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CMA Assignment Problem Set 1

The document contains two parts: Part A calculates various cost percentages for a works project, and Part B provides a cost sheet showing calculations for direct costs, overhead costs, cost of goods sold, profit, and more. It demonstrates how to calculate total cost, works cost, prime cost, and other financial metrics for a manufacturing business.

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Antesh Singh
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49 views4 pages

CMA Assignment Problem Set 1

The document contains two parts: Part A calculates various cost percentages for a works project, and Part B provides a cost sheet showing calculations for direct costs, overhead costs, cost of goods sold, profit, and more. It demonstrates how to calculate total cost, works cost, prime cost, and other financial metrics for a manufacturing business.

Uploaded by

Antesh Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Given

Item Value (Rs.)


Materials used 180000
Manual and machine labour wages directly chargeable 160000
Works overhead expenditure 40000
Establishment and general expenses 19000

Part a
To Find Works Cost
Total Cost
%works OH/ Manual & machine labour wages
% establishment & general expenses/ works cost

Solution
Prime Cost= Direct Material + Direct Labour 340000
Works Cost= Prime Cost + Factory OH 380000
Total Cost 399000
%works OH/ Manual & machine labour wages 25%
% establishment & general expenses/ works cost 5%

Part b
To Find
Direct material 8000
Direct labour 6000
Works overhead expenditure 1500
Establishment and general expenses 775
Profit (20% of selling price or 25% of cost) 4069
Total Cost 20344
Cost Sheet
Item
Sales
Opening Inventory
Materials
WIP
FG

Closing Inventory
Materials
WIP
FG

Raw materials purchased


Direct labour
Chargeable expenses

Factory OH @50% of Direct Labour

Direct Materials= RM purchased+ opening RM stock- closing RM stock


Prime Cost= Direct Materials + Direct Labour + Direct Expenditure

Works Cost Gross= Prime Cost + Factory OH


Works Cost Net= Works Cost Gross + opening WIP stock- closing WIP stock
Administrative OH@ 10% of Works Cost
Selling OH @ 5% of Sales

Cost of Goods Sold= Cost of Production + Opening FG stock - closing FG stock


Cost of Sale

Profit/ Loss = Sales- Cost of Sales


Value (Rs.)
275000

3000
4000
8000

4000
6000
7000

110000
65000
10000

32500

109000
184000

216500
214500
21450
13750

215500
250700

24300
Item Value (Rs.)
Raw Materials 4000
Wages 6000
Machine hours worked 1000
Rate/ hr. 0.5
Machining Cost= machine hrs* rate/ hr 500

Works Cost 10500

Office OH @20% of works cost 2100

Total cost 12600


Total no. Of units produced 20000
Cost/ unit 0.63

Selling Cost 0.06


Total cost/unit 0.69

No. of Units Sold 18000


SP /unit 1
Sales 18000

Cost of 18000 units 12420

Profit/ Loss 5580

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