COST ACCOUNTING CIA 3A

SANKALP KASHYAP 19212450

SANSKAR GUPTA 19212451
ADITYA BIRLA 19212486
YUVRAJ SINGH 19212479
INTRODUCTION
Mahindra and Mahindra Limited is an Indian worldwide car fabricating organization
settled in Mumbai, Maharashtra, India. It was set up in 1945 and was named
Muhammad and Mahindra at that point, and later renamed Mahindra and
Mahindra. It is perhaps the biggest automaker created in India under the Mahindra
Group, an Indian organization, and the biggest farm vehicle producer on the planet.
In the 2018 Fortune India 500, India positioned seventeenth among the top Indian
organizations. Its fundamental rivals in the Indian market incorporate Maruti Suzuki
and Tata Motors.
Mahindra and Mahindra, brands its items as "Mahindra", produces SUVs, cantina
vehicles, pickups, lightweight business vehicles, heavyweight business vehicles, two
wheeled cruisers and farm trucks. Mahindra keeps up business relations with
unfamiliar organizations like Renault SA, France. They also started collecting the
Jeep CJ3 in 1954, and light business vehicles in 1965. In 1979 the authorized
gathering of Peugeot diesel four-chamber motors and transmissions started, and in
1982 a tie-up with Kia Motors to fabricate their four-speed KMT90 transmission
and move case was announced. Mahindra’s MM range was a pillar of the
arrangement and was in the end likewise offered with a 1.8-liter Isuzu petroleum
motor notwithstanding International and Peugeot diesels. Mahindra began making
traveler vehicles initially with the Logan in April 2007 under the Mahindra Renault
joint venture made its lady passage into the hefty trucks portion with the Mahindra
Truck and Bus Division, the joint endeavor with International Truck, USA.

Mahindra produces a wide scope of vehicles, including MUVs, LCVs and three-
wheelers. It makes more than 20 models of vehicles, including bigger, multi-utility
vehicles like the Scorpio and the Bolero. It in the past had a joint endeavor with
Ford called Ford India Private Limited to manufacture traveler vehicles.
MANUFACTURING PROCESS
There are three main assembly lines, trim, chassis and body drop. On the first the body panels are
welded together, the doors and windows are installed, and the body is painted and trimmed
(with upholstery, interior hardware, and wiring). On the second line the frame has the springs,
wheels, steering gear, and power train (engine, transmission, drive shaft, and differential)
installed, plus the brakes and exhaust system. The two lines merge at the point at which the car is
finished except for minor items and necessary testing and inspection.
TRIM:
Press Shop
This is where the production process starts, with most of the Metal parts getting pressed out of
Steel Sheets. The door panels, Roof, Bonnet, Boot Lid etc. are typically pressed in to form the
basic structure of the automobile. The pressing process is a multi-step process where the sheets
are pressed into shape in stages.

Weld Shop
The Weld shop is typically the place where the automobile is born. The point of birth for most
design cars is where the Underbody takes shape from the Pressed parts. It can be the marriage of
the Underbody front & rear or in some cases the entire underbody can be a single pressed unit.
In stages, the Side panels, the roof are then welded to the underbody and the automobile begins
to take its shape. The welding process is typically Tungsten Inert Gas (TIG) welding, mostly done
by Robots and is a treat to watch, wherein you have all these multi axis robotic arms work in
unison and utmost precision.

Chassis
The chassis of the car is the baseline component. All other parts are integrated on, or within the
chassis. The typical car or truck is constructed from the ground up (and out). The frame is the
main structural member to which all other mechanical chassis parts and the body are assembled
to make a complete vehicle. The frame forms the base on which the body rests and from which
all subsequent assembly components follow. The frame is placed on the assembly line and
clamped to the conveyer to prevent shifting as it moves down the line. From here the automobile
frame moves to component assembly areas where parts that are sequentially applied to the
chassis include the engine, complete front and rear suspensions, gas tanks, rear axles, rear-end
and half-shafts, transmission, and drive shafts, gear boxes, steering box components, wheel
drums, and braking systems are sequentially installed.
An off-line operation at this stage of production mates the vehicle’s engine with its transmission.
Workers use robotic arms to install these heavy components inside the engine compartment of
the frame. After the engine and transmission are installed, a worker attaches the radiator, and
other bolts it into place. Because of the nature of these heavy component parts, articulating
robots perform all of the lift and carry operations while assemblers using pneumatic wrenches
bolt component pieces in place. Careful ergonomic studies of every assembly task have provided
assembly workers with the safest and most efficient tools available.

Body:
Generally, the floor pan is the largest body component to which a multitude of panels and braces
will subsequently be either welded or bolted. As it moves down the assembly line, held in place
by clamping fixtures, the shell of the vehicle is built. First, the left and right quarter panels are
manually disengaged from pre-staged shipping containers and placed onto the floor pan, where
they are stabilized with positioning fixtures and welded.

The front and rear door pillars, roof, and body side panels are assembled in the same fashion. The
shell of the automobile assembled in this section of the process lends itself to the use of robots
because articulating arms can easily introduce various component braces and panels to the floor
pan and perform a high number of weld operations in a time frame and with a degree of accuracy
no human workers could ever approach. Robots can pick and load 200-pound (90.8 kilograms)
roof panels and place them precisely in the proper weld position with tolerance variations held to
within .001 of an inch. Moreover, robots can also tolerate the smoke, weld flashes, and gases
created during this phase of production.
The body is built up on a separate assembly line from the chassis. Operators perform most of the
welding on the various panels and bolt the parts together. During welding, component pieces are
held securely in a jig while welding operations are performed. Once the body shell is complete, it
is attached to an overhead conveyor for the painting process. The multi-step painting process
entails inspection, cleaning, undercoat (electrostatically applied) dipping, drying, topcoat
spraying, and baking.

As the body moves from the isolated weld area of the assembly line, subsequent body
components including fully assembled doors, deck lids, hood panel, fenders, trunk lid, and
bumper reinforcements are installed. Although robots help workers place these components
onto the body shell, the workers provide the proper fit for most of the bolt-on functional parts
using pneumatically assisted tools.
 Process Accounts

Process A (TRIM) A/c

particulars units amount particulars unit amount

To input 20,000 40,000 By normal loss 2000 4000
To direct material 1,20,000 By abnormal loss 12900
To direct labor 122,706 By process B 5100
To direct expense 80,000
To factory expense 1,000,000
To production overhead 1,136,057

20,000 2,498.763.4 20,000 2,498.763.4

Abnormal Loss A/c

particulars units amount particulars unit amount

To process A A/c 12900 1,787,913.8 By sales A/c 12900 25800
By P&L A/c - 1,762,113.8

12900 1,787,913.8 12900 1,787,913.8

Process B (Chassis) A/c

particulars units amount particulars unit amount

To process A 5100 706,849.6 By normal loss 255 765
To direct material 158457.2 By abnormal loss 145 107,533.2
To direct labor 121,306 By process C 4700 3,485,569.2
To direct expense 119,528
To factory expense 1,287,727.2
To production 1,200,000
overhead
5100 3,593,867.4 5100 3,593,867.4
Abnormal Loss A/C

particulars units amount particulars unit amount

To process B A/c 145 107,533.6 By sales A/c 145 435
By P&L A/c - 107,098.6
145 107,533.6 145 107,533.6
 Process C (Body) A/c

particulars units amount particulars unit amount

To process B 4700 3,485,569 By normal loss 705 2820
To direct material 139,238.6 By Stock finished 4300 6,068,012.2
To direct labor 108,640.2
To direct expense 102,264.2
To factory expense 780,024.2
To production overhead 1,024,690
305
To abnormal gain 430,405.6

5005 6,070,832.2 5005 6,070,832.2

Abnormal Gain A/c

particulars units amount particulars unit amount

To normal loss A/c 705 1220 By process C A/c 705 430,405.6
To P&L A/c 429,185.6
705 430,405.6 705 430,405.6

COST SHEET
PARTICULARS AMOUNT (RS. In AMOUNT (RS. In COST PER UNIT
crore) crore)

Direct Materials
(a) Spare parts & accessories for sale
253.55

(b) Bodies & trailers for mounting on 467.98

chassis 214.43

Direct Labour 323.00

Direct Expense 2,270.30
Prime Cost 3,061.28 0.007

Factory Overheads
Processing Charges 388.59
Stores, spare parts & tools consumed 236.73

Freight, transportation, port charges 185.47

Repairs to plant, machinery 25.62

Power & Fuel 214.52
Insurance 21.44
Lease Rentals in respect of Plant & 8.84
Machinery

Depreciation 382.60
Work Cost (Gross) 9,337.22 0.023

Opening WIP 793.91

Opening WIP 793.91

Less: Closing WIP (651.93) 141.98 0.0003

Works Cost (Net) 9,479.20 12,540.48 0.032

Administrative Overheads

Salaries 323.99

Repairs to building 20.37

Rent 9.37

Rates & Taxes 22.16 375.89 0.0009

Total Cost 12,916.37 0.033

Add: Opening Finished Goods 0

Less: Closing Finished Goods 0

Cost of production 12,916.37 0.033

Selling and Distribution Expenses

120.57
Incentive/Commission to dealers

25.92 270.09 0.0006

Commission & Brokerage on sales

Cost of sales 13,186.46 0.033

Profit 2,022.28 0.005

15,208.74 0.038
Sales