Solution Cost sheet of XYZ Co. as on ….

Ascertain the Prime cost, Work Cost, Cost of Production, Total

cost and Profit from the following. Particulars Amount Amount
Direct Materials 5,000 Direct Materials 5,000
Direct Labour 3,500 Direct Labour 3,500
Factory Expenses 1,500 Direct Expenses
Admin Expenses 800 Prime Cost 8,500
Selling & Dist. Expenses 700 Add : Factory Expenses 1,500
Sales 15,000 Work/ Production Cost 10,000
Add: Admin Expenses 800
Cost of Production 10,800
Profit = Sales - TC Add: Selling and Dist. Exp 700
Total Cost / Cost of Sales 11,500
Profit 3,500
Sales 15,000
Prepare a cost sheet of the following data relating to the manufacture of Jeans:
Number of Jeans manufactured during the month 1,000 Cost sheet of XYZ Co. as on …. Units produced 1000
₹ Sol Particulars Amount ₹ Cost per unit
Direct materials consumed 20000 Direct material Consumed 20,000 20
Direct labour 8000 Direct Labour 8000 8
Indirect labour (in factory) 2500 Direct Expenses
Supervision costs (in factory) 1000 Prime Cost 28000 28
Factory premises rent 1600 Add : Factory Overheads
Factory lighting 600 Indirect Labour 2500
Oil for machines 100 Supervision cost 1000
Depreciation of machines 500 Factory premises rent 1600
Office overheads 8000 Factory lighting 600
Office salaries 2000 Oil for Machines 100
Misc. office expenses 1000 Depreciation of Machines 500 6,300 6.3
Selling and distribution overheads 6000 Work/Factory Cost 34,300 34.3
Note: A profit margin of 20% on the total cost of goods is
expected on the sale of Jeans. Add: Office & Admin. Overheads
Office Overheads 8000
Profit = total cost X 20% Office Salaries 2000
51,300 x 20/100=10,260 Misc. Office Expenses 1000 11,000 11
Cost of Production 45,300 45.3
Add : Selling & Dist. Overheads 6000 6
Total Cost 51,300 51.3
Profit (20% on total cost) 10,260 10.26
Sales 61,560 61.56
 1. Prepare a cost sheet from
the following: Sol Particulars Amount₹
Materials 200,000
Labour 150,000
Factory Overheads 98,000
Office Expenses 85,000
Sales 510,000

2. Mr. Arjun Furnishes the following data relating

to manufacture of a product for the month Jan
2020
Materials 90,000
Direct Labour 60,000
Depreciation of Machinery 11,500 Sol Particulars Amount₹
Power and Consumable stores 12,000
Indirect wages factory 15,000
Lighting of factory 5,000
Cost of rectification of
defective Machine work 3,000
Office and selling overheads 39,000
sales 316,000
From the following information for the month of January, prepare a Cost Sheet to show the following components :
Cost sheet of ….. as on jan 2020
(a) Prime Cost, (b) Factory Cost, (c) Cost of Production, (d) Total Solution Particulars Amount ₹
Direct material 57,000 Direct Materials 57,000
Direct wages 28,500 Direct wages 28,500
Factory rent and rates 2,500 Direct Expenses
Office rent and rates 500 Prime Cost 85,500
Plant repairs and maintenance 1,000 Add : Work /Factory Overheads
Plant depreciation 1,250 Factory Rent and rates 2,500
Factory heating and lighting 400 Plant Repairs and maintenance 1,000
Factory manager’s salary 2,000 Plant Depreciation 1,250
Office salaries 1,600 Factory heating and lighting 400
Director’s remuneration 1,500 Factory Manager Salary 2,000 7,150
Telephone and postage 200 Factory /Work Cost 92,650
Printing and stationery 100 Add: Office and Administration Overhaeds
Legal charges 150 Office Rent and rates 500
Advertisement 1,500 Office salaries 1,600
Salesmen’s salaries 2,500 Director's Remuneration 1,500
Showroom rent 500 Telephone and Postage 200
Sales 116,000 Printing and Stationery 100
Legal Charges 150 4,050
Cost of Production 96,700
Add : Selling and Distribution Overheads
Advertisement 1,500
Salesmen's Salaries 2,500
showroom Rent 500 4,500
Cost of Sales / Total Cost 101,200
Profit 14,800
Sales 116,000
The Bangalore Ltd. supplies you the following information and requires you toCost Sheet of Bangalore Ltd as on 30th Sep 2013
Stock of raw materials on 1st Sept., 2013 75,000 Particulars Amount ₹
Stock of raw materials on 30th Sept., 2013 91,500 Opening stock of Raw materials 75,000
Direct wages 52,500 Add Purchases 66,000
Indirect wages 2,750 Expenses on Purchases 1500
Sales 200,000 142,500
Work-in-progress on 1st Sept., 2013 28,000 Less : Closing Stock of Raw Materia91,500
Work-in-progress on 30th Sept., 2013 35,000 Raw Materials Consumed 51,000
Purchases of raw materials 66,000 Direct Wages 52,500
Factory rent, rates and power 15,000 Direct Expenses
Depreciation of plant and machinery 3,500 Prime Cost 103,500
Expenses on purchases 1,500 Add : Factory Overheads
Carriage outward 2,500 Indirect Wages 2,750
Advertising 3,500 Factory Rent rates and power 15,000
Office rent and taxes 2,500 Dep. On Plant & Machinery 3,500
Travellers’ wages and commission 6,500 21,250
Stock of finished goods on 1st Sept., 2013 54,000 Add :Opening Stock of WIP 28,000
Stock of finished goods on 30th Sept., 2013 31,000 49,250
Less Closing Stock of WIP 35,000 14,250
44250 Factory / Work Cost 117,750
Add : Office Rent and Taxes 2,500
Cost of Production 120,250
Add : Opening Stock of F.G 54,000
174,250
Less : Closing Stock of F.G 31,000
Cost of Goods Sold 143,250
Add : Selling and Distribution Overheads
Advertising 3,500
Carriage Outward 2,500
Travellers’ wages and commission 6,500 12,500
Total Cost/ Cost of Sales 155,750
Profit (Balancing Figure) 44,250
Sales 200,000
 From the following information prepare a cost
sheet. Particulars Amount ₹
Raw materials purchased 32,250 Raw materials Purchased 32,250
Carriage on purchases 850 Carriage on Purchases 850
Direct wages 18,450 Raw materials Consumed 33,100
Factory overhead 2,750 Direct Wages 18,450
Selling overhead 2,450 Direct Expenses
Office overhead 1,850 Prime Cost 51,550
Sales 75,000 Add : Factory Overheads 2,750
Sale of factory scrap 250 less : Sale of Scrap 250 2,500
Opening stock of finished goods 9,750 Work Cost/ Factory Cost 54,050
Closing stock of finished goods 11,100 Add : Office Overheads 1,850
Cost of Production 55,900
Add : opening stock of FG 9,750
18000 65,650
Less : Closing Stock of FG 11,100
Cost of Goods Sold 54,550
Add: Selling overheads 2,450
Total Cost 57,000
Add: Profit 18,000
Sales 75,000
XYZ Co. furnishes the following data relating to the manufacture of a standard Units 2000
Particulars Units Amount Cost per Unit
Raw materials Consumed 40000 Raw materials Consumed 40000 20
Direct Labour 24000 Direct labour 24000 12
machine hour worked 4000 Prime Cost 64000 32
machine hour rate 2 Add : Factory Overheads
office overheads 10% of factory cost Machine hours X Rate 4000x2 8000 4
selling overheads 1.50 per unit Factory Cost 72000 36
units produced 2000 Add : Office Overheads
units sold 1800 @50 each 72000X10% = 7200 7200 3.6
Cost of Production 2000 79200 39.6
Less : Closing Stock 200 7920
(total produced units - sales)
2000-1800 =200 (200x 39.6=7920)
Cost of Goods Sold 1800 71,280 39.6
Add : Selling overheads (1800x 1.50) 2700 1.5
Total Cost 73,980 41.1
Profit 16,020 8.9
Sales 90000 50
 Working Notes
The accounts of Pleasant company shown as follows: Cost Sheet of Pleasant & Co. ****
Materials 350000 Particulars Amount Percentage of F.Ohds on Labour =F.ohds/Labour*100
Labour 270000 Materials 350000 30
Factiory overheads 81000 Labour 270000 Percentage of Admin Ovhds on F cost=Admin ohds/Factory Cost*100
Administrtaion overhaeds 56080 Prime Cost 620000 8
Add : Factory Overheads 81000
Factory Cost 701000
Estimation Add: Administration Overheads 56080 factory ohds = 30% on labour
Materials 4000 Cost of Production 757080 2100
Labour 7000 1048
Factory overheads based on Labour Estimation of selling Price of a Refrigerator
Office exp based on Factory Cost Materials 4000
Profit of 12 1/2 %on selling price Labour 7000
Prime Cost 11000
Factory Ovehds = 30% on Direct Labour Add : Factory Overheads 2,100 Note : When Selling Price /Sales is not known still if we need to calculate Profit o
Office Ovehds = 8% on Fcost Factory Cost 13100
Add : Admin Overheads 1,048 Profit=rate of % of profit ion sales X total cost/100-rate of profit
Cost of Production 14,148 2021.142857
Profit 2021
Sales 16,169
 Working Notes
The accounts of manufacturing company shown as followsCost Sheet of 1 Percentage of Factory Overheads on Labour=Factory Overheads/Labour *100
Materials 150,000 Particulars Amount 30,000/120000 x 100
Direct Wages 120,000 Materials 150000 25.0%
Factory overheads 30,000 Labour 120000
Administrtaion overhaeds 15000 Prime Cost 270000 2 Percentage of Admin Overheads on Factory Cost = Admin ovhds/Factory cost*
Add Factory Overheads 30000 15000/300000 X 100
Factory Cost 300000 5%
Estimation Add Office Overheads 15000
Materials 1250 Cost of Production 315000
Productive Wages 750
Profit of 20 %on selling price Estimated Cost Sheet
Materials 1250
Productive Wages 750 Profit to be calculated on selling price=rate of % of Profit on sales X Total Cost/1
Wages = 750 Prime Cost 2000
25% of wages = Factory Overheads Add : Factory Overheads 187.50
750 x 25% = 187.5 Factory Cost 2187.5 20 X 2296.8/100-20
Add : Office/ Admin Overheads 109.30
Factory Cost = 2187.5 Cost of Production 2296.8 Total Cos 20 X 2296.8/80
5% of FC= Admin Overheads Profit 574.2 574.2
2187.5 X 5% = 109.3 Selling Price 2,871
 Cost Sheet of Nath Engineering Co. Ltd for the year 2011 2000 sewing Machines
Following are the particulars for the production of 2,000 sewing
Amount Amount
Particulars ₹
machines of Nath Engineering Co. Ltd., for the year 2011: per Unit
Cost of Materials Rs. 1,60,000; Wages Rs. 2,40,000;
Manufacturing Expenses Rs. 1,00,000;
Salaries Rs. 1,20,000; Materials 160000 80
Rent, Rates and Insurance Rs. 20,000; Selling Expenses Rs. 60,000;
General Expenses Rs. 40,000 and Sales Rs. 8,00,000.
The company plans to manufacture 3,000 sewing machines during 2012.
You are required to submit a statement showing the price at which machines
would be sold so as to show a profit of 10% on selling price. Wages 240000 120
Prime Cost 400000 200
Add Factory Overheads 100000 50
Factory Cost 500000 250
Add Administration expenses
Percentage of Factory overheads on Prime Cost Salaries 120000 60
Factory overheads/Prime Cost *100 Rent rates and Insurance 20000 10
100000/400000*100 = 25% General Expenses 40,000 180,000 20
Cost of Production 680,000 340
Add: Selling Expenses 60,000 30
Total Cost 740,000 370
Add Profit 60,000 30
Sales 800,000 400

stimated Cost Sheet of Nath Engineering Co. ltd 2012 for 3000 Sewing Machine
Following additional information is supplied to you: Particulars Amount cost per unit
(a) Price of material is expected to rise by 20% Materials (80 X 20%) = 16 (80+16) 288,000 96
(b) Wages rates are expected to show an increase of 5%. Wages (120 X 5%) = 6 (120+6) 378,000 126
(c) Manufacturing expenses will rise in proportion to the combined cost of
materials and wages Prime Cost 666,000 222
(d) Selling expenses per unit will remain the same, Add : Factory Overheads 166500 55.5
(e) Other expenses will remain unaffected by the rise in output. Work Cost 832,500 277.5
Add : Office overheads 270,000 90
Percentage of Profit as of Prev year Cost of Production 1,102,500 367.5
Based on Total Cost = Profit /TC *100 Add: Selling Expenses 90000 30
60,000/740000*100= 8.108% Total Cost/ Cost of Sales 1,192,500 397.5
Profit 96688 32.22
Based on Sales = Profit /sales *100 = 60,000/8,00,000 * 100 =7.5% Sales 1,289,188 429.72
in 2012 Profit based on TC= 11,92,500*8.108% =96687.9 = 96688
Profit based on sales =8.108*1192500/100-8.108 = 8.108 x 1192500/91.892
96679.79
From the following data prepare a cost and profit statement of Popular Stoves Manufacturing Co. for the year 2011:

Particulars Amount Amount p

In respect of a factory the following particulars have been extracted for the year 2013 : Cost Sheet of a Factory as on 2013

Cost of materials 6,00,000 Wages 5,00,000 Factory overheads 3,00,000

Administration charges 3,36,000 Selling charges 2,24,000 Distribution charges
1,40,000 Profit 4,20,000 Particulars Amount ₹
A work order has to be executed in 2014 and the estimated expenses are : Materials 600000
Materials ` 8,000, wages ` 5,000. Wages 500000
Assuming that in 2014, the rate of factory overheads has gone up by 20%, Prime Cost 1100000
distribution charges have gone down by 10% and selling and administration charges have gone each up by 1 Add : Factory Overheads 300,000
at what price should the product be sold so as to earn the same rate of profit on the selling price as in 2013 ? Work/ Factory Cost 1400000
Factory overheads are based on wages and administration, selling and distribution overheads on factory cost Add : Admin. Overheads 336,000
Cost of Production 1736000
Percentage of Factory Overheads on Wages = Factory Overheads/Wages X 100 Add: Selling overhea 224,000
60 12 72% Distribution Overhea 140,000 364,000
Percentage of Admin overheads on factory cost Total Cost 2100000
24% 3.6 27.60% Add : Profit 420,000
% of Selling overheads on Fc % Distribution ovhds -= 10% 1 9% Sales 2520000
16% 16 x 15% 18.40%

% of Profit = Profit/Sales X 100 % of Profit on Total Cost =Profit /TC x 100 = 20% Estimated Cost Sheet for 2014
16% Materials 8000
403200 Wages 5000
Wages = 5000 Prime Cost 13000
Factory overheads = 5000 x 60/100 Add : factory Overheads 3600
3000x 20/100 Factory Cost 16600
3600 4940.16 Add Admin Overhea 16600x27.6% 4582
Cost of Production 21182
Add : Selling Overhea16600x18.4% 3054
Distribution Exp 16600x 9% 1494
Total Cost 25730
Add Profit 20% of 25730 5146
Selling Price 30876