Unit I: Cost Sheet

Simple cost sheet ( 8 or 7 marks)

1. The following extract of costing information relates to a Commodity for year ending
31stDec, 2017:
Particulars Rs.
Purchase of raw materials 30,000
Direct wages 25,000
Rent , rates and taxes 10,000
Carriage Inwards 1,200
Opening Stock:
Raw materials 5,000
Work in progress 1,200
Finished goods 4,000
Closing stock:
Raw materials 5560
Work in progress 4,000
Finished goods(3,000 units) 8000
Cost of factory supervision 2,400
Sales 75,000
selling expenses amount to 35 paise per tonne sold. 17,000 tonnes of the commodity were produced
during the Period.From the above information prepare cost statement Showing per tonne cost.

2. The following extract of costing information relates to a Commodity for year ending 31st
March, 2017:
Particulars Rs.
Purchases 60,000
Wages 50,000
Rent 20,000
Carriage 2,400

Opening Stock:
Raw materials 10,000
Work in progress 2,400
Finished goods 8,000
Closing stock:
Raw materials 11,120
Work in progress 8,000
Finished goods(3,000 units) 16,000
Cost of factory supervision 4,800
Sales 1,50,000
selling expenses amount to 70 paise per tonne sold. 34,000 tonnes of the commodity
wereproduced during the Period.From the above information prepare cost statement Showing
per tonne cost.

3. The following information relates to a Commodity for year ending 31st Dec,2017:
Particulars Rs.
Raw material consumed 90,000
Direct wages 75,000
Rent , rates and taxes 30,000
Carriage Inwards 3,600
Opening Stock:
Raw materials 15,000
Work in progress 3,600
Finished goods 12,000
 Closing stock:
Raw materials 16,620
Work in progress 12,000
Finished goods(2,000 units) 24000
Cost of factory supervision 7,200
Sales 2,25,000
Advertising expenses amount to 35 paise per tonne sold.18,000 tonnes of the
commodity were produced during the Period.From the above information prepare cost
statement showing per tonne cost.

11. From the following information, prepare cost sheet:

Particulars Rs.
Opening stock of materials 61,700
Opening stock of WIP 1,21,700
Purchases of raw materials 2,86,500
Direct Wages 3,57,000
Factory Overheads 1,99,500
Selling Overheads 70,000
Administrative Overheads 1,10,000
Sales 12,50,000
Closing Stock: Raw materials 75,400
WIP 1,35,600
Sale of Scrap 1,350
Carriage Inwards 5,950

12. From the following information, prepare a Cost sheet:

Particulars Rs.
Opening Stock of Raw Material 1,20,000
Opening Stock of Finished Goods 2,40,000
Purchase of Raw Materials 6,80,000
Wages 3,00,000
Carriage Inwards 40,000
Closing Stock of Finished Goods 60,000
Factory Expenses 2,32,000
Office Expenses 1,80,000
Closing Stock of Raw Materials 1,80,000

13. From the following information, prepare a Cost sheet:

Particulars Rs.
Opening Stock of Raw Material 60,000
Opening Stock of Finished Goods 1,20,000
Purchase of Raw Materials 3,40,000
Wages 1,50,000
Carriage Inwards 20,000
Closing Stock of Finished Goods 30,000
Factory Expenses 1,16,000
Office Expenses 94,000
Closing Stock of Raw Materials 90,000
Estimated Cost Sheet (15 marks)

1. Rajesh Ltd.manufactures TV sets . For the year ending 31st Dec 2017, expenses incurred are
as follows for an output of 4,000 units.
Particulars Rs.
Raw materials consumed 16,00,000
Direct wages 8,00,000
Factory Overheads 15,68,000
Administrative overheads 3,68,000
Selling overheads 5,60,800
Sales 56,16,000
For the year 2018, the following changes were estimated:
a. Raw materials price would rise by 10% .
b. Direct wages would rise by 20 %.
c. The factory overheads would be in the same proportion to prime cost as in 2017.
d. Administrative overheads would rise by 10%.
e. Selling overheads per unit would remain the same.
f. The output and sales would be 5,000 Fans.
g. Expected profit in the year 2018 is 10% of sales.
From the above information, prepare:
i) Cost sheet of the year 2017 and Estimated Cost sheet of the year 2018 showing per
unit and total cost.
ii) Working notes for the Estimated cost sheet.
iii) Estimated Sales price.

2. Mahesh Ltd.manufactures Tape recorders. For the year ending 31st Dec 2017, expenses
incurred are as follows for an output of 1,000 units.
Particulars Rs.
Raw materials consumed 12,00,000
Direct wages 6,00,000
Factory Overheads 10,92,000
Administrative overheads 2,92,000
Selling overheads 4,21,200
Sales 42,12,000
For the year 2018, the following changes were estimated:
a. Raw materials price would decrease by 20% .
b. Direct wages would rise by 5%.
c. The factory overheads would be in the same proportion to raw materials and direct wages
as in 2017.
d. Administrative overheads would rise by 5%.
e. Selling overheads per unit would remain the same.
f. The output and sales would be 3,000 tape recorders.
g. Expected profit in the year 2018 is 25% of sales.
From the above information, prepare:
Cost sheet of the year 2017 and Estimated Cost sheet of the year 2018 showing per unit and
total cost.
Material Costing (8 or 7 marks)

1. The following information is provided by S Ltd. for the month of April’2014:

Particulars Units
Opening Stock 100 @ Rs. 5 per unit
Purchases:
05.04.2014 300 @ Rs. 6
08.04.2014 500 @ Rs. 7
12.04.2014 600 @Rs. 8
Sales:
06.04.2014 250
10.04.2014 400
14.04.2014 500
Calculate the closing stock by using FIFO method and Weighted Average method.

2. The following information is provided by Sarita Ltd. for the month of January’2015:
Particulars Units
Opening Stock 400 @ Rs. 10 per unit
Purchases:
05.04.2014 1,200 @ Rs. 12
08.04.2014 2,000 @ Rs. 14
12.04.2014 2,400 @Rs. 16
Sales:
06.04.2014 1,000
10.04.2014 1,600
14.04.2014 2,000
Calculate the closing stock by using Weighted Average method and FIFO method.

3. From the following data, calculate the value of closing inventory according to weighted
average method and FIFO method on March 31, 2014.

March 1 Stock in hand 400 units @ Rs. 7.50 each

Purchases :
March 5 600 units @ Rs. 8 each
March 15 500 units @ Rs. 9 each
March 25 400 units @ Rs. 8.50 each

Sales :
March 3 300 units
March 10 500 units
March 17 400 units
4. The following information is provided by Sagar Ltd. for the month of March’2015:

Particulars Units
Opening Stock 800 @ Rs. 20 per unit
Purchases:
05.03.2014 2,400 @ Rs. 24
08.03.2014 4,000 @ Rs. 28
12.03.2014 4,800 @Rs. 32
Sales:
06.03.2014 2,000
10.03.2014 3,200
14.03.2014 4,000
Calculate the closing stock by using Weighted Average method and FIFO method.
5. The following information is provided by A Ltd. for the month of April’2015:
Particulars Units
Opening Stock 200 @ Rs. 10 per unit
Purchases:
05.04.2015 600 @ Rs. 12
08.04.2015 1,000 @ Rs. 14
12.04.2015 1,200 @Rs. 16
Sales:06.04.2015 500
10.04.2015 800
14.04.2015 1,000
Calculate the closing stock by using FIFO method and Weighted Average method.

6. From the following data, calculate the value of closing inventory according to weighted
average method and FIFO method on March 31, 2015.
March 1 Stock in hand 400 units @ Rs. 7.50 each
Purchases : March 5 1,200 units @ Rs. 16 each
March 15 1,000 units @ Rs. 18 each
March 25 800 units @ Rs. 17 each
Sales : March 3 600 units
March 10 1,000 units
March 17 800 units

7. The following information is provided by S Ltd. for the month of April’2014:

Particulars Units
Opening Stock 100 @ Rs. 5 per unit
Purchases:
05.04.2014 300 @ Rs. 6
08.04.2014 500 @ Rs. 7
12.04.2014 600 @Rs. 8
Sales:
06.04.2014 250
10.04.2014 400
14.04.2014 500
Calculate the closing stock by using FIFO method and weighted Average Method.

8. The following information is provided by Sarita Ltd. for the month of April’2014:

Particulars Units
Opening Stock 400 @ Rs. 10 per unit
Purchases:
05.04.2014 1,200 @ Rs. 12
08.04.2014 2,000 @ Rs. 14
12.04.2014 2,400 @Rs. 16
Sales:
06.04.2014 1,000
10.04.2014 1,600
14.04.2014 2,000
Calculate the closing stock by using FIFO method and Weighted Average method.
9. From the following data, calculate the value of closing inventory according to weighted
Average andFIFO methodon March 31, 2014.
March 1 Stock in hand 400 units @ Rs. 7.50 each
Purchases :
March 5 600 units @ Rs. 8 each
March 15 500 units @ Rs. 9 each
March 25 400 units @ Rs. 8.50 each
Sales :
March 3 300 units
March 10 500 units
March 17 400 units

Economic Order Quantity( 8 or 7 Marks)

1. A Company manufactures a product from a raw material, which is purchased at Rs.60 per kg. The
company incurs a handling cost of Rs.360 plus freight of RS.390 per order. The incremental carrying cost of
inventory of raw material is Rs.0.50 per kg. per month. In addition, the cost of working capital finance on the
investment in inventory of raw material is Rs.9 per kg. per annum. The annual production of the product is
1,00,000 units and 2.5 units are obtained from one kg of raw material. Calculate EOQ.

2. a) X ltd manufactures a special product ‘ZED’ and provides the following information:
Demand of ZED is 1,000 units per month; Semi-annual carrying cost -6%; Raw material required per unit
of finished product-2 kg; ordering cost per order-Rs.90; Purchase price of input unit-Rs.25 per kg.
Calculate EOQ.

b) Z ltd manufactures a special product and provides the following information:

Demand of product is 4,000 units per month; Semi-annual carrying cost -3%; Raw material required per
unit of finished product-4 kg; ordering cost per order-Rs.180; Purchase price of input unit-Rs.50 per kg.
Calculate EOQ.