ASSIGNMENT

COST SHEET & BUDGETING

BY,
KARAN KUMAR-320A16

TO,
DR. MANJULA SHASTRI
COST SHEET
Q.1

Solution:
(a) Prime cost- 1,66,500 (b) Work Cost- 191,700 (c) Cost of sales- 216,300 (d) Net Profit-
14,000

Particulars   Total Cost  Cost Per Unit  

  
Direct Material         
Opening Stock of material                                      
+ Purchases of material                                       75,000    
Exp on purchases  1,500   
-Closing Stock of material                                        
Material Consumed    76,500       
Direct Wages    75,000     
Direct Expenses                  
Prime Cost    1,66,500      
Add: Factory or Work Expenses          
  Indirect Wages  10,000   
  Factory Rent   5,000     
  Depreciation  2,500     
+Opening of WIP       
-CLOSING OF WIP     
MD Remuneration  4,000   
Factory expenses  3,700   
    191,700    
Factory or Work Cost  
 
  Admin Overheads         
Office salary  1,500   
Office expenses  9,00   
MD Remuneration  2,000   
Depreciation office furniture  1,100   
Cost of Production     197,200    
Add: Opening Stock of Finished Goods        
Less: Closing Stock of Finished Goods        
Cost of Goods Sold        
Add: Selling & Distribution Expenses          
  Carriage Outward  1,000     
Adverting  2,000   
Travelling expense of salesman  1,100   
Salesman salary  2,000   
MD Remuneration  6,000   
Commission on issue of shares  6,000   
Selling expenses  1,000   
Cost of Sales    216,300    
Net Profit    14,000    
Sales   2,30,000   
 
 
Q.2

Solution:
(a) Prime cost- 521,350 (b) Factory cost- 557,200 (c) Total cost- 566,700 (d) Net Profit-
58,900 (e) Factory overheads-   Labor welfare expenses, Factory Rent, Depreciation, Gas and
water, Power, Factory supervision, Haulage hire, Lighting

Particulars   Total Cost Cost Per Unit  

  
Direct Material        
Opening Stock of    
material                                 
+ Purchases of   3,22,000  
material                                      
Less purchases returns  13,000 
Less sale of scrap 450
-Closing Stock of     
material                                  
Material Consumed   308,550      
Direct Wages     2,10,000   
Direct Expenses           2,800      
Prime Cost   521,350     
Add: Factory or Work Expenses         
  Labor welfare expenses  450 
  Factory Rent    11,600   
  Depreciation   8,600   
Gas and water  2,800   
Power  2,000 
Factory supervision 3,500
Haulage hire 6,000
Lighting 900
   557,200    
Factory or Work Cost  
 
  Admin Overheads        
Drawing office salaries  3,100 
 Office expenses  6,400 
Cost of Production    566,700    
Add: Opening Stock of Finished Goods       
Less: Closing Stock of Finished Goods       
Cost of Goods Sold       
Add: Selling & Distribution Expenses         
  Showroom telephone expenses  4,600   
Misc. Selling expense  3,200 
Travelling expense  1,500 
Showroom rent 3,000
Provision for bad debts 2,100
Cost of Sales   581,100    
Net Profit   58,900    
Sales    6,40,000 
Q.3 

Solution:

Particulars   Total Cost  Cost Per Unit  

  
Direct Material         
Opening Stock of material                                      
+ Purchases of material                                           
Exp on purchases     
-Closing Stock of material                                        
Material Consumed           
Direct Wages         
Direct Expenses                  
Prime Cost          
Add: Factory or Work Expenses          
  Indirect Wages     
  Factory Rent        
  Depreciation       
+Opening of WIP       
-CLOSING OF WIP     
        
Factory or Work Cost  
 
  Admin Overheads         
Office expense     
     
Cost of Production         
Add: Opening Stock of Finished Goods        
Less: Closing Stock of Finished Goods        
Cost of Goods Sold        
Add: Selling & Distribution Expenses          
  Carriage Outward       
Adverting     
Travell's commission     
Cost of Sales        
Net Profit        
Sales