Cost and Management Accounting Project Name: Moushumi Mukherjee ROLL NO: 029 Section: ST - 5

COST AND MANAGEMENT ACCOUNTING PROJECT NAME: MOUSHUMI MUKHERJEE ROLL NO: 029 SECTION: ST - 5
PROJECT TOPIC
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Select any joint stock company (BSE 30 Company preferred) Give a brief profile of the company. Copy final account of any recent year from website (p&l, balance sheet). Discuss format, utility, limitation of Historical cost sheet. From copied final account prepare cost sheet of the company. Make necessary assumption.
CONTENTS
1. 2. 3. 4. 5. 6.
Brief profile of the company. Final account of recent year of the company. Format of Historical cost sheet. Utility of Historical cost sheet. Limitation of Historical cost sheet. Cost sheet of the company.
Company Profile
Hindustan Unilever Limited (HUL) (BSE: 500696) is India's largest fast moving consumer goods company owned by the European company Unilever. The Anglo-Dutch company Unilever owns a 52% majority stake. HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has employee strength of over 15,000 employees and contributes to indirect employment of over 52,000 people. The company was renamed in June 2007 as Hindustan Unilever Limited. Hindustan Unilever's distribution covers over 1 million retail outlets across India directly and its products are available in over 6.3 million outlets in the country, nearly 80% of all retail outlets in India. The company claims that two out of three Indians use its many home and personal care products, food and beverages. HUL is the market leader in Indian consumer products with presence in over 20 consumer categories such as soaps, tea, detergents and shampoos amongst others with over 700 million Indian consumers using its products. Sixteen of HULs brands featured in the ACNielsen Brand Equity list of 100 Most Trusted Brands Annual Survey (2008). According to Brand Equity, HUL has the largest number of brands in the Most Trusted Brands List. It has consistently had the largest number of brands in the Top 50, and
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in the Top 10 (with 4 brands).
FINAL ACCOUNT OF HINDUSTAN UNILEVER LIMITED

Profit & Loss account of HindustanUnilever
------------------- in Rs. Cr. ------------------Mar '11 12 mths Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments 20,598.89 908.98 19,689.91 439.48 295.08 20,424.47 18,462.34 693.22 17,769.12 CVC199.73 19.47 17,988.32 Mar '10 12 mths
Total Income Expenditure

Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses
10,494.33 274.74 961.27 551.25
9,003.97 244.34 936.30 412.19
Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalized
4,366.30 672.61 0.00 17,320.50
3,737.52 656.57 0.00 14,990.89
Total Expenses
Mar '11 12 mths Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) 21,594.72 10.68 2,664.49 3,103.97 0.24 3,103.73 220.83 0.00 2,882.90 -3.06 2,879.84 573.87 2,305.97 6,826.17 0.00 1,410.60 231.36
Mar '10 12 mths 2,797.70 2,997.43 6.98 2,990.45 184.03 0.00 2,806.42 43.97 2,850.39 648.36 2,202.03 5,986.92 0.00 1,417.94 238.03
21,816.87 10.09
Equity Dividend (%) Book Value (Rs)
650.00 12.19
650.00 11.84
Balance sheet of Hindustan Unilever Limited

Mar ' 11 Equity share capital Share application money Preference share capital Reserves & surplus Secured loans Unsecured loans Total Gross block Less : revaluation reserve Less : accumulated depreciation Net block 215.95 2,417.30 2,633.25 3,759.62 0.67 1,590.46 2,168.49
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Mar'10 218.17 2,364.68 2,582.85 3,581.96 0.67 1,419.85 2,161.44
Mar ' 11 Capital work-in-progress Investments Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding (Lacs) 299.08 1,260.68 6,494.19 7,589.19 -1,095.00 2,633.25 108.93 1,279.49 663.00 21594.72
Mar'10 273.96 1,264.08 5,818.89 6,935.52 -1,116.63 2,582.85 466.46 953.58 468.49 21816.87
COST SHEET FORMAT

Particulars Opening Stock of Raw Material Add: Purchase of Raw materials Add: Purchase Expenses Less: Closing stock of Raw Materials Raw Materials Consumed Direct Wages (Labour) Direct Charges Prime cost (1) Amoun t *** *** *** *** *** *** *** *** Amoun t
Add :- Factory Over Heads: Factory Rent Factory Power Indirect Material Indirect Wages Supervisor Salary Drawing Office Salary Factory Insurance Factory Asset Depreciation Works cost Incurred Add: Opening Stock of WIP Less: Closing Stock of WIP Works cost (2) Add:- Administration Over Heads:Office Rent Asset Depreciation General Charges Audit Fees Bank Charges Counting house Salary Other Office Expenses Cost of Production (3) Add: Opening stock of Finished Goods Less: Closing stock of Finished Goods Cost of Goods Sold Add:- Selling and Distribution OH:*** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** ***
Sales man Commission Sales man salary Traveling Expenses Advertisement Delivery man expenses Sales Tax Bad Debts Cost of Sales (5) Profit (balancing figure) Sales
*** *** *** *** *** *** *** *** *** ***
Notes:1) Factory Over Heads are recovered as a percentage of direct wages 2) Administration Over Heads, Selling and Distribution Overheads are recovered as a percentage of works cost.
Advantages and disadvantages of historical cost sheet

Advantages

Historical cost sheet are straightforward to produce Historical cost sheet do not record gains until they are realized Historical cost sheet are still used in most accounting systems
Disadvantages Historical cost sheet give no indication of current values of the assets of a business Historical cost sheet do not record the opportunity costs of the use of older assets, particularly property which may be recorded at a value based on costs incurred many years ago Historical cost sheet do not measure the loss of value of monetary
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assets as a result of inflation.
COST SHEET OFHINDUSTAN UNILEVER LIMITED FOR THE YEAR 2011

PARTICULARS AMOUNT (RS.) 9,003.97 ************* AMOUNT (RS.)
Opening Stock of Raw Material

Add: Purchase materials of Raw
10,494.33 - 1,490.36 551.25
Less: Closing stock of Raw Materials Raw Materials
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Consumed Add :
Expenses Other Manufacturing -939.11
Prime cost (1) Add :- Factory Heads:

Power & Fuel Cost
Employee Cost
Over
274.74 961.27 220.83 1456.84
Depreciation
Works cost Incurred (2)
Add:Administration Over Heads:Miscellaneous Expenses 672.61 672.61
Cost of Production (3) Add:Selling and Distribution OH:Selling and Admin Expenses 4,366.30
Cost of Sales (4) Profit (balancing figure) Sales
4,366.30 15,042.05 20,598.89
Assumptions: 1. The miscellaneous expenses come under administration overhead. 2. The selling and admin expenses come under selling and distribution overhead.
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Cost and Management Accounting Project Name: Moushumi Mukherjee ROLL NO: 029 Section: ST - 5

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Cost and Management Accounting Project Name: Moushumi Mukherjee ROLL NO: 029 Section: ST - 5

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COST AND MANAGEMENT ACCOUNTING PROJECT NAME: MOUSHUMI MUKHERJEE ROLL NO: 029 SECTION: ST - 5

in the Top 10 (with 4 brands).

FINAL ACCOUNT OF HINDUSTAN UNILEVER LIMITED

Total Income Expenditure

10,494.33 274.74 961.27 551.25

9,003.97 244.34 936.30 412.19

Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalized

4,366.30 672.61 0.00 17,320.50

3,737.52 656.57 0.00 14,990.89

Equity Dividend (%) Book Value (Rs)

Balance sheet of Hindustan Unilever Limited

Mar'10 218.17 2,364.68 2,582.85 3,581.96 0.67 1,419.85 2,161.44

COST SHEET FORMAT

Advantages and disadvantages of historical cost sheet

assets as a result of inflation.

COST SHEET OFHINDUSTAN UNILEVER LIMITED FOR THE YEAR 2011

Opening Stock of Raw Material

10,494.33 - 1,490.36 551.25

Less: Closing stock of Raw Materials Raw Materials

Prime cost (1) Add :- Factory Heads:

Add:Administration Over Heads:Miscellaneous Expenses 672.61 672.61

Cost of Sales (4) Profit (balancing figure) Sales

4,366.30 15,042.05 20,598.89

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