Problems on Cost Sheet

1.    From the following particulars, prepare cost sheet for the production

of 5,000 units for the month of January 2002.

                                                                    Rs.                                                           Rs.

     Stock 1.1.2002                              10,000   Lighting:  Factory                  450

     Stock 31.12.2002                          12,000                        Office                   750

     Materials purchased                  25,000   Managers salary               3,500

     Carriage inwards                              500    Printing and stationery  1,000

      Direct wages                                  1,500   Telephone charges         1,250   

      Direct expenses                              700    General expenses               800

      Factory rent                                   1,000   Bad debts                                300

      Office rent                                      2,000   Salesman’s commission     650

      Deprn.:  Factory                            1,200   Advertising                         1,250

                       Office                                  600    Stock on 1.1.2002

     Repairs & maintenance                            WIP                                        2,000

                Factory                                     900     Finished goods                  3,000

                Office                                        600   Stock on 31.12.2002         

     Motive power                                  500     WIP                                        4,000

     Indirect wages                                 300     Finished goods                  5,000

2.    From the details given below for 1,500 units prepare a cost sheet and estimate the cost per unit for 5,000 units

                                                                                    Rs.

            Materials purchased                                     50,000

            Carriage inwards                                            2,000

            Other purchase expenses                               3,000

            Direct labour                                                 18,000

            Direct expenses                                            15,000

            Factory rent                                                    2,500

            Foreman’s salary                                            5,000

            Gas, power                                                      3,000

            Other manufacturing expenses                      1,700

            Factory lighting                                                  520

            Printing and stationery                                   1,200

            Postage and telegram                                       250

            Rent, rates and taxes                                         500

            General Manager’s salary                              7,000

            Carriage outwards                                          1,300

            Bad debts                                                           800

            Advertising expenses                                      2,500

            Salesman’s salary                                           6,000

            Opening stock:              Rs.

            Raw materials             7,000

            W.I.P                            3,000

            Finished goods            5,000                         15,000

            Closing stock:

            Raw materials             6,000

            W.I.P                            4,000

            Finished goods            4,000                         14,000

3.    From the following details prepare a cost sheet for the production of 5,000 units for the month of January 1998.

Rs

Rs

Stock on 1.1.’98                   10,000 Stock on 31.12.’98               12,000 Materials purchased           25,000 Carriage inwards                    500 Direct wages                         1,500 Direct expenses                      700 Factory rent                          1,000 Office rent                            2,000 Depreciation:  Factory                      1,200 Office              600 Repairs & maintenance: Factory            900 Office              600 Motive power                         500

Indirect wages                        300 Lighting:         Factory            450                        Office              750 Manager’s salary                 3,500 Printing and stationery        1,000 Telephone charges               1,250 General expenses                   800 Bad debts                               300 Salesman’s commission         650 Advertising                           1,250 Stock on 1.1.’98 WIP            2,000 Finished goods                      3,000 Stock on 31.12.’98 WIP        4,000 Finished goods                      5,000

Charge 25% profit on sales.