Direct Material Cost

Purchases 832000
ADD : Opening stock 188000
Less: Closing Stock 200000
Direct Wages
Frieght Inward
Prime Cost
ADD: FOH
Repairs to Plant & Machinery 42,400
Rent, Rates & Taxes - Factory 12,000
Electricity Charges (factory) 48, 48,000
Fuel (for boiler) 6 64,000
Manager Salary 9,600
Depreciation Written Off- Plant & Machinery 28,400
Indirect Wages 16,000
Factory Cost/Works Cost
ADD: AOH
Rent, Rates & Taxes - Office 6,400
Salaries to Administrative Staff 40,000
Depreciation Written Off – Furniture 2,4 2,400
Director’s Fees 24,000
Manager Salary 38,400
General charges 24,800
Cost of Production
ADD: SDOH
Freights-Outward 20,000
Traveling Expenses 12,400
Salesmen’s Salaries and Commission 33,6 33,600
Total Cost
Profit
Sales
 820000
238400
32000
1090400

220,400
1,310,800

136,000
1,446,800

66,000
1,512,800
378200
1,891,000
Direct Material Cost
Purchases 4,750,000
ADD : Opening stock 400,000
Less: Closing Stock 500,000 4,650,000
Direct Wages 1,750,000
Carriage Inwards 125,000
Prime Cost 6,525,000
ADD:FOH
Works Managers Salary 300,000
Salary-Factory Employees 300,000
Factory Rent & Insurance 72,500
Power Expenses 95,000
Other Production Expenses 420,000
Loose tools written off 10,000
1,197,500
ADD: Opening Stock of WIP 150,000
Less: Closing Stock of WIP 100,000 1,247,500
Factory Cost/Works Cost 7,772,500
ADD: AOH
Salary-Office Staff 200,000
General Expenses 320,000
Bank Charges 5,000 525,000
Cost of Production 8,297,500
ADD: Opening Stock of Finished Good 60,000
Less: Closing Stock of Finished Good 150,000
Cost of Goods to be Sold 8,207,500
ADD: SDOH
Salary-Salesman 100,000
Selling Expenses 92,500 192,500
Total Cost 8,400,000
Profit(b/f) 200,000
Sales 8,600,000
Particulars Car Insurance
Revenue 900.00 300.00
Less: Direct Costs
Documentation Cost 6.00
Direct Sales Expense 500.00
Gross Profit 400.00 294.00
Less: Indirect Costs
Salesmen Salary 83.33 50.00
Rent 41.67 25.00
Electricity 41.67 25.00
Advertisement 83.33 50.00
Net Profit 150.00 144.00
Profit to Sales(%) 16.67 48.00
Finance Total Rs in lakhs
384.00 1584.00

16.00 22.00
500.00
368.00 1062.00

66.67 200.00
33.33 100.00
33.33 100.00
66.67 200.00
168.00 462.00
43.75 29.17
Direct Material cost
Purchases 3,650,000
Add: Opening Stock of Material 800,000
Less: Closing Stock of Material 1,060,000
Direct Labour Cost 1,750,000
Prime Cost
Add: FOH 1,000,000
Add: Opening Stock of WIP 1,050,000
Less: Closing Stock of WIP 1,450,000
Factory Cost
Add: AOH
Cost of Production
Add: Opening Stock of FG
Less: Closing Stock of FG
Cost of Goods to be Sold
Add: SDOH
Total Cost
Profit
Sales
3,390,000

5,140,000

600,000
5,740,000
250,000
5,990,000
1,760,000
1,900,000
5,850,000
350,000
6,200,000
1,300,000
7,500,000
Particulars Current Year Next Year
Cost % Amount Cost % Amount
Direct Material 0.30C 362.4 0.39C 471.12
Direct Wages 0.40C 483.2 0.44C 531.52
Prime Cost 0.7C 845.6 0.83C 1002.64
Add: Overheads 0.30C 362.4 0.30C 362.4
Total Cost C 1208 1.13C 1365.04
Profit P 392 0.60P 234.96
Sales 1600 1600 1600 1600
Particulars Cost % on Sales Amount
Direct materials 0.125 625
Direct Labour 0.175 875
Prime Cost 0.3 1500
Add: FOH 0.1 500
Factory Cost 0.4 2000
Add: AOH 0.4 2000
Cost of Production 0.8 4000
Add: SDOH(B/f) 0.05 250
Total Cost 0.85 4250
Profit 0.15 750
Sales 1 5000
Particulars Qty Cost Per Unit Total
Raw Material Consumed 18000 4.44 80000.00
Direct Wages 18000 1.11 20000.00
Prime Cost 18000 5.56 100000.00
Add: FOH(1200hrs*Rs10) 18000 0.67 12000.00
Factory Cost 18000 6.22 112000.00
Add:AOH 18000 1.24 22400.00
Cost of Production 18000 7.47 134400.00
Less: Closing stock of FG 200 7.47 1493.33
Cost of Goods to be Sold 17800 7.47 132906.67
Add: SDOH 17800 2.00 35600.00
Total Cost 17800 9.47 168506.67
Profit 17800 3.33 59205.05
Sales 17800 12.79 227711.71
Particulars
Direct Material
Direct Wages
Factory Rent
Power
Depreciation
Sundries
Total overheads

Particulars
Overheads as per Primary Distribution
X = 16910 - 10% =15219
Y= 28191 - 5% = 26781
Total Overheads
Machine Hours
Overhead Rate
Basis A B C
Only to Service Depts
Only to Service Depts
Area in Sqft(2:1:2:1:2) 10000 5000 10000
HP*M.hrs(5:8:8:1.5:2.5) 5000 8000 8000
Cost of Asset(2:4:2:1:1) 2000 4000 2000
Direct Labour(5:2:8:1:2) 25000 10000 40000
42000 27000 60000

Basis A B C
42000 27000 60000
45:15:30 7609.5 2536.5 5073
60:35:00 16914.3 9866.7
66523.8 39403 65073
1000 2000 4000
66.5238 19.702 16.268
X Y Total
2000 1000 3000
1000 2000 3000
5000 10000 40000
1500 2500 25000
1000 1000 10000
5000 10000 90000
15500 26500 171000
Particulars Basis X y
Overheads as per Primary
Distribution 30000 26000
Stores = 4000(5:3:2) Value of Stores Requisition 2000 1200
Time Keeping and Accounts =
3000(4:3:3) No of Workers 1200 900
Power=1600(3:3:2) Hp 600 600
Canteen=1000(4:3:3) No of Workers 400 300
Total Overheads 34200 29000
Z

24000
800

900
400
300
26400
Particulars Basis A B C P Q
Overheads as per Primary
Distribution 7810 12543 4547 4000 2600
P=4000 3:4:2:1 1200 1600 800 400
Q=3000 1:2:5:2 300 600 1500 600
P=600 3:4:2:1 180 240 120 60
Q=60 1:2:5:2 6 12 30 12
P=12 3:4:2:1 3.6 4.8 2.4 1.2
Q=1.2 1:02:05 0.15 0.3 0.75
Total Overheads 9499.75 15000.1 7000.15
Working Time 1000 2500 1400
Overhead Rate/ Hour 9.49975 6.00004 5.000107
Particulars Basis A B C X
Overheads as per
Primary Distribution 42000 27000 60000 15500
x= 15500 45:15:30:10 6975 2325 4650
Y=28050 60:35:05 16830 9818 1403
x=1403 45:15:30:10 631 210 421
Y=140 60:35:05 84 49 7
X=7 45:15:30 3 1 3
Total Overheads 66523 39403 65074
Machine Hours 1000 2000 4000
66.523 19.702 16.269
Y

26500
1550

140
Particulars Basis X Y

Overheads as per
Primary Distribution 193000 64000
P=45000 20:25:17:10:8:10 10000 12500
Q= 80000 4:3:4:6:3 16000 12000
R= 133000 6:3:3:2 57000 28500
S= 66000 4:03:04 24000 18000
Total Overheads 300000 135000
Direct Labour Hour 4000 3000
Recovery Rate/Hour 75 45
Z P Q R S

83000 45000 75000 105000 30000

8500 5000 4000 5000
16000 24000 12000
28500 19000
24000
160000
4000
40
Particulars Amount Rate per Hour
Rent(780*1/5) 156
Light(288*2/12) 48
Foreman Salary(6000*1/4) 1500
Insurance Premium 35
Cotton Waste 60
Total - Fixed Costs 1799 1.67
Repair Charges 0.06
Power Consumption 0.30
Depreciation 0.50
Cost per hour 2.53
Particulars DM DL PC DL hour M. hour
Material 15000 15000 15000 15000 15000
Labour 20000 20000 20000 20000 20000
Prime Cost 35000 35000 35000 35000 35000
Overheads 6000 6666 6363 7000 6000
Total Cost 41000 41666 41363 42000 41000
Profit 41000 41666 41363 42000 41000
Sales 82000 83332 82726 84000 82000
Dr Process 1 A/c
Particulars Qty Rate Amount
To Materials A/c 15000.00 0.10 1500.00
To Labour A/c 7500.00
To Expenses 1575.00
15000.00 10575.00

Particulars P1 P2 P3
Input 15000.00 14250.00 13650.00
Less: Normal loss 450.00 855.00 1365.00
Expected Output 14550.00 13395.00 12285.00
Less: Actual Output 14250.00 13650.00 12012.00
Abnormal Loss/Gain 300.00 255.00 273.00

Dr Process 2 A/c
Particulars Qty Rate Amount
To P1 A/c 14250.00 0.72 10246.50
To Materials A/c 2250.00
To Labour A/c 12000.00
To Expenses 1425.00
To Abnormal Gain A/c 255.00 1.90 484.50
14505.00 26406.00

Dr Process 3 A/c
Particulars Qty Rate Amount
To P2 A/c 13650.00 1.90 25978.50
To Materials A/c 750.00
To Labour A/c 9750.00
To Expenses 3015.00
39493.50

Dr Normal Loss A/c

Particulars Qty Rate Amount
To P1 A/c 450.00 0.25 112.50
To P2 A/c 855.00 0.50 427.50
To P3 A/c 1365.00 1.00 1365.00
2670.00 1905.00

Dr Abnormal Loss A/c

Particulars Qty Rate Amount
To P1 A/c 300.00 0.72 216.00
To P3 A/c 273.00 3.10 846.30

1062.30

Dr Abnormal Gain A/c

Particulars Qty Rate Amount
To Bank A/c 255.00 0.50 127.50
To P/L A/c(Profit) 357.00
255.00 484.50
 Cr
Particulars Qty Rate Amount
By Normal Loss A/c 450.00 0.25 112.50
By Abnormal Loss A/c 300.00 0.72 216.00
By P2 A/c(b/f) 14250.00 0.72 10246.50
15000.00 10575.00

Cr
Particulars Qty Rate Amount
By Normal Loss A/c 855.00 0.50 427.50

By P3 A/c(b/f) 13650.00 1.90 25978.50

14505.00 26406.00

Cr
Particulars Qty Rate Amount
By Normal Loss A/c 1365.00 1.00 1365.00
By Abnormal Loss A/c 273.00 3.10 846.30
By Finished Good A/c 12012.00 3.10 37282.20

39493.50

Cr
Particulars Qty Rate Amount
By Bank A/c 450.00 0.25 112.50
By Bank a/c 855.00 0.50 427.50
By Bank A/c 1365.00 1.00 1365.00
2670.00 1905.00

Cr
Particulars Qty Rate Amount
By Bank A/c 300.00 0.25 75.00
By Bank A/c 273.00 1.00 273.00
By P/L A/c(Loss) 714.30
1062.30

Cr
Particulars Qty Rate Amount
By P2 A/c 255.00 1.90 484.50

255.00 484.50
Dr Process 1 A/c
Particulars Qty Rate Amount
To Materials A/c 15000.00 0.10 1500.00
To Labour A/c 7500.00
To Expenses a/c 1575.00

15000.00 10575.00

Particulars P1 P2 P3
Input 15000.00 14250.00 13650.00
Less: Normal Loss 450.00 855.00 1365.00
Expected Output 14550.00 13395.00 12285.00
Actual Output 14250.00 13650.00 12012.00
Abnormal Loss/Gain 300.00 255.00 273.00

Dr Process 2 A/c
Particulars Qty Rate Amount
To P1 A/c 14250.00 0.72 10246.50
To Materials A/c 2250.00
To Labour 12000.00
To Expenses A/c 1425.00
To Abnormal Gain A/c 255.00 1.90 484.50
14505.00 26406.00
Dr Process 3 A/c
Particulars Qty Rate Amount
To P2 A/c 13650.00 1.90 25978.50
To Materials A/c 750.00
To Labour 9750.00
To Expenses A/c 3015.00
13650.00 39493.50
 Cr
Particulars Qty Rate Amount
By Normal Loss A/c 450.00 0.25 112.50
By Abnormal Loss A/c 300.00 0.72 216.00
By P2 A/c 14250.00 0.72 10246.50

15000.00 10575.00

Cr
Particulars Qty Rate Amount
By Normal Loss a/c 855.00 0.50 427.50

By P3 A/c 13650.00 1.90 25978.50

14505.00 26406.00
 Cr
Particulars Qty Rate Amount
By Normal Loss A/c 1365.00 1.00 1365.00
By Abnormal Loss A/c 273.00 3.10 846.30
By FG A/c 12012.00 3.10 37248.20

13650.00 39493.50
Dr Process 1 A/c
Particulars Qty Rate Amount
To Materials A/c 1000.00 3.00 3000.00
To Sundry Material A/c 2600.00
To wages 2000.00
To Production Overhead 2000.00
1000.00 9600.00

Particulars P1 P2 P3
Input 1000.00 950.00 840.00
Less: Normal Loss 50.00 95.00 84.00
Expected Output 950.00 855.00 756.00
Actual Output 950.00 840.00 750.00
Abnormal Loss/Gain 0.00 15.00 6.00

Dr Process 2 A/c
Particulars Qty Rate Amount
To P1 A/c 950.00 10.00 9500.00
To Sundry Materials 1980.00
To wages 3000.00
To Production Overhead 3000.00
950.00 17480.00
Dr Process 3 A/c
To P2 A/c 840.00 20.00 16800.00
To Sundry Materials 2962.00
To wages 4000.00
To Production Overhead 4000.00
840.00 27762.00
 Cr
Particulars Qty Rate Amount
By Normal Loss A/c 50.00 2.00 100.00

By P2 A/c 950.00 10.00 9500.00

1000.00 9600.00

Cr
Particulars Qty Rate Amount
By Normal Loss 95.00 4.00 380.00
By Abnormal Loss A/c 15.00 20.00 300.00
By P3 A/c 840.00 20.00 16800.00

950.00 17480.00
 Cr
By Normal Loss 84.00 6.00 504.00
By Abnormal Loss 6.00 36.05 216.30
By FG A/c 750.00 36.05 27041.70

840.00 27762.00
Particulars Per Unit Cost - X
Sales 55
Less: Variable Costs
Material Cost 15
Labour 12
Variable OH 12
Contribution 16
Less : Fixed Cost 9
Profit 7
Per Unit Cost - Y
48

15
9
9
15
9
6
 Per Unit Cost - Per Unit Cost -
Particulars 80000 Units 20000 Units
Sales 17 12
Less: Variable Costs
Material Cost 4 4
Skilled Labour 3 3
Unskilled Labour 2 2
Variable OH 2 2
Contribution 6 1
Less : Fixed Cost 4Nil
Profit 2 1
 Particulars Make Buy
Purchase Cost nil 22.00
Direct Mtl 5
Direct Labour 8
VFOH 6
FOH 5 3.00
Total Cost 24 25.00
Inflow(Rent) nil -1.50
Revised Cost 24 23.50
Particulars Amount Amount
Sales(1000*15) 15000
Less: Variable Cost
V Mfg OH (1100*Rs 7) 7700
Less: Closing Stock(100*Rs7) 700
7000
Add: V SOH(1000*0.5) 500 7500
Contribution 7500
Less: Fixed Cost
F Mfg OH 2200
F SOH 400 2600
Profit 4900

Particulars Amount Amount

V Mfg OH 7700
F MFG OH 2200
Factory Cost 9900
Less: Closing Stock (100*Rs 9) 900
COGS 9000
Add: V SOH(1000*0.5) 500
F SOH 400 900
Total Cost 9900
Profit(b/f) 5100
Sales 15000
Particulars X Y Z
Selling Price 30.00 40.00 50.00
Less: Variable Cost
Direct Material 5.60 3.20 12.00
Direct Labour 8.00 16.00 12.00
VOH 5.60 11.20 8.40
Selling Commision 3.00 4.00 5.00
Contribution 7.80 5.60 12.60
Raw Material Consumption 0.70 0.40 1.50
Contribution/Kg of Mtl 11.14 14.00 8.40
Rank II I III
Revised Costs- Z
50.00

12.00
15.00
10.50
5.00
7.50
Rank Product MKT Demand RMtl/Unit Total Rmtl
I Y 6000 0.4 2400
II X 8000 0.7 5600
III Z 1600 1.5 2400
10400
Contribution/Unit Total Contribution
5.6 33600
7.8 62400
12.6 20160
116160