Cost Sheet Questions

COST SHEET QUESTIONS
1. Calculate the profit amount from the following particulars of current year 2021.
Opening Stock: Rs.
Raw Materials 5,000
Finished goods 4,000
Closing Stock: Rs.

Raw materials 4,000
Finished goods 5,000
Other information Rs.

Raw materials purchased 50,000
Wages paid to laborers 20,000
Chargeable expenses 2,000
Rent, rates & taxes 5,000
Power 2,000
Factory lightings 2,000
Factory insurance 1,000
Depreciation on Machinery 500
Factory Fuel 200
Office management salaries 4,000
Office printing and stationery 200
Salaries of sales men 2,000
Commission of travelling agents 1,000
Sales 1,00,000
2. From the following particulars calculate profit per ton.

Paniculars Rs. Paniculars Rs.
Direct Raw Materials 33,000 Depreciation of off building 1,000
Direct Wages 35,000 Depreciation of delivery Van 200
Direct Expenses 3,000 Bad debts 100
Factory Rent and rates 7,500 Advertising 300
Indirect Wages 10,500 Salaries of Salesmen 1,500
Factory Lighting 2,050 Up keeping of delivery Van 700
Factory Heating 1,500 Bank charges 100
Power (Factory) 4,400 Commission on sales 1,500
Office Stationery 900 Rent and rates 500
Director's Remuneration (Fact) 2,000 Loose tools 600
Director's Remuneration (Off) 4,000 Output (tonnes)
Factory Cleaning 1,000 (sales @ Rs.40 per ton) 5,000
Sundry Office Expenses 200 Factory Stationery 750
Water supply (Factory) 1,300 Factory Insurance 1,100
Office Insurance 500 Legal Expenses 400
Rent of Warehouse 300 Depreciation Plant&Machinery 2,000
3. From the following information, prepare a cost sheet for period ended on 31st March....
Rs.
Opening stock of raw material 12,500
Purchases of raw material 1,36,000
Closing stock of raw material 8,500
Direct wages 54,000
Direct expenses 12,000
Factory overheads 100% of direct wages
Office and administrative overheads 20% of works cost
Selling and distribution overheads 26,000
Cost of opening stock of finished goods 12,000
Cost of Closing stock of finished goods 15,000
Profit on cost 20%
4. The following information is given to you from which you are required to prepare Cost
Sheet for the period ended on 31st Oct 2020:
Consumable material: Rs.

Opening stock 20,000
Purchases 1,22,000
Closing stock 10,000
Direct wages 36,000
Direct Expenses 24,000
Factory overheads 50 % of direct wages
Office and administration overheads 20% of works cost
Selling and distribution expenses Rs.3 per unit sold
Units of finished goods:

In hand at the beginning of the period (Rs. 12500) 500
Units produced during the period 12,000
In hand at the end of the period 1,500
Find out the selling price per unit if 20% profit on selling price. There is no work-in-progress
either at the beginning or at the end of the period.
5. Use Q1 information to find solution.

As a newly appointed Cost Accountant, a work order has to be prepared for the next year
and the following expenses are expected to incur; Material Rs. 4500 and Wages Rs 2700.
Assume that in 2022, the rate of factory charges will increase by 20%, selling and distribution
charges will go down by 10% and administration charges increase by 15%. At what price
should the product has to be sold in the market so as to earn same profit percentage like 2021.
6. An advertising agency has received an enquiry for which you are supposed to submit the
quotation.
Bill of material prepared by the production department for the job states the following
requirement of material:
Paper 10 reams @ Rs.1800 per ream
Ink and other printing material Rs.5000
Binding material & other consumables Rs.3000
Some photography is required for the job. The agency does not have a photographer as an
employee. It decides to hire one by paying Rs.10000 to him. Estimated job card prepared by
production department specifies that service of following employees will be required for this
job:
Artist (Rs.12000 per month) 80 hours
Copywriter (Rs.10000 per month) 75 hours
Manager (Rs.9000 per month) 30 hours
The primary packing material will be required to the tune of Rs.4000. Production Overheads
40% of direct cost, while the S & D Overheads are likely to be 25% on Production Cost. The
agency expects a profit of 20% on the quoted price. The agency works 25 days in a month
and 6 hours a day.
7. PR Ltd. manufactures and sells a typical brand of Tiffin Boxes under its own brand name.
The installed capacity of the plant is 1,20,000 units per year distributable evenly over
each month of calendar year.
The Cost Accountant of the company has informed the following cost structure of the
product, which is as follows:
Raw Material Rs. 20 per unit.
Direct Labour Rs. 12 per unit
Direct Expenses Rs. 2 per unit
Variable Overheads Rs. 16 per unit.
Fixed Overhead Rs. 3,00,000.
Semi-variable Overheads are as follows:
Rs. 7,500 per month upto 50% capacity & Additional Rs. 2,500 per month for every
additional 25% capacity utilization or part thereof.
The plant was operating at 50% capacity during the first seven months of the calendar year
2021, at 100% capacity in the remaining months of the year.
The selling price for the period from 1st Jan, 2021 to 31st July, 2021 was fixed at Rs. 69 per
unit. The firm has been monitoring the profitability and revising the selling price to meet its
annual profit target of Rs. 8,00,000. You are required to suggest the selling price per unit for
the period from 1st August 2021 to 31st December 2021.
Prepare Cost Sheet clearly showing the per unit cost and profit for the period.
a.. from 1st Jan. to 31st July, 2021
b. from 1st Aug. to 31st Dec, 2021.
8. X Ltd. Provides you the following figures for the year 2020-21:
Particulars Rs.
Direct Material 3,20,000
Direct Wages 8,00,000
Production Overheads (25% variable) 4,80,000
Administration Overheads (75% Fixed) 1,60,000
Selling and Distribution Overheads (2/3rd Fixed) 2,40,000
Sales @ Rs. 125 per unit 25,00,000
For the year 2021-22, it is estimated that:

1. Output and sales quantity will increase by 20% by incurring additional Advertisement
Expenses of Rs. 45,200.
2. Material prices will go up 10%.
3. Wage Rate will go up by 5% along with, increase in overall direct labour efficiency by
12%.
4. Variable Overheads will increase by 5%.
5. Fixed Production Overheads will increase by 33 1/3 %
Required:
(a) Calculate the Cost of Sales for the year 2020-2022.
(b) Find out the new selling price for the year 2021-2022.
(i) If the same amount of profit is to be earned as in 2020-2021.
(ii) If the same percentage of profit to sales is to be earned as in 2020-2021.
(iii) If the existing percentage of profit to sales is to be increased by 25%.
(iv) If Profit per unit Rs. 10 is to be earned.
9. The following are the costing records for the year 2021 of a manufacturer:
Production 10,000 units; Cost of Raw Materials Rs. 2,00,000; Labour Cost Rs. 1,20,000;
Factory Overheads Rs. 80,000; Office Overheads Rs. 40,000; Selling Expenses Rs. 10,000,
Rate of Profit 25% on the Selling Price.
The manufacturer decided to produce 15,000 units in 2022. It is estimated that the cost of raw
materials will increase by 20%, the labour cost will increase by 10%, 50% of the overhead
charges are fixed and the other 50% are variable. The selling expenses per unit will be
reduced by 20%. The rate of profit will remain the same.
Prepare a Cost Statement for the year 2022 showing the total profit and selling price per unit.

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COST SHEET QUESTIONS

Closing Stock: Rs.

Other information Rs.

2. From the following particulars calculate profit per ton.

Consumable material: Rs.

Units of finished goods:

5. Use Q1 information to find solution.

For the year 2021-22, it is estimated that:

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