ACMA Unit 7 - Cost Sheet Problems

1. Prepare a Cost sheet showing cost per cabinet and profit per cabinet from the following particulars. The cabinets
manufactured are named as ‘A’ and ‘B’. There is no opening or closing stock of cabinets.

Cabinet A Cabinet B

Materials Rs.12,400 Rs.13,232

Labour Rs.22,540 Rs.25,358

Number Sold 520 780

Selling Price per unit Rs.150 Rs.110

Works overhead comes to 100% on labour and office overheads to 25% on Works cost. What is the total profit
for the year as per the above particulars?

2. From the following particulars prepare a Cost Sheet showing the cost per item and the total cost per ton for the
period ended 31st March 2014.

Amount (Rs.) Amount (Rs.)

Raw Materials 33,000 Rent and Taxes – Office 500

Productive Wages 35,000 Water Supply 1,200

Unproductive Wages 10,500 Factory Insurance 1,100

Factory Rent and Taxes 7,500 Office Insurance 500

Factory Lighting 2,200 Legal Expenses 400

Factory Heating 1,500 Direct Expenses 3,000

Motive Power 4,400 Rent of Warehouse 300

Haulage 3,000 Depreciation of Plant & Machinery 2,000

Directors Fees – Works 1,000 Depreciation on Office Building 1,000

Directors Fees – Office 2,000 Depreciation on Delivery vans 200

Factory Cleaning 500 Bad Debts 100

Sundry Office Expenses 200 Advertising 300

Factory Stationary 750 Sales Department Salary 1,500

Office Stationary 900 Upkeep of Delivery van 700

 Loose Tools Written off 600 Bank Charges 50

Commission on Sales 1,500

The total output for the period has been 15,000 units.

3. The following data relate to the manufacturing of an article during the month of Dec. 2014.

➢ Raw Materials consumed Rs.52,000

➢ Direct Wages Rs.15,600

➢ Machine Hours Worked 1,100 Hours

➢ Machine Hour Rate Rs.4 per hour

➢ Office overhead 15% of Works Cost

➢ Selling overhead 25 paise per unit sold

➢ Units produced 15,000 units

➢ Units sold 13,500 units

➢ Selling price per unit Rs.7

Compile a cost sheet showing (a) Cost per unit (b) Profit for the period.

4. The Directors of a manufacturing company require a statement showing the production results of the business
for the month of April 2014. The cost accounts give the following information:

Amount (Rs.)

Stock in hand (1-4-2014)

- Raw Materials 25,500

- Finished goods 17,300

Stock in hand (30-04-2014)

- Raw Materials 26,200

- Finished Goods 15,000

Purchase of Raw materials 22,000

Work-in-progress (1-4-2014) 8,200

Work-in-progress (30-4-2014) 9,000

Sale of Finished Goods 72,000

Direct Wages 17,100

 Non-productive wages 800

Stores 100

Office Expenses 3,000

Works Expenses 3,000

Selling and Distribution Expenses 4,200

The following information is required:

a) The value of materials consumed (b) Works Cost (c) Total cost of production (d) Cost of Goods Sold (e) Profit
(f) Percentage of works overhead to productive wages (g) Percentage of office on cost to works cost (h)
Percentage of Selling and distribution expenses to sales.

5. On 15th August 2015 the Standard Cycle Co. was required to quote for a contract for the supply of 500 bicycles.
From the following details, prepare a statement showing the price to be quoted to give the same percentage of
net profit on turnover as was realized during the six months up to 30th June 2015.

Stock of materials on 1st January 2015 - Rs.50,000

Stock of materials on 30th June 2015 - Rs.7,000

Purchase of materials during 6 months up to 30th June - Rs.75,000

Factory Wages - Rs.1,50,000

Indirect Charges - Rs.25,000

Sales - Rs.2,70,000

Completed Stock-in-hand on 1st January 2015 - NIL

Completed stock-in-hand on 30th June 2015 - Rs.50,000

The number of bicycles manufactured during the six months was 2000 including those sold and those in stock at
the end of the period. The bicycles to be quoted for are to be of uniform size and quality and similar to those
manufactured during the six months to 30th June 2015. As from 1st August, the cost of factory labour has
increased by 10% and that of materials by 15%.