PRM-41
ASSIGNMENT NO-1
M/s Central Agro Processing Limited manufactures a product named "KETCHUP". Following cost details
are provided to find out the cost of sale of the product based on the cost data of the previous month.
The organisation issues raw material on weighted average method.
Finished production - kg 16,111
Sl. No. Cost Quantity-Kg/No
1 Basic raw material purchase - kg 15,000
2 Packing material (cartons) purchase -Nos. 500
3 Other material consumption
4 Indirect labour cost
5 Office printing and stationery
6 Sales manager's travelling cost
7 Bad debts
8 Office expenses
9 Depreciation on plant and machinery
10 Depreciation on office furniture
11 Depreciation on fire extinguishers
12 Legal fees
13 Auditors fees
14 Conveyance expenses
15 Repairs to factory building
16 Repairs to finished goods godown
17 Donation to a charitable trust
18 Direct labour cost
19 Insurance premium on work in progress
20 Insurance premium on raw material
21 Insurance premium on finished goods
22 Insurance premium on plant and machinery
23 Miscellaneous factory expenses
24 Salary to production staff
25 Salary to administration staff
26 Salary to sales and distribution staff
27 Direct expenses
28 Sales depot office expenses
29 Sales staff telephone cost
30 Sales commission
31 Freight outward for goods to depot
Advertisement expenses for promotion of the
32 product
Total
Opening Inventory Quantity
1 Raw material - kg 3,000
2 Packing material (cartons) Nos. 500
3 Work in progress - kg 1,500
4 Finished goods - kg 1,200
Closing Inventory
1 Raw material - kg 500
2 Packing material (cartons) Nos. 800
3 Work in progress - kg 1,200
4 Finished goods - kg 400
Production manager reported the following:
3% of raw
1 There was a process loss which was found to be material
within limits
consumption
One lot of raw material was given on loan to the
2 neighbouting unit for one month which was not 1,200
received back by the end of previous month. - Kg
3 Sales - Kg 16,911
4 Sales price - Rs/kg 125
Standard consumption of raw material per kg of
5 1.0500
production
Required
1 Material balancing
2 Effective production
3 Factory cost of finished production
4 Cost of production per unit of goods produced
5 Cost of sale per unit of quantity sold
6 Total value of clo inventory
7 Costing Profit/Loss on the product
8 Actual consumption of raw material per kg of effective production
Variance of actual consumption per kg of effective production with that of standard
9
consumption
10 Cost (Amount-Rs.) saved/ lost due to less/excess consumption respectively
TCHUP". Following cost details
data of the previous month.
Amount-Rs.
600,000
50,000
20,000
10,000
6,000
24,000
5,000
8,000
7,000
3,000
2,000
12,000
40,000
10,000
3,000
2,000
11,000
200,000
1,500
1,200
2,300
6,000
17,000
150,000
120,000
180,000
30,000
4,000
15,000
60,000
24,000
176,000
1,800,000
Value-Rs.
114,000
45,000
105,000
86,400
?
?
?
?
with that of standard
respectively
Material Balancing for October 2021
Particulars (Raw Material) Qty
Raw material purchased 15,000
Add: Opening Stock 3,000
Total Qty for Consumption 18,000
Less: Closing Balance (500)
Less: Due to the non recieval of
(1,200)
material given on loan
Raw Material issued for Production 16,300
Particulars (WIP) Qty
Material received from the store 16,300
Add: Opening Stock 1,500
Total Qty available for processing
17,800
into Finished Production
Less: Closing Balance (1,200)
Less: Loss of material (489)
Available for Finished production 16,111
Particulars (Finished Product) Qty
Available for Finished Production 16,111
Add: Opening Stock 1,200
Total Qty for Sale 17,311
Less: Closing Balance (400)
Sales 16,911
Particulars (Packaging Material) Qty
Purchase of Packing Material (Cartons) 500
Add: Opening Stock 500
Total Qty available for Consumption 1,000
Less: Closing Balance (800)
Packing material for Consumption 200
Effective Production for October 2021
Particulars (Raw Material) Qty
Finished Produtcion 16,111
Add: Closing Stock of WIP 1,200
Total Qty for Consumption 17,311
Less: Opening Balance of WIP (1,500)
Effective Production 15,811
Cost sheet preparation of M/s Central Agro Processing Limited's Ketchup for the
Particulars Qty (in Kg.)
Finished Production 16,111
Effective Production 15,811
Sales 16,911
Particulars Qty Rate
Opening Balance of Principal Raw material 3,000 ₹ 38.00
Add: Purchase 15,000 ₹ 40.00
Total Qty available for Consumption 18,000 ₹ 39.67
Less: Closing Balance (500) ₹ 39.67
Raw Material for Consumption 17,500 ₹ 39.67
Purchase of Packing Material (Cartons) 500 ₹ 100.00
Add: Opening Stock 500 ₹ 90.00
Total Qty available for Consumption of Packing Material 1,000 ₹ 95.00
Less: Closing Balance (800) ₹ 95.00
Packing material for Consumption 200 ₹ 100.00
Other material consumption
Direct labour cost
Direct expenses
Prime Cost
Indirect labour cost
Depreciation on plant and machinery
Repairs to factory building
Insurance premium on work in progress
Insurance premium on raw material
Insurance premium on finished goods
Insurance premium on plant and machinery
Miscellaneous factory expenses
Salary to production staff
Factory Overheads
Current period Factory Cost
Material received from the store 16,300 ₹ 73.50
Add: Opening Stock 1,500 ₹ 70.00
Total Qty available for processing into Finished Production 17,800 ₹ 73.21
Less: Closing Balance (1,200) ₹ 73.21
Less: Loss of material (489) ₹ 73.21
Factory Cost of Finished Goods 16,111 ₹ 73.21
Office printing and stationery
Office expenses
Depreciation on office furniture
Depreciation on fire extinguishers
Repairs to finished goods godown
Legal fees
Auditors fees
Salary to administration staff
Administration Expenses
Cost of Production of Qty Produced
Available for Finished Production 16,111 ₹ 85.19
Add: Opening Stock 1,200 ₹ 72.00
Total Qty for Sale 17,311 ₹ 84.27
Less: Closing Balance (400) ₹ 84.27
Cost of Production for Qty sold 16,911 ₹ 84.27
Sales manager's travelling cost
Salary to sales and distribution staff
Sales depot office expenses
Sales staff telephone cost
Conveyance expenses
Sales commission
Freight outward for goods to depot
Advertisement expenses for promotion of the product
Sales & Distribution Expenses
Cost of Production of Qty Sold
Sales Realization
Margin/Costing Profit
ng Limited's Ketchup for the month of October 2021
Cost - Rs./Unit of Cost - Rs./Unit of
Cost (in Rs.)
Finished Production Effective Production
₹ 114,000
₹ 600,000
₹ 714,000
₹ 19,833
₹ 694,167 ₹ 43.90
₹ 50,000 ₹ 3.16
₹ 45,000 ₹ 2.85
₹ 95,000 ₹ 6.01
₹ 75,000 ₹ 4.74
₹ 20,000 ₹ 1.26
₹ 20,000 ₹ 1.26
₹ 200,000 ₹ 12.65
₹ 30,000 ₹ 1.90
₹ 964,167 ₹ 60.98
₹ 10,000 ₹ 0.63
₹ 7,000 ₹ 0.44
₹ 3,000 ₹ 0.19
₹ 1,500 ₹ 0.09
₹ 1,200 ₹ 0.08
₹ 2,300 ₹ 0.15
₹ 6,000 ₹ 0.38
₹ 17,000 ₹ 1.08
₹ 150,000 ₹ 9.49
₹ 198,000 ₹ 12.52
₹ 1,162,167 ₹ 73.50
₹ 1,198,110 ₹ 75.78
₹ 105,000 ₹ 6.64
₹ 1,303,110 ₹ 82.42
₹ 87,850.11 ₹ 5.56
₹ 35,798.92 ₹ 2.26
₹ 1,179,460.94 ₹ 73.21 ₹ 74.60
₹ 6,000 ₹ 0.37
₹ 8,000 ₹ 0.50
₹ 3,000 ₹ 0.19
₹ 2,000 ₹ 0.12
₹ 2,000 ₹ 0.12
₹ 12,000 ₹ 0.74
₹ 40,000 ₹ 2.48
₹ 120,000 ₹ 7.45
₹ 193,000 ₹ 11.98
₹ 1,372,460.94 ₹ 85.19
₹ 1,372,460.94
₹ 86,400.00
₹ 1,458,860.94
₹ 33,709.45
₹ 1,425,151.48 ₹ 84.27
₹ 24,000 ₹ 1.42
₹ 180,000 ₹ 10.64
₹ 4,000 ₹ 0.24
₹ 15,000 ₹ 0.89
₹ 10,000 ₹ 0.59
₹ 60,000 ₹ 3.55
₹ 24,000 ₹ 1.42
₹ 176,000 ₹ 10.41
₹ 493,000 ₹ 29.15
₹ 1,918,151.48 ₹ 113.43
₹ 2,113,875 ₹ 125.00
₹ 195,723.52 ₹ 11.57
Value of the Stock at the end of October 2021
Particulars Qty (in Kg.) Value (in Rs.)
Raw Material 500 ₹ 19,833
Work in Progrees (WIP) 1,200 ₹ 87,850
Finished Products 400 ₹ 33,709
Packaging materials 800 ₹ 75,000
Total Value of the Inventory ₹ 216,393
Cost Control of Ketup for the Month October 2021
Particulars Value Units
Standard Consumption of Principal Raw Material 1.05 per Kg. of Production
Actual Consumption of Principal Raw Material 1.03 per Kg. of Production
Consumption of Raw Material Saving 0.02 per Kg. of Production
Total Consumption of Raw Material Savings 301.55 Kg.
Average rate of Material ₹ 39.67 Rs./Kg.
Cost of Excess Consumption ₹ 11,961.48 Rs.
