FLOVELY PROFESSIONAL UNIVERSITY

Mittal School of Business

Name of Faculty: Dr. Archna
Course Code: ACC204 Course Title: Cost Accounting
Academic Task No: 1 Academic Task Title: CA1
Date of Allotment: 23/08/23 Date of Submission: 05/09/23
Student Roll No: A10 Student Reg. No: 12202323
Term: 1 Section: Q2218
Max. Marks: 30 Marks. Obtained:
Evaluation Parameters

Learning Outcomes: I have learn how to make the cost sheet of company and how to find in annual report
the subheads.
Declaration:
I declare that this Assignment is my individual work. I have not copied it from any other student’s work or
from any other source except where due acknowledgement is made explicitly in the text, nor has any part
been return for me by any other person.
Evaluation Criterion: Rubrics on different parameters.
AMAN KUMAR
Student’s Signature:

Evaluator’s Signature:
Evaluator’s Comments
General Observation Suggestions for Best part of assignment
Improvements

Evaluator’s Signature and Date:

1
 COMPANY’S PROFILE

Nestle India Ltd. is a subsidiary of the Swiss multinational food and beverage conglomerate
Nestle S.A. Nestle India is a leading player in the Indian food and beverage industry, known
for its diverse product portfolio and strong presence in the market. With a history dating
back to 1866, Nestle has grown to become one of the world's largest and most recognizable
consumer goods companies.
Nestle India's journey in the Indian market began in 1912 when it established its first factory
in Moga, Punjab. Over the years, the company has expanded its operations significantly and
has become a household name, offering a wide range of products that cater to the diverse
tastes and preferences of Indian consumers.
One of Nestle India's most iconic products is Maggi, which was introduced to Indian
consumers in the 1980s. Maggi instant noodles quickly became a staple in Indian
households, known for their convenience and delicious taste. Over the years, Maggi has
diversified its product offerings, including pasta, soups, and sauces, further solidifying its
position as a beloved brand in India.
Nestle India's commitment to quality, safety, and innovation has been a driving force behind
its success in the Indian market. The company has consistently adapted its products to cater
to the evolving tastes and preferences of consumers. Additionally, Nestle India has
undertaken various initiatives to promote responsible sourcing, environmental sustainability,
and community development.

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FOUNDER OF THE COMPANY: - Ramesh Poddar

Type Public

Traded as  BSE: 500790

 NSE: NESTLEIND
 BSE SENSEX Constituent
 NSE NIFTY 50 Constituent

ISIN INE239A01016

Industry Food processing

Founded 28 March 1959 (64 years ago)

Headquarters Nestle House, Jacaranda Marg, 'M'

Block, DLF City, Phase II,

Gurugram, Haryana

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 India[1]

Area served India

Key people  Suresh Narayanan (CMD)

 David Steven McDaniel (CFO)
 Martin Roemkens (Executive Director)
 Swati Ajay Piramal (Independent Director)
[2]

Products  Maggi
 Nescafé
 Milkmaid
 Cerelac
 KitKat
 Néstea
 Polo
[3]

Revenue ₹15,050
crore (US$1.9 billion)[4] (FY2022)

Operating ₹3,014.11
income crore (US$380 million) [4] (FY2022)

Net income ₹2,137.32

crore (US$270 million) [4] (FY2022)

Total assets ₹7,058.20

crore (US$880 million)[5] (2019)

Total equity ₹1,932.26

crore (US$240 million) [5] (2019)

Number of 7,649 [2]

employees

Parent Nestlé (62.76%) [2][6]

Website nestle.in

4
5
VISION OF THE COMPANY: - To be a global, competing Nutrition, Healthcare,
and Wellness Company producing greater value for shareholders by being a chosen
responsible company, chosen employer, preferred partner, and chosen seller of products/
services,

MISSION OF THE COMPANY: - The mission of Nestle is "Good Food, Good

Life" is to provide consumers with the best tasting, most nutritious choices in a wide range
of food and beverage categories and eating occasions, from morning to night.

BUSINESS OF THE COMPANY: - Nestle SA (Nestle) is a manufacturer and

marketer of food products and beverages. The company's product portfolio comprises baby
foods, bottled water, cereals, chocolates and confectionery, coffee, culinary products, plant-
based foods, chilled and frozen foods, dairy products, nutritional products, ice cream, and
pet care products. Nestle markets its products under the Aero, Purina Alpo, Milkybar,
Nestle Ice Cream, Cerelac, Nescafe, Nespresso, Nido, Perrier, S.Pellegrino, Acqua Panna,
Nestea, Milo, Maggi, Buitoni, Cailler, Movenpick, Purina, Boost, Gerber, and Kit Kat brand
names. The company has business presence in Asia, Oceania, the Americas, Europe, the
Middle East, and Africa. Nestle is headquartered in Vevey, Waadt, Switzerland.

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COMPETITORS OF Nestle INDIA

Nestlé India operates in the fast-moving consumer goods (FMCG) sector

and has several competitors in various product categories. Some of its key
competitors in the Indian market include:
 Hindustan Unilever Limited (HUL)
 Britannia Industries
 ITC Limited
 Parle Products
 Amul
 Coca-Cola India
 Nestlé's Global Competitors
 Local and Regional Competitors

7
Balance Sheet of Nestle India

8
 DEFINE COSTSHEET AND WHY IT IS IMPORTANT OF COMPANY.

A cost sheet is a detailed financial document used by companies to

record and analyze the various costs associated with producing
goods or providing services. It provides a comprehensive
breakdown of all the costs incurred during the production process,
allowing businesses to understand their cost structure.

PRIME COST: Prime cost is defined as total direct cost associated with the
production of a product. Prime cost is direct cost. Prime cost includes cost of raw
material and labor.
Prime cost= Raw material cost+ direct labor cost
Prime cost is used to set product price.
 DIRECT MATERIAL CONSUMED

OPENING STOCK OF RAW MATERIALS

AMOUNT RS 5897.8 LAKHS

Purchase of raw material.

Amount RS. 61541.0 LAKHS

CARRIAGE INWARD
Amount Rs. 110.2 LAKHS

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  CLOSING STOCK OF RAW MATERIAL
Amount Rs 6400.2 lakh

 SALES OF MATERIAL SCRAP

Amount Rs 419.9 lakh

 DIRECT LABOUR

Amount Rs 14284.6 lakh

 DIRECT EXPENSES
Amount Rs 3829.8 lakh

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PARTICULAR AMOUNT (IN
LAKHS)
1.DIRECT COST
DIRECT MATERIAL CONSUMED
OPENING STOCK OF RAW MATERIALS (+) 5897.8
PURCHASES (+) 61541
CARRIAGE INWARD (+) 110.2
CLOSING STOCK OF RAW MATERIAL (-) 6400.2
SALE OF MATERIAL SCRAP (-) 419.9
TOTAL 60728.9
2. DIRECT LABOR ( SALARIES ,WAGES ) 14284.6
3.DIRECT EXPENSES (LICENSE FEES) 3829.8
TOTAL 78843.3
PRIME COST 78843.3

1. WORK COST (FACTORY COST)

Work cost, often referred to as factory cost, is a financial term used in

accounting and cost management to describe the total expenses associated with
the production of goods or services within a manufacturing or production
facility. It represents the cost incurred in transforming raw materials, labor, and
overhead into finished products.

i) FACTORY OVERHEADS
A. INSURANCE
Amount Rs. 110.2

b. Power and Fuel.

Amount Rs 5726.1 lakh

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 c. License fees
Amount 750.1

d. Maintenance and repairs

Amount 1147.1

e. Rates and taxes.

Amount 75.1

2. SALE OF FACTORY SCRAP

Amount Rs 62.6 lakh

1. FACTORY OVERHEAD (+) AMOUNT

IN LAKH
A. INSURANCE 110.2
B. POWER&FUEL 5726.1
C. LIENSE FEES 750.1
D. MAINTANCE & REPAIRS 1147.1
E. RATES & TAXES 75.1
TOTAL 7808.6
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 2. SALE OF FACTORY SCRAP (-) 62.6
TOTAL 7746

3. COST OF PRODUCTION

The cost of production refers to the total expenses incurred by a company or

business in the process of manufacturing or producing goods or providing
services. It encompasses all the costs associated with transforming raw
materials, labor, and overhead into finished products or services ready for sale.

a. DEPRECIATION
Amount Rs4030.1 Lakh

b. STAFF EXPENSES
Amount Rs 937.6 Lakh

c. INSURANCE
Amount Rs 110.2 lakh

3.COST OF PRODUCTION AMOUNT IN

LAKH
A) DEPRECIATION 4030.1
B) STAFF EXPENSES 937.6
C) INSURANCE 110.2
TOTAL 5077.9
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4. COST OF GOOD SALES

The Cost of Goods Sold (COGS), also known as the Cost of Sales or Cost
of Revenue, refers to the direct costs associated with the production or
acquisition of goods that a company sells during a specific period. COGS is
a crucial financial metric used in accounting and financial reporting to
determine the true cost of producing or purchasing the products
that have been sold.

a. OPENING OF FINISHED GOOD

Amount Rs 5961.9 lakh

b. CLOSING OF FINISHED GOOD

Amount Rs 5216.8 lakh

4.COST OF GOOD SALES AMOUNT IN LAKH

OPENING OF FINISHED GOOD(+) 5961.9
CLOSING OF FINISHED GOOD (-) 5216.8

TOTAL 745.1

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 5. COST OF SALES

The term "Cost of Sales" is often used interchangeably with "Cost of Goods Sold
(COGS)" or "Cost of Revenue." It refers to the direct expenses that a company
incurs in the process of producing or purchasing the goods or services that have
been sold during a specific accounting period. Cost of Sales includes all costs
directly associated with the production or acquisition of the products or services,
and it is a crucial component in determining a company's gross profit.

a. ADVERTISEMENT
Amount Rs 6955.9 lakh

b. TRAVELING
Amount Rs 887.5 lakh

c. DISTRIBUTION CHARGES
Amount Rs 7921.4

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 d. Salaries
Amount Rs 483 lakh

e. COST OF PACKING
Amount Rs 13397.1 lakh

5.COST OF SALES AMOUNT IN LAKH

ADVERTISEMENT 6955.9
TRAVELING 887.5
DISTRIBUTION CHARGES 7921.4
SALARIES 14284
COST OF PACKING 13397
TOTAL 43445.8

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COST SHEET OF Nestle India ltd
PARTICULAR AMOUNT (IN AMOUNT IN
LAKH LAKH
1.DIRECT COST
DIRECT MATERIAL CONSUMED
OPENING STOCK OF RAW 5897.8
MATERIALS (+)
PURCHASES (+) 61541
CARRIAGE INWARD (+) 110.2
CLOSING STOCK OF RAW 6400.2
MATERIAL (-) 419.9
SALE OF MATERIAL SCRAP (-)
TOTAL 60728.9
2. DIRECT LABOR ( SALARIES 14284.6
,WAGES )
3.DIRECT EXPENSES (LICENSE 3829.8
FEES)
TOTAL 78843.3
PRIME COST 78843.3
2.FACTORY
OVERHEAD (+)
INSURANCE 110.2
POWER&FUEL 5726.1
LIENCE FEES 750.1
MAINTANCE & REPAIRS 1147.1
RATES& TAXES 75.1
TOTAL 7808.6

SALE OF FACTORY 62.6

SCRAP (-)
TOTAL 7746
FACTORY COST 86589.3
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3.COST OF PRODUCTION
A) DEPRECIATION 4030.1
B) STAFF EXPENSES 937.6
C) INSURANCES 110.2
TOTAL 5077.9
COST OF PRODUCTION 91667.2
TOTAL
4.COST OF GOOD SALES
OPENING OF FINISHED 5961.9
GOOD(+)
CLOSING OF FINISHED 5216.8
GOOD (-)

TOTAL 745.1
TOTAL OF COST OF 92412.3
GOOD SALES
5.COST OF SALES
ADVERTISEMENT 6955.9
TRAVELING 887.5
DISTRIBUTION CHARGES 7921.4
SALARIES 14284
COST OF PACKING 13397
TOTAL 43445.8
TOTAL COST OF SALES 135858.1

PROFIT = SALES – TOTAL COST

= 169979.6 – 135858.1
= 34121.5

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