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Cost Sheet Practical Solevd Questions

The document provides information and instructions for preparing cost sheets from raw materials and production data for different companies. It includes direct and indirect expenses for manufacturing jeans, with a expected 20% profit margin. A second cost sheet example breaks out prime cost, factory cost, cost of production, and total cost. A third provides monthly production and expense details for The Bangalore Ltd. and requires preparation of a cost sheet. The cost sheets organize and calculate production costs from raw materials, labor, overhead, and other expenses.

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Mansi Verma
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328 views6 pages

Cost Sheet Practical Solevd Questions

The document provides information and instructions for preparing cost sheets from raw materials and production data for different companies. It includes direct and indirect expenses for manufacturing jeans, with a expected 20% profit margin. A second cost sheet example breaks out prime cost, factory cost, cost of production, and total cost. A third provides monthly production and expense details for The Bangalore Ltd. and requires preparation of a cost sheet. The cost sheets organize and calculate production costs from raw materials, labor, overhead, and other expenses.

Uploaded by

Mansi Verma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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COST SHEET

PRACTICAL SOLEVD QUESTIONS

Illustration 1.

Prepare a cost sheet of the following data relating to the manufacture of Jeans:

Number of Jeans manufactured during the month 1,000

Direct materials consumed 20,000

Direct labour 8,000

Indirect labour (in factory) 2,500

Supervision costs (in factory) 1,000

Factory premises rent 1,600

Factory lighting 600

Oil for machines 100

Depreciation of machines 500

Office overheads 8,000

Office salaries 2,000

Misc. office expenses 1,000

Selling and distribution overheads 6,000

Note: A profit margin of 20% on the total cost of goods is expected on the sale of Jeans.
Solution :
llustration 2

From the following information for the month of January, prepare a Cost Sheet to show the following

components : (a) Prime Cost, (b) Factory Cost, (c) Cost of Production, (d) Total Cost.

Direct material 57,000

Direct wages 28,500

Factory rent and rates 2,500

Office rent and rates 500

Plant repairs and maintenance 1,000

Plant depreciation 1,250

Factory heating and lighting 400

Factory manager’s salary 2,000

Office salaries 1,600

Director’s remuneration 1,500

Telephone and postage 200

Printing and stationery 100

Legal charges 150

Advertisement 1,500

Salesmen’s salaries 2,500

Showroom rent 500

Sales 1,16,000
Solution :
Illustration 3. The Bangalore Ltd. supplies you the following information and requires you to prepare a
cost sheet.

Stock of raw materials on 1st Sept., 2013 75,000

Stock of raw materials on 30th Sept., 2013 91,500

Direct wages 52,500

Indirect wages 2,750

Sales 2,00,000

Work-in-progress on 1st Sept., 2013 28,000

Work-in-progress on 30th Sept., 2013 35,000

Purchases of raw materials 66,000

Factory rent, rates and power 15,000

Depreciation of plant and machinery 3,500

Expenses on purchases 1,500

Carriage outward 2,500

Advertising 3,500

Office rent and taxes 2,500

Travellers’ wages and commission 6,500

Stock of finished goods on 1st Sept., 2013 54,000

Stock of finished goods on 30th Sept., 2013 31,000

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