CHAROTAR UNIVERSITY OF SCIENCE AND TECHNOLOGY

(CHARUSAT)
INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT(IIIM)
FACULTY OF MANAGEMENT STUDIES(FMS)

COSTING AND CONTROL SYSTEMS

MB744.4
ASSIGNMENT ON ‘CASE STUDY’

WAGA GAMLATHLAGE JANAKA RUMESH GAMLATH

21MBA140
SUBMITTED TO: Dr. GAURAV RAJPUT
CASE STUDY ON AMUL ICE-CREAM’S COST ANALYSIS

COST SHEET OF AMUL ICE-CREAM

PARTICULARS TOTAL RS. PER UNIT
RAW MATERIAL CONSUMED
Opening stock of raw materials 13,00,000 13
Add: Net purchase of raw material
Dry fruits 2,50,000 2.5
Milk 3,00,000 3
Flavors 3,50,000 3.5
Other ingredients 2,00,000 2
Sugar 2,50,000 2.5
Cup 1,50,000 1.5
Cutlery 1,00,000 1
Seasonal fruits 50,000 0.5
Waffle 1,00,000 1
Cocoa 1,50,000 1.5
Add: Expense on purchase
carriage inwards 1,84,500 1.845
Add: Direct labor 5,30,000 5.3
Add: Other Direct Expenses 2,20,000 2.2

PRIME COST 41,34,500 41.345

Add: Factory overheads

Depreciation 2,50,000 2.5
Rent 1,00,000 1
Power 1,75,000 1.75
Insurance 1,50,000 1.5
Supervisor salary 60,000 0.6
Electricity 70,000 0.7
Running machine expense 1,00,000 1

FACTORY COST OR WORK COST 50,39,500 50.395

Add: Office & Administrative

overheads
Office salaries 10,00,000 10
 Computer expense 1,20,000 1.2
Telephone 10,000 0.1
Carriage outwards 60,000 0.6

OFFICE COST 62,29,500 62.35

Add: selling and distribution

overheads
advertisement expense 6,00,000 6
Delivery vehicle expenses for sales 3,50,000 3.5
Patrol expenses for above Delivery
vehicles 1,75,000 1.75
packaging 50,500 0.505

COST OF SALES 74,05,000 74.05

PROFIT (25% of cost of sales) 18,51,250 18.51

SALES 92,56,250 92.56

WORKING NOTES: -
Assume selling price = 100
Profit = 20/80
20/80*100=25%
25% of total cost
So, 100% 74,05,000 profits
25% (?)
25*74,05,000/100 = 18,51,250 profit