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Cost Sheet 1

The cost sheet summarizes the expenses of producing 50,000 units of a product in 2008 for Company X. It shows: 1) Prime cost of Rs. 275,000 including raw materials of Rs. 250,000 and direct wages of Rs. 25,000. 2) Factory cost of Rs. 350,000 after adding factory overheads of Rs. 75,000. 3) Cost of production of Rs. 375,000 after including office overheads of Rs. 25,000. 4) Cost of sales was not determined as selling overheads were not provided.

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284 views6 pages

Cost Sheet 1

The cost sheet summarizes the expenses of producing 50,000 units of a product in 2008 for Company X. It shows: 1) Prime cost of Rs. 275,000 including raw materials of Rs. 250,000 and direct wages of Rs. 25,000. 2) Factory cost of Rs. 350,000 after adding factory overheads of Rs. 75,000. 3) Cost of production of Rs. 375,000 after including office overheads of Rs. 25,000. 4) Cost of sales was not determined as selling overheads were not provided.

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Tamilselvi A
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COST SHEET

The expenses of a product are analysed under different heads in the


form of statement. This statement is called cost sheet.
Purpose of Cost sheet:
1. I provides details of total cost under logical classification
2. It provides cost per unit in different stages
3. It helps in comparison and control of cost
4. Cost sheet is helpful in estimation of cost for preparation of
tenders and quotations.
5. It acts as basis for fixation of selling prices.
During the year 2008, X Ltd., produced 50000 units of a product.
The following were the expenses.
Rs.
Stock of raw materials on 1.1.2008
10000
Stock of raw materials on 31.12.2008
20000
Purchases
160000
Direct wages
75000
Direct expenses
25000
Factory expenses
37500
Office expenses
62500
Selling expenses
25000
You are required to prepare a cost sheet showing cost per unit and
total cost at each stage.
PRIME COST, FACTORY COST, COST OF PRODUCTION
AND COST OF SALES.
COST SHEET OF X Ltd. For the year ending 31.12.2008
Particulars Rs. Rs. Rs. Per unit
Opening stock of raw materials 10000
Add: Purchases of raw materials 160000
170000 150000 3.00
Less: Closing stock of raw materials
20000 75000 1.50
Raw Materials consumed 250000
25000 0.50
Direct wages
37500 5.00
Direct expenses
PRIME COST (a) 0.75
Add: Factory Overheads 287500 5.75
Factory Overheads
62500 1.25
FACTORY COST (b)
Add: Office Overheads 350000 7.00
Office overheads 25000 0.50
COST OF PRODUCTION (c) 375000 7.50
Add: Selling overheads
Selling overheads
COST OF SALES (d)
Statement of cost and profit for the month of December 1985
Particulars Rs. Rs.
Opening stock of raw material 25000
Add: Purchase of raw material 21900
Add: Carriage on purchase 1100
48000
Less: Closing stock of raw material 26200 21800
Raw material consumed 17200
Direct wages 1200
Direct expenses 40200
PRIME COST
Add: Factory Overheads 800
Non-productive wages 8300
Factory overheads 9100
8200
Add: Opening work-in-progress 17300 8200
9100
Less: Closing work-in-progress
Total Factory overheads
WORK COST 48400
Add: Office overheads 3200
Administrative OHs 17300
Add: Opening Finished goods 20500
15700
Less: Closing Finished goods 4800
Total Office Overheads 53200
COST OF PRODUCTION 4200
Add: Selling and Distribution OHs
Selling OHs
TOTAL COST 57400
PROFIT[bal.fig] 14900
SALES 72300

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