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  • UM22060

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    saksham baveja
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    1) The document provides a cost sheet for 3 customers - Z ltd, NGO, and Retailer. It shows the prime cost, manufacturing overhead, and total cost for each customer. 2) Non-manufacturing overhead costs like vehicle rent, courier cost, and after-sales service are allocated solely to Z ltd as they were incurred for that customer. Salesman salaries are allocated to NGO and Retailer based on units sold. 3) The total cost, profit, sales and return on sales are calculated for each customer. Z ltd has the highest return on sales at 20.88% while NGO has the lowest at 11.32%.

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    UM22060 (1)

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    1) The document provides a cost sheet for 3 customers - Z ltd, NGO, and Retailer. It shows the prime cost, manufacturing overhead, and total cost for each customer. 2) Non-manufacturing overhead costs like vehicle rent, courier cost, and after-sales service are allocated solely to Z ltd as they were incurred for that customer. Salesman salaries are allocated to NGO and Retailer based on units sold. 3) The total cost, profit, sales and return on sales are calculated for each customer. Z ltd has the highest return on sales at 20.88% while NGO has the lowest at 11.32%.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    5 views4 pages

    UM22060

    Uploaded by

    saksham baveja
    1) The document provides a cost sheet for 3 customers - Z ltd, NGO, and Retailer. It shows the prime cost, manufacturing overhead, and total cost for each customer. 2) Non-manufacturing overhead costs like vehicle rent, courier cost, and after-sales service are allocated solely to Z ltd as they were incurred for that customer. Salesman salaries are allocated to NGO and Retailer based on units sold. 3) The total cost, profit, sales and return on sales are calculated for each customer. Z ltd has the highest return on sales at 20.88% while NGO has the lowest at 11.32%.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 4

    Q1 Q2 Customer Wise Cost Sheet

    Cost Sheet
    DM 300000
    DL 150000 Prime Cost
    DE 113000 Add
    Prime Cost 563000 Manu OH
    Man. OH Product Cost
    Quality Insp exp 50000 Add
    Factory Supervision Charges 60000 Non Man OH
    Technical Advisor's 225000 Total Cost
    Factory Insurance 25000 Profit
    Electricity 25000 Sales
    Depreciation 13333 ROS
    398333
    Product Cost 961333
    Non Man. OH Assumptions
    Vehicle Rent 80000 1. Man OH are absorbed on the
    Courier Cost 10000 2. Non Man OH are absorbed on
    After sales service cost 150000
    Salesman's Salary 120000
    360000
    Total Cost 1321333
    Profit 260667
    Total Sales 1582000

    Return on sales 16.48%

    Direct Expenses
    Royalty 50000
    Freight Charges 18000
    Heating and fuel cost 45000
    113000

    Assumptions
    1 Heating and fuel cost is required for manufacturing the final product and has been added to direct expenses.
    2 Technical advisors' services have been used in the manufacturing facility for the manufactuing of the product.
    3 Electricity expense completely belongs to factory.
    4 Vehicle has been used for delivering the goods
    5 Quality Insprection was mandatory for manufacturing the product.
    omer Wise Cost Sheet

    Z ltd NGO Retailer Total Sales Details


    281500 112600 168900 563000 Customer Units Price Value
    Z ltd 5000 167 835000
    199166.5 79666.6 119499.9 398333 B (NGO) 2000 150 300000
    480666.5 192266.6 288399.9 961333 C (retailer) 3000 149 447000
    10000 1582000
    180000 72000 108000 360000 Prime Cost per unit 56.3
    660666.5 264266.6 396399.9 1321333
    174333.5 35733.4 50600.1 260667 Man OH 398333
    835000 300000 447000 1582000 Man OH AbR 39.8333
    20.88% 11.91% 11.32% 16.48%
    Non Man OH 360000
    Non Man OH AbR 36

    an OH are absorbed on the basis of units sold.


    on Man OH are absorbed on the basis of units sold.

    d to direct expenses.
    ctuing of the product.
    Q3 Customer Wise Cost Sheet

    Z ltd NGO Retailer


    Units 5000 2000 3000
    Prime Cost 281500 112600 168900
    Add
    Manu OH
    Factory Supervision Charges 30000 12000 18000
    Factory Insurance 12500 5000 7500
    Electricity 12500 5000 7500
    Depreciation 6666.5 2666.6 3999.9
    61666.5 24666.6 36999.9
    Product Cost 343166.5 137266.6 205899.9
    Technical Advisor's 225000
    Quality Insp exp 50000
    Vehicle Rent 80000
    Courier Cost 10000
    After sales service cost 150000
    Salesman's Salary 48000 72000
    455000 108000 72000
    Total Cost 798167 245267 277900
    Profit 36834 54733 169100
    Sales 835000 300000 447000
    ROS 4.41% 18.24% 37.83%
    Assumptions
    1. Technical Advisor employed for Z ltd was employed with the purpose of providing more inf
    2. Quality Inspection has nothing to do with manufacturing the product.
    3. Man OH are absorbed on the basis of units sold
    4. Technical Advisor was for Z ltd
    5. Vehicle was used to send goods to Z ltd
    6. After sales service cost exclusively of Z ltd
    7. Salesman's service to be distributed between NGO and retailers on the basis of units
    Total
    10000 Total Units sold 10000
    563000
    Manu OH Abr
    Factory Supervision Charges 60000 6
    60000 Factory Insurance 25000 2.5
    25000 Electricity 25000 2.5
    25000 Depreciation 13333 1.3333
    13333
    123333 Abr
    686333 Salesman Services 120000 24
    225000
    50000
    80000
    10000
    150000
    120000
    635000
    1321333
    260667
    1582000
    16.48%

    ith the purpose of providing more information and increasing sales to Z ltd.
    ng the product.

    d retailers on the basis of units

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