SUDHIR KUMAR SINGH OM SAI RAM CONTACT NO:8335822148
COST-SHEET
Proforma of Cost Sheet:
Statement of cost Period:
Opening stock of raw materials ***
Add: Purchase of raw materials ***
Add: Expenses on raw materials purchased (Freight, carriage inward) ***
Less: Return of raw materials ***
Less: Abnormal Loss of raw materials ***
Less: Closing stock of raw materials ***
Raw Material consumed ***
Add: Direct wages ***
Add: Direct expenses ***
Add: Productie wages ***
Add: Chargeable expenses ***
Prime Cost ***
Opening work-in-progress
***
Add: Factory or work oierhead
***
Add: Salary to factory manager
***
Add: Depreciaton on plant and machinery
***
Add: Factory electricity
***
Add: Non-productie wages
***
Add: Indirect expenses
***
Less: Closing work-in-progress
***
Less: Sale of scrap ***
Works Cost or Factory Cost ***
Add: Ofce and administratie oierhead
Cost of Producton
Add: Opening stock of fnished goods ***
Less: Closing stock of fnished goods ***
Cost of goods sold ***
Add: Selling and distributon oierhead ***
(Packing expenses, Carriage outward) ***
Total cost of sales
***
Proft (Balancing fgure)
***
Sales
***
Problems on Cost Sheet:
1.From the following partculars, fnd the amount of Prime Cost:
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SUDHIR KUMAR SINGH OM SAI RAM CONTACT NO:8335822148
Opening balance of raw materials Rs.1,40,000; Materials purchased Rs.3,20,000; Freight on raw material
purchased Rs.16,000; Purchase returns Rs.4,800; Closing stock of raw materials Rs.1,80,000; Direct
wages Rs.1,68,000.
2.From the following partculars, fnd the total cost:
Opening stock of raw materials Rs.50,000; Purchases of raw materials Rs.1,50,000; Productie wages
Rs.25,000; Works oierhead Rs.30,000; Ofce expenses Rs.18,000; Closing stock of materials Rs.30,000.
3.Show the total cost and cost per unit for the following data:
Raw material consumed Rs.40,000; Works expenses Rs.10,000; Administraton cost 10% of works cost;
Selling oierhead Rs.3 per unit; Units produced and sold 5,000 units; Selling price per unit Rs.20.
4.From the following partculars prepare a cost sheet showing the proft or loss for the year ended 31 st
December, 2008 :
1.1.2008 31.12.2008
Rs. Rs.
Stock of raw materials 12,550 10,910
Work-in-progress 6,600 7,200
Finished stock 13,660 14,500
Other data for the year are: Rs. Rs.
Purchases of raw materials 2,25,500 Factory oierhead 87,600
Productie wages 1,12,000 Chargeable expenses 15,200
Selling oierhead 40,000 Ofce and administratie
Sales 5,92,250 oierhead 34,500
5. From the following partculars prepare a cost sheet showing cost of sales and proft:
Rs. Rs.
Opening stock: Purchases of raw materials 30,000
Raw materials 25,000 Direct wages 17,000
Work-in-progress 8,000 Works expenses 8,800
Finished goods 17,000 Ofce expenses 3,000
Closing stock: Selling & distributon expenses 4,000
Raw materials 26,000 Sales of fnished goods 77,000
Work-in-progress 9,000 Depreciaton of plant and
Finished goods 16,000 machinery 8,000
Sale of scrap 3,000
6. From the following partculars prepare a cost sheet for the month of January,2009:
Rs. Rs.
Stock on 1.1.09 Carriage on purchases 600
Raw materials 1,200 Sale of fnished goods 60,000
Work-in-progress 3,100 Direct wages 15,300
Finished goods 6,700 Non-productie wages 300
Stock on 31.1.09 Chargeable expenses 700
Raw materials 1,500 Factory oierhead 33 1/3% of wages
Work-in-progress 4,000 Ofce oierhead 2,700
Finished goods 3,800 Selling oierhead 2,800
Raw materials purchased 20,800
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SUDHIR KUMAR SINGH OM SAI RAM CONTACT NO:8335822148
7. Following data are extracted from the books Q Ltd. For the month of December,2010:
Rs.
Stock of raw materials (1.12.10) 80,000
Stock of fnished goods (1.12.10) 1,20,000
Purchases of raw materials 2,00,000
Direct wages paid 1,00,000
Direct expenses paid 20,000
Factory oierhead incurred 80,000
Ofce oierhead incurred (20% of works cost) ?
Selling oierhead (Rs 1.50 per unit sold) ?
Stock of raw materials (31.12.10) 30,000
Stock of fnished goods (31.12.10) 1,60,000
Sales (50,000 units) 6,50,000
Prepare a cost sheet.
8. Following data are extracted from the books of T Ltd. for the month of January,2009:
Rs.
Stock of raw materials (1.1.09) 1,10,000
Stock of fnished goods (1.1.09) 2,00,000
Purchase of raw materials 3,50,000
Direct wages 1,30,000
Direct expenses 20,000
Producton oierhead 90,000
Ofce oierhead 50,000
Selling oierhead (Re. 1 per unit sold) ?
Distributon oierhead 15,000
Stock of fnished goods (31.1.09) 60,000
Stock of raw materials (31.1.09) 2,25,000
Sale (40,000 units @ Rs. 20 each) ?
Prepare a cost sheet.
9. From the following partculars relatng to producton and sales for the year ended 31 st December,
2008, prepare Statement of Producton Cost and Cost of Goods Sold showing inter alia the Prime cost
and the cost per unit:
Rs. Rs.
Raw materials as on 1.1.08 25,000 Selling expenses 54,000
Work-in-progress as on 1.1.08 36,000 Distributon expenses 36,000
Finished goods as on 1.1.08 1,44,000 Sale proceeds of fnished good 9,00,000
(8,000units) (30,000units)
Raw materials purchased 2,00,000 Raw materials as on 31.12.08 45,000
Factory wages 2,70,000 Work-in-progress on 31.12.08 54,000
Factory expenses 1,44,000 Finished goods as on 31.12.08
Administratie expenses 90,000 (10,000 units) at cost
10. From the following partculars, ascertain the cost of producton:
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SUDHIR KUMAR SINGH OM SAI RAM CONTACT NO:8335822148
Rs.
Stock of raw materials on 1.4.08 30,000
Raw materials purchased 2,10,000
Freight on raw materials purchased 10,000
Stock of raw materials on 31.3.09 20,000
Direct wages 1,20,000
Direct expenses 25,000
Indirect wages 5,000
Factory rent 24,000
Salaries to ofce stat 16,000
Ofce expenses 8,000
11. From the following partculars relatng to producton and sales for the year ended 31 st
December,2008 prepare a Statement of cost showing inter alia, Prime cost, Factory Cost, Cost of
Producton, Cost of goods Sold and Total as well as per Unit Cost of Sales and Proft:
As on 1.1.08 As on 31.12.08
Rs. Rs.
Raw materials 16,000 19,600
Work-in-progress 12,600 4,600
Finished goods (at cost) 16,400 ?
(3,000 units) (2,500 units)
Other informaton for the year:
Purchases of raw materials Rs. 1,11,600
Sale of fnished goods (40,500 units) Rs. 2,83,500
Productie wages Rs. 67,200
Ofce expenses Rs.45,000
Selling expenses 50 paise per unit sold
Machine hour worked 8,000 hours
Machine hour rate Rs. 2.50
Assume that sales are made on the basis of First-in First-out principle.
[Hints: Works oierhead= 8,000 hours X Rs. 2.50= Rs. 20,000]
12. The following data relate to the manufacture of a standard product during the four week period to
June 30th,2008:
Raw materials consumed Rs. 4,000
Wages Rs. 6,000
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SUDHIR KUMAR SINGH OM SAI RAM CONTACT NO:8335822148
Machine hours worked 1,000
Machine hour rate 50 paise
Ofce hour rate 20% on works cost
Selling oierhead 6 paise per unit
Units produced 20,000
Units sold 18,000 @ Re. 1 per unit
You are required to prepare a Cost Sheet showing the Cost per Unit and proft for the period.
13. The following fgures for the month of April, 2009 were extracted from the records of a factory:
Opening stock of fnished goods (5,000 units) Rs. 45,000
Purchases of raw materials Rs. 2,57,100
Direct wages Rs. 1,05,000
Factory oierhead 10% of direct wages
Administratie oierhead Re. 1 per unit
Selling and distributon oierhead 10% of sales
Closing stock of fnished goods (10,000 units) ?
Sales (45,000 units) Rs. 6,60,000
Prepare a Cost Sheet for the month of April, 2009, assuming that sales are made on the basis of FIFO
principle.
14. A manufacturing company submits the following informaton on 31 st March, 2009:
Rs.
Sales for the year 3,00,000
Inientories at the beginning of the year:
Materials 5,000
Work-in-progress 4,000
Finished goods 9,000
Purchases of raw materials for the year 1,60,000
Direct labour 45,000
Inientories at the end of the year:
Materials 3,000
Work-in-progress 5,000
Finished goods 6,000
Other expenses for the year:
Selling expenses @ 10% of sales
Factory oierhead @ 50% of direct labour cost
Administratie expenses @ 10% of works cost. Prepare Statement of Cost.
15. From the undernoted partculars determine the (i) Works cost, (ii) Total cost; and (iii) sale price per
unit:
Rs.
Total no. of units produced--- 2,000
Raw material consumed 1,40,000
Wages 60,000
Power and fuel 15,000
Carriage inward 4,000
Packing expenses 4,000
Salary paid to producton stat 25,000
Depreciaton on plant and machinery 3,000
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SUDHIR KUMAR SINGH OM SAI RAM CONTACT NO:8335822148
Ofce expenses 10,000
Proft in sale will be 15% of the sale price.
16. Compute cost of Raw materials purchased from the data giien below:
Rs.
Opening cost of Raw materials 10,000
Closing stock of Raw materials 15,000
Expenses on purchases 5,000
Direct wages 50,000
Prime cost 1,00,000
17. From the following informaton, compute the Raw material purchased:
Rs.
Opening cost of Raw materials 20,000
Closing stock of Raw materials 30,000
Direct wages 2,10,000
Factory oierhead 60% of Direct Wages
General oierhead 10% of works cost
Cost of producton 6,88,600
18. From the following partculars relatng to producton and sales for the year ended 31 st, December,
2001, prepare statements of producton cost and of cost of goods sold. Showing inter alia the prime cost
and the cost per unit. Also prepare the costng proft and loss account.
Rs.
Raw materials as on 1.1.01 25,000
Work in progress as on 1.1.01 36,000
Finished goods as on 1.1.01 (8,000 units) 2 1,44,000 (at cost)
Raw material purchased 2,00,000.
Factory wages 2,70,000
Factory expenses 1,44,000
Administraton expenses 90,000
Selling expenses 54,000
Distributon expenses 36,000
Sale proceeds of fnished goods (30,000 units) 9,00,000
Raw materials as on 31.12.01 45,000
Work-in-progress as on 31.12.01 54,000
Finished goods as on 31.12.01 (10,000 units) at cost
19. Mr. Mohanta furnishes the following data relatng to the manufacture of a standard product during
the month of April, 2002:
Raw material consumed Rs. 15,000
Direct labour charges Rs. 9,000
Machine hours worked 900
Machine hour rate Rs.5
Administratie oierheads 20% on works cost
Selling oierheads 0.50 per unit
Units produced 17,100
Units sold 16,000 units @ Rs. 4 per unit
You are required to prepare a cost sheet from the aboie, showing:
(a) Cost per unit:
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SUDHIR KUMAR SINGH OM SAI RAM CONTACT NO:8335822148
(b) Proft per unit sold and total proft for the period.
20.From the following informaton prepare a statement of cost for the year 2011 showing therein
(a)Prime Cost, (b)Works Cost, (c)Cost of Producton and (d)Total Cost:
Rs.
Opening Stock of: Raw Materials 18,000
Finished Goods 5,000
Closing Stock of: Raw Materials 10,000
Finished Goods 6,000
Purchase of Raw Materials 90,000
Indirect Wages (Factory) 3,000
Factory Superiision 2,000
Direct Wages 18,000
Power & Fuel 5,000
Depreciaton of Plant & Machinery 7,000
Carriage Outward 3,000
Ofce Salaries 8,000
Ofce Rent 6,000
Sundry Ofce Expenses 9,000
Salesman’s Salaries 3,000
21.From the following informaton prepare a statement of cost for the year 2011 showing therein
(a)Prime Cost, (b)Works Cost, (c)Cost of Producton and (d)Total Cost:
Rs.
Raw Materials Consumed 60,000
Direct Wages 40,0002222
Direct Expenses 8,000
Indirect Wages 10,000
Depreciaton on Machinery 12,000
Ofce Oierhead 20% on Works Cost
Selling Oierhead Rs.2 per unit
Units Produced 15,000
Units Sold 12,000 @ Rs.15 each
22.From the following partculars prepare a Cost Sheet showing major elements of Cost and Proft:
Opening Stock (Rs.) Closing Stock (Rs.)
Raw Materials 15,000 15,600
Finished Goods 10,200 9,600
Work-in-Progress 4,800 5,400
Purchases of Raw Materials 18,000
Direct Wages 5,280
Works Expenses 1,800
Ofce Expenses 2,400
Selling Expenses 4,800
Depreciaton on Plant & Machinery 1,800
Rate of Proft 20% on Sales
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SUDHIR KUMAR SINGH OM SAI RAM CONTACT NO:8335822148
23.On the basis of the informaton giien below in respect of producton of a certain product, Prepare a
statement of cost and fnd out its selling price:
Rs.
Direct Materials 5,000
Direct Wages 3,000
Chargeable Expenses 1,000
Works on cost at 30% of direct wages; ofce on cost at 12% of works cost; Proft at 20% of selling
price is required.
24.Find raw material purchased from the following informaton:
Opening stock of raw materials Rs.40,000
Closing stock of raw materials Rs.60,000
Direct wages Rs.30,000
Work expenses Rs.20,000
Works cost Rs.80,000
25.A factory produces a single product. From the following partculars for the month of March 2013,
prepare a cost sheet:
01.03.2013 (Rs.) 31.03.2013 (Rs.)
Stock of raw materials 50,000 65,000
Stock of Work-in progress 45,000 82,000
Stock of fnished goods 96,000 ?
(3,000 units) (2,000 units)
Other informaton for the month: Rs.
Raw material purchased 3,00,000
Freight on purchase of raw materials 10,000
Direct wages paid 1,80,000
Chargeable expenses 25,000
Factory oierhead 1,80,000
Ofce & Administratie expenses 77,000
Selling and Distributon expenses 34,000
Producton …………… 24,000 Units
Sales @ Rs.35 per unit ?
20. From the following fgures prepare separate statements of cost and proft for the month of October,
2011:
Rs. Rs.
st
Stock on 1 October,2001; Purchase of Raw materials 2,85,700
Raw materials 60,600 Sale of fnished goods 13,40,00
Finished goods 35,900 Direct wages 0
Stock on 31st October, 2001: Factory expenses 3,75,000
Raw materials 75,000 Ofce and administraton expenses 2,12,500
Finished goods 30,900 Selling and distributon expenses 1,03,400
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SUDHIR KUMAR SINGH OM SAI RAM CONTACT NO:8335822148
Work-in-progress: Sale of scrap 75,000
On 1st October,2001 1,25,60 2,600
On 31st October, 2001 0
1,42,20
0
21.The following fgure were extracted from the records of a factory for the year ended 31.3.2005:
Stock on 1.4.2004: Rent, Rates and insurance of works 9,000
Raw materials 4,000 Carriage inwards 400
Work in progress 1,200 Dock changes 1,000
Finished products 3,000 Cost of rectfying raw materials 2,000
Stock on 31.03.2005: Hire of special tools for manufacturing
Raw materials 5,000 Cost of factory superiision 10,000
Work in progress 3,000 Wages paid to works gateman 1,100
Finished products 8,000 Sales of fnished products 2,000
Raw material purchased 40,000 Selling and distributons oierheads—1% 1,50,00
Direct wages 20,000 of sales 0
You are required to prepare a cost sheet from the aboie partculars.
22. Prepare a cost sheet from the following data to fnd out the proft and cost per unit during the
month of January 2005:
Rs. Per unit
Raw material consumed 2,00,00 Selling oierheads Rs. 5
Direct wages 0 Units produced 4,000
Factory oierheads 80,000 Units sold 3,600
Directs cost ofce oierheads—10% on 20,000 Selling price per unit Rs. 120
factory cost 50,000
23. The following are the fgures relatng to the producton of a commodity for the month of March ,
2005:
Partculars Rs. Partculars Rs.
Stock on 1.3.2005—Raw materials 75,000 Works oierheads 2,000
Stock on 1.3.2005—Finished goods 75,000 Ofce and administratie oierheads 3,000
Work-in-progress on 1.3.2005 5,000 Selling expenses 2,000
Work-in-progress on 31.3.2005 3,000 Sales 1,77,00
Stock on 31.3.2005—Raw materials 50,000 Purchase of raw materials 0
Stock on 31.3.2005—Finished goods 53,000 Direct wages 1,00,00
0
5,000
Prepare a statement showing prime cost, Total cost and Net proft for the month.
24.The following extract of informaton relates to a commodity for the year ended 31 st March, 2005,
Prepare Cost Sheet:
Rs.
Stock on 1.4.2004 Raw material purchased 30,000
Raw materials 5,000 Direct wages 25,000
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SUDHIR KUMAR SINGH OM SAI RAM CONTACT NO:8335822148
Finished products (1,000 tonnes) 4,000 Rent, rates and insurance of works 10,000
Work-in-progress 1,200 Carriage inwards 360
Stock on 31.3.2005 Cost of factory superiision 2,000
Raw materials 5,560 Sales of fnished products 75,000
Finished products (2,000 tonnes) 8,000
Work-in-progress 4,000 Adiertsement and selling oierhead
amount to 25 paise per tonne
sold,16,000 tonnes were produced
during the year
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