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Annamalai Academy
CA – CMA – MBA Classes
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Cost Accounting – Cost Sheet

COST SHEET
Particulars Amount Per Unit
Raw Material
Opening Stock of Raw Material ***
Add: Purchase of Raw materials ***
Add: Purchase Expenses ***
Less: Closing stock of Raw Materials *** ***
Raw Materials Consumed *** ***
Direct Wages ***
Direct Charges
Prime Cost ***
Add :- Factory Over Heads:
- Factory Power ***
- Indirect Material ***
Factory Cost ***
Add: Opening Stock of WIP ***
Less: Closing Stock of WIP ***
Works cost ***
Add:- Administration Over Heads:-
- Office Rent ***
- Asset Depreciation ***
- General Charges ***
- Audit Fees ***
- Bank Charges ***
Cost of Production ***
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 ***

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- Advertisement ***
Cost of Sales ***
Profit ***
Sales ***
Question 1

The flowing Details are available from the books of Ferrolinks Limited as on 31-March-2022.

Direct Wages 6,00,000

Purchase of Raw Materials 7,20,000
Other Materials 36,000
Carriage 8,640
Wages of Foremen 48,000
Other Indirect Wages 6,000
Cost of Research and Experiments 30,000
Office Manager’s Salary 84,000
Employee State Insurance 6,000
Power, Fuel etc., 54,000
Office Expenses 36,000
Printing and Stationery 12,000
Sales 18,00,000
Stock as on 1-Apl-2021
Raw Materials 1,20,000
Work In Progress 28,800
Finished Products ( Units) 6,000
Stock as on 31-March-2022,
Raw Materials 1,33,440
Work in Progress 96,000
Finished Products (Units) 12,000
Income Tax 22,000
Donation 5,000

Selling and Distribution Expenses are to be charged at Rs.1 per unit. 96,000 units were produced
during the year. Prepare the cost sheet showing different elements of cost and profit

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Cost Sheet for 96,000 Units

Particulars Per Unit Amount
Raw Material
Opening Stock of Raw Material 1,20,000
Add: Purchase of Raw materials 7,20,000
Add: Carriage 8,640
Less: Closing stock of Raw Materials 1,33,440
Raw Materials Consumed 7,15,200
Direct Wages 6,00,000
Direct Charges
Prime Cost 13,15,200
Add :- Factory Over Heads:
- Other Materials 36,000
- Wages for Foremen 48,000
- Other Indirect Wages 6,000
- Power & Fuel 54,000
1,44,000
Factory Cost 14,59,200
Add: Opening Stock of WIP *** 28,800
Less: Closing Stock of WIP *** 96,000
Works cost 13,92,000
Add:- Administration Over Heads:-
- Cost of Research 30,000
- Office Managers Salary 84,000
- Employee State Insurance 6,000
- Office Expenses 36,000
- Printing & Stationery 12,000
Cost of Production – 96,000 Units 16.25 15,60,000
Add: Opening stock of Finished Goods 97,500

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6,000 x 16.25
Less: Closing stock of Finished Goods 1,95,000
12,000 x 16.25
Cost of Goods Sold – 90,000 Units 14,62,500
Add:- Selling and Distribution OH:- 90,000
(90,000 x Re.1)
Cost of Sales 15,52,500
Profit ( Balancing Value) 2,47,500
Sales 18,00,000

Particulars Amount Per Unit

Question 2

Following are the information obtained from the books of Aditya Chemicals Ltd for a
Production of 50,000 units as on 31-March-2022. Prepare a Cost Sheet .

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Inventories as on 1-April-2021
- Raw materials 1,40,000
- Work In Progress 2,00,000
- Finished Stock 5,000 Units
Office Appliances 17,400
Plant and Machinery 4,60,500
Buildings 2,00,000
Sales 7,68,000
Sales Returns and Rebates 14,000
Materials Purchased 3,20,000
Freight Incurred on Materials 16,000
Purchase Returns 4,800
Direct Labour 1,60,000
Indirect Labour 18,000
Factory Supervisor Salary 10,000
Repairs and Factory Maintenance 14,000
Power 65,000
Taxes 6,300
Miscellaneous Factory Expenses 18,700
Sales Commission 33,600
Sales Travelling 11,000
Sales Promotion 22,500
Distribution Department – Salaries 18,000
Office Salaries and Expenses 8,600
Rent 45,000
Interest on Borrowed Funds 2,000
Inventories 31-March-2014
- Raw materials 1,80,000
- Work In Progress 1,92,000
- Finished Stock 10,000 Units
Depreciation on
- Office Appliances 5%
- Plant and Machinery 10%
- Buildings 4%

Distribution of Expenses
- Power Expenses to Factory, Office and Distribution Centre is 8:1:1
- Rent two-thirds to factory and one-third to Office
- Depreciation on Building to Factory, Office and Selling 8:1:1

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COST SHEET for 50,000 units

Job Costing
Question 3
India Pistons Limited furnishes the following particulars with regard to a Grinding Job
Raw Materials Rs.4,10,255
Wages for
Shop Floor 1: 600 Hours @ Rs. 52 Per Hour
Shop Floor 2: 400 Hours @ Rs. 87 Per Hour
Shop Floor 3: 200 Hours @ Rs. 68 Per Hour
Overhead expenses
Variable overheads:
Shop Floor 1: Rs.5,45,000 for 5,000 Man Hours
Shop Floor 2: Rs.6,24,000 for 3,250 Man Hours
Shop Floor 3: Rs 3,20,000 for 2050 Man Hours
Fixed overheads:
Estimated at Rs.25,00,000 for 10,000 normal working hours.
Estimate the cost of Grinding Job and Calculate the Price to be fixed to attain a profit of
25% on Selling Price

Raw Materials 4,10,255

Wages
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Shop Floor 1: 600 Hours @ Rs. 52 Per Hour 31,200

Shop Floor 2: 400 Hours @ Rs. 87 Per Hour 34,800
Shop Floor 3: 200 Hours @ Rs. 68 Per Hour 13,600 79,600

Overheads
Shop Floor 1: 600 Hours @ Rs. 109 Per Hour 65,400
Shop Floor 2: 400 Hours @ Rs. 192 Per Hour 76,800
Shop Floor 3: 200 Hours @ Rs. 156 Per Hour 31,200 1,73,400

Fixed Overheads
( 600 + 400 + 200 = 1,200x 250) 3,00,000
Total Cost 9,63,255
Profit (25% = 1//4 on Sales = 1/3 on Cost) 3,21,085
Sales 12,84,340

Question 4
Caterpillar India Limited furnishes the following cost details
Rs. In Crores
Direct Materials 18,000
Direct Wages 15,000
Profit 12,180
Selling and Distribution Overheads 10,500
Administration Overheads 8,400
Factory Overheads 9,000
Caterpillar India Limited receives an order for a Casting job. It is estimated that direct
materials required will be Rs.24,00,000 and direct labour will cost Rs.15,00,000. To meet this
job order the company has to spend 5% and 8% more on their Administration and Distribution
Expenditure. Estimate the revenue for the company for this job order.

Solution

Cost Sheet
Particulars Amount

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Direct Material 18,000

Direct Wages 15,000
Prime Cost 33,000
Add :- Factory Over Heads: 9,000

Factory Cost 42,000

Add: Opening Stock of WIP
Less: Closing Stock of WIP
Works cost 42,000
Add:- Administration Over Heads:- 8,400

Cost of Production 50,400

Add: Opening stock of Finished Goods
Less: Closing stock of Finished Goods
Cost of Goods Sold 50,400
Add:- Selling and Distribution OH:- 10,500
Cost of Sales 60,900
Profit ( Balancing Value) 12,180
Sales 73,080

Working Notes
- Percentage of Factory Overheads on Direct Wages
Rs.9,000 / Rs.15,000 x 100 = 60%

- Percentage of Administration Overheads on Works Cost

Rs. 8,400 / Rs.42,000 x 100 = 20%

- Percentage of Selling & Distribution on Works Cost

Rs. 10,500 / Rs.42,000 x 100 = 25%

- Percentage of Profit on Cost of Sales

Rs. 12,180 / Rs.60,900 x 100 = 20%

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Cost Sheet for Casting Job Order

Particulars Amount
Direct Material 24,00,000
Direct Wages 15,00,000
Prime Cost 39,00,000
Add :- Factory Over Heads: 9,00,000
60% on 15,00,000
Factory Cost 48,00,000
Add: Opening Stock of WIP
Less: Closing Stock of WIP
Works cost 48,00,000
Add:- Administration Over Heads:- 10,08,000
( 20% on 48,00,000)
(9,60,000 x 105%)

Cost of Production 58,08,000

Add: Opening stock of Finished Goods
Less: Closing stock of Finished Goods
Cost of Goods Sold 58,08,000
Add:- Selling and Distribution OH:- 12,96,000
(25% on 48,00,000)
(12,00,000 x 108%)
Cost of Sales 71,04,000
Profit 14,20,800
(20% on 71,04,000)
Sales 85,24,800

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