018, 2019 33

9. 5.9.1 Raw material 34

10. 5.9.2 Work in progress 35

11. 5.9.3 Finished goods 36

12. 5.9.4 Stock 37

LIST OF GRAPHS & CHARTS

Sr no. Graph/ Chart Description Page no.

B.COM – School of Commerce & Management, Kolhapur 6 |P a g e

1. 5.1 Profit and Loss in 3 years 32

2 5.2 Sales in the year 2017, 2018, 2019 33

3 5.3 Raw material 34

4 5.4 Work in progress 35

5 5.5 Finished goods 36

INTRODUCTION OF THE STUDY

1.1 Cost Sheet

B.COM – School of Commerce & Management, Kolhapur 7 |P a g e

1.2 Purpose of Cost Sheet

1. It gives the breakup of total cost under different elements.

1.3 ON THE BASIS OF BEHAVIOUR OF COST

B.COM – School of Commerce & Management, Kolhapur 8 |P a g e

1.3.1 FIXED COST

1.3.2 VARIABLE COST

1.3.3 SEMI-VARIABLE COST

This is also referred to as semi-fixed or partly variable cost. It remains constant up to a

1.4 Objectives of study

B.COM – School of Commerce & Management, Kolhapur 9 |P a g e

B.COM – School of Commerce & Management, Kolhapur 10 |P a g e

2.2 Production method-

B.COM – School of Commerce & Management, Kolhapur 11 |P a g e