Cost Sheet

Chapter 1
Cost Sheet Illustrations

1. Prepare cost sheet for the following data:
Particulars Amount
Rs.
Opening Stock of Raw Material 6720 1Direct

M
Material Purchased 150000 Mate
Material returned to suppliers 2,000 deducted
Direct Labour 50,000 2
Direct Expenses 20,000 3
Factory Expenses 15,300 FOH_5
Office & Administrative Expenses 8,000 AOH-19
Selling and Administrative Expenses 7,900 20
Profit 10,000 22
Closing Stock of Raw Material 7,720 1 less
2. Prepare a Cost Sheet for the year ended 31.3.2024 from the following figures
extracted from the books of Best Engineering Co.
Opening Stock:
 Raw Material 40,350,
 Work-in-Progress 15,000 and
 Finished Stock 35,590.
Cost incurred during the period:
Materials purchased 2,50,000, Wages paid 2,00,000, Carriage inward 2,000,

Consumable Stores 10,000, Wages of Storekeeper 7,000, Depreciation of Plant &
Machinery 10,000, Materials destroyed by Fire 5,000, Repairs & Renewals 5,010,
Office Manager’s Salary 10,000, Salary to Office Staff 20,500, Printing & Stationary
10,000, Power 10,500, Lighting for Office Building 2,000, Carriage outward 3,000,
Freight 5,000, Entertainment 2,500, Warehousing charges 1,500, Legal charges
2,000, Expenses for participating in Industrial exhibition-6,000. Charge Profit 25%
on cost.
Closing Stock:
(i) Raw material 35,000,
(ii) Work-in-Progress 14,500, and
(iii) Finished Stock 40,030.
3. From the following figures relating to the manufacture of a Electronic Product

during the month of Jan 2023, prepare a statement showing Cost and Profit per unit:
Particulars Amount Rs.
Opening Stock of Raw Material 6,500
Material Purchased 150,000
Material returned to suppliers 20,000
Direct Labour 50,000
Direct Expenses 80,000
Factory Expenses 25,000
Office & Administrative Expenses 13,000
Selling and Administrative Expenses 12,500
Profit 20% on Sales
Closing Stock of Raw Material 12,000
Prepare Cost Sheet for above particulars.

4. The following data relates to the manufacture of a standard product during themonth of
April:
Particulars (Amount)
Raw materials ` 1,80,000
Direct wages ` 90,000
Machine hours worked (hours) 10,000
Machine hour rate (per hour) `8
Administration overheads (general) ` 35,000
Selling overheads (per unit) `5
Units produced 4,000
Units sold 3,600
Selling price per unit ` 125
Prepare Cost Sheet.
5. The following information has been obtained from the records of ABCCorporation for
the period from June 1 to June 30,2024
On June 1 On
(`) June
30 (`)
Cost of raw materials 60,000 50,000
Cost of work-in-process 12,000 15,000
Cost of stock of finished goods 90,000 1,10,000
Purchase of raw materials during June 2020 4,80,000
Wages paid 2,40,000
Factory overheads 1,00,000
Administration overheads (related to production) 50,000
Selling & distribution overheads 25,000
Sales 10,00,000
6. Arnav Inspat Udyog Ltd. has the following expenditures for the year ended 31stMarch,
2021:
Sl. Amount Amount (`)

No. (`)
(i) Raw materials purchased 10,00,00,000
(ii) GST paid on the above purchases @18% 1,80,00,000
(eligible for input tax credit)
(iii) Freight inwards 11,20,600
(iv) Wages paid to factory workers 29,20,000
(v) Contribution made towards employees’ PF
& ESIS 3,60,000
(vi) Production bonus paid to factory workers 2,90,000
(vii) Royalty paid for production 1,72,600
(viii) Amount paid for power & fuel 4,62,000
(ix) Amount paid for purchase of moulds and
patterns (life is equivalent to two years
production) 8,96,000
(x) Job charges paid to job workers 8,12,000

(xi) Stores and spares consumed 1,12,000
(xii) Depreciation on:
Factory building 84,000
Office building 56,000
Plant & Machinery 1,26,000
Delivery vehicles 86,000 3,52,000
(xiii) Salary paid to supervisors 1,26,000
(xiv) Repairs & Maintenance paid for:
Plant & Machinery 48,000
Sales office building 18,000
Vehicles used by directors 19,600 85,600
(xv) Insurance premium paid for:
Plant & Machinery 31,200
Factory building 18,100
Stock of raw materials & WIP 36,000 85,300
(xvi) Expenses paid for quality control check
activities 19,600
(xvii) Salary paid to quality control staffs 96,200
(xviii) Research & development cost paid for
improvement in production process 18,200
(xix) Expenses paid for pollution control and
engineering & maintenance 26,600
(xx) Expenses paid for administration of factory
work 1,18,600
(xxi) Salary paid to functional mangers:
Production control 9,60,000
Finance & Accounts 9,18,000
Sales & Marketing 10,12,000 28,90,000
(xxii) Salary paid to General Manager 12,56,000
(xxiii) Packing cost paid for:
Primary packing necessary to maintain
quality 96,000
For re-distribution of finished goods 1,12,000 2,08,000
(xxiv) Wages of employees engaged
indistribution of goods 7,20,000
(xxv) Fee paid to auditors 1,80,000
(xxvi) Fee paid to legal advisors 1,20,000
(xxvii) Fee paid to independent directors 2,20,000
(xxviii) Performance bonus paid to sales staffs 1,80,000
(xxix) Value of stock as on 1st April, 2020:
Raw materials 18,00,000
Work-in-process 9,20,000
Finished goods 11,00,000 38,20,000
(xxx) Value of stock as on 31st March, 2021:
Raw materials 9,60,000
Work-in-process 8,70,000
Finished goods 18,00,000 36,30,000
Amount realized by selling of scrap and waste generated during manufacturing

process – ` 86,000/-
From the above data you are required to PREPARE Statement of cost for Arnav
Ispat Udyog Ltd. for the year ended 31st March, 2021, showing (i) Prime cost, (ii)
Factory cost, (iii) Cost of Production, (iv) Cost of goods sold and (v) Cost of sales.

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Chapter 1

Cost Sheet Illustrations

Opening Stock of Raw Material 6720 1Direct

Material returned to suppliers 2,000 deducted

Direct Labour 50,000 2

Direct Expenses 20,000 3

Factory Expenses 15,300 FOH_5

Office & Administrative Expenses 8,000 AOH-19

Selling and Administrative Expenses 7,900 20

Closing Stock of Raw Material 7,720 1 less

Materials purchased 2,50,000, Wages paid 2,00,000, Carriage inward 2,000,

(i) Raw material 35,000,

(ii) Work-in-Progress 14,500, and

(iii) Finished Stock 40,030.

3. From the following figures relating to the manufacture of a Electronic Product

Particulars Amount Rs.

Opening Stock of Raw Material 6,500

Material Purchased 150,000

Material returned to suppliers 20,000

Direct Labour 50,000

Direct Expenses 80,000

Factory Expenses 25,000

Office & Administrative Expenses 13,000

Selling and Administrative Expenses 12,500

Profit 20% on Sales

Closing Stock of Raw Material 12,000

Prepare Cost Sheet for above particulars.

Sl. Amount Amount (`)

(x) Job charges paid to job workers 8,12,000

Amount realized by selling of scrap and waste generated during manufacturing

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