COST SHEET AND TENDER 1. The following particulars have been etracte! fro" the boo#s of "anufacturing co"pan$ for the "onth of %ul$ &' '()* Stoc# of +aterial 1*,*&''( Stoc# of +aterial /1*,*&''( +aterial 0urchase! Drawing office Salar$ Counting House Salar$ Carriage on 0urchases Carriage on Sales Cash !iscount allowe! 4a! !ebts Repairs to 0lant +achiner$ 5 tools Rent Ra Rates 5 Taes 67 67actor$8 Rent Rates 5 Taes 6Office8 Traveling Epenses Travel avelin ing g Sal Salar arie iess 5 Co"" Co""is issi sion on 0ro!uctive 9ages Depreciation on 0lant 5 +achiner$ Depreciation on 7urniture Directors fees :eneral Charges :as 5 9ater Charges 6factor$8 :as 5 9ater 9ater Charges 6office8 Rs. /'' +anager;s Salaries)* 7actor$ Rs. 1'''' Office Rs. &'''
Rs. -,''' Rs. ('''' Rs. &'''' Rs. 23'' Rs. 1-''' Rs. &'' Rs. (1'' Rs. /-'' Rs. -,'' Rs. 1'3'' Rs. / /''' Rs. 1''' Rs. /1'' Rs. Rs. -' -'' ' Rs. 1-'''' Rs. ,1'' Rs. 3'' Rs. 3''' Rs. (''' Rs. 1(''
Through out the "onth 1''''' units were pro!uces an! sol!. There was no opening 5 closing stoc#. 0repare Cost Sheet showing the following)* 1. +aterial +aterial Consu"e! &. 0ri"e Cost /. 9or#s 9or#s Cost -. Cost of 0ro!uction (. Total Cost. &. The following !ata have been etracte! fro" the boo#s of +nits sol! Rs. &('''' +anag +anaging ing Direc Director torss re"une re"unerat ration ion is to be allott allotte! e! Rs. -''' -''' to factor$ factor$ Rs. &''' to office an! Rs. 3''' to selling !epart"ent. !epart"ent. 0repare Cost sheet /. The accounts of %.?. +anufacturer lt!. for the $ear en!ing on /1 st Dece"ber &''1 shows the following)* Stoc# of "aterial on 1 st %anu %anuar ar$ $ &'' &''1 1 Rs. Rs. 3, 3,&' &'' '
+aterial 0urchase! Rs. &(2''' 4a! !ebts Rs. 21'' Trave ravele ler; r;ss sal salar$ ar$ an! an! co"" co""is issi sion on Rs. Rs. 1', 1',' ' Depreciation on off office furniture Rs. -&' Rent Rent rate ratess an! an! insu insura ranc ncee 6fac 6facto tor$ r$88 Rs. Rs. 112 112'' '' 0ro!uctive wages Rs. 1,3-'' Directors fees Rs. -'' :eneral Epenses Rs. -,3' :as 5 9ater 6factor$8 Rs. 13' Traveling epenses Rs. &2-' Sales Rs. 3''''' +anager;s Salar$ Rs. 1(''' 6&
=n!irect wages Rs. 1'''' Electricit$ 6/<- factor$ B office8 Rs. -'''' A!vertise"ent Rs. &'''' 7actor$ epenses Rs. /-'''' Sales Co""ission Rs. (''' Rent 6&nits pro!uce! an! sol! Rs. 1'''' /'@ of salar$ belong to factor$ ('@ belong to office an! rest b elong to sales !epart"ent. 3. 7ro" the following figures prepare state"ent of cost an! profit for the "onth of Oct. 'Stoc# on 1st October &''-) Raw +aterial Rs. 3'3'' 7inishe! :oo!s Rs. /(2'' Stoc# on /1st October &''-)* Raw +aterial Rs. ,(''' 7inishe! :oo!s Rs. /'2'' st 9or# in 0rogress on 1 Oct. &''Rs. 1&(3'' On /1st Oct. &''- Rs. 1-&&'' 0urchase of Raw "aterial Rs. &(,'' Sale of finishe! :oo!s Rs. 1/-'''' Direct wages Rs. /,(''' 7actor$ epenses Rs. &1&('' Office an! a!"inistrative epenses Rs. 1'/-'' Selling an! !istribution epenses Rs. ,(''' Sale of scrap Rs. &3'' ,. The following infor"ation has been obtaine! fro" the recor!s of A4C co. for the "onth of +arch ;'/)* Cost of Raw +aterial on 1 st +arch ;'/ Rs. /'''' 0urchase of Raw +aterial Rs. -('''' 9ages pai! Rs. &/'''' 7actor$ overhea!s Rs. 2&''' Cost of wor# in progress on 1*/*'/ Rs. 1&''' Cost of Raw +aterial on /1*/*'/ Rs. &(''' Cost of wor# in progress on /1*/*'/ Rs. 1(''' Stoc# of finishe! goo!s on '1*/*'/ Rs. 3'''' Stoc# of finishe! goo!s on /1*/*'/ Rs. ((''' A!"inistration overhea!s Rs. /'''' Selling an! Distribution overhea!s Rs. &'''' Sales Rs. 2''''' 0repare Cost Sheet. . The following !etails have been obtaine! fro" the cost recor!s of Ro$al Co"pan$ lt!. 0repare Cost Sheet) Stoc# of Raw +aterial on 1 st Sept. 22 Rs. ,(''' Stoc# of Raw +aterial on /' th Sept. 22 Rs. 21('' Direct 9ages Rs. (&('' =n!irect 9ages Rs. &,(' 9or# in 0rogress 61st Sept. 228 Rs. &''' th 9or# in 0rogress 6/' Sept. 228 Rs. /(''' 0urchase of Raw +aterial Rs. 33''' Depreciation of 0lant 5 +achiner$ Rs. /('' 7actor$ Rent Rates an! Taes Rs. 1(''' Epenses on 0urchase Rs. 1('' Sales Rs. &11''' A!vertising Rs. /('' Carriage outwar! Rs. &('' Office Rent Rs. &('' Travelers wages an! Co""ission Rs. 3('' st Stoc# of 7inishe! goo!s 61 Sept. 228 Rs. (-''' Stoc# of 7inishe! goo!s 6/oth Sept. 228 Rs. /1'''
&
Cost Sheet and Tender 2. The following etracts relate to costing !epart"ent of a tra!er for the uarter en!ing on +arch &'''. Stoc# of Raw +aterial on 1*1*&''' Rs. 1'''' Stoc# of Raw +aterial on /1*/*&''' Rs. &&''' Stoc# of 7inishe! :oo!s on 1*1*&''' Rs. 13''' Stoc# of 7inishe! :oo!s on /1*/*&''' Rs. /&''' 9or#*in*progress on 1*1*&''' Rs. -'' 9or#*in*progress on /1*/*&''' Rs. 13''' Direct 9ages Rs. ,(''' =n!irect 9ages Rs. /'''' Carriage inwar! Rs. 1--' Carriage outwar! Rs. 1''' Sale of resi!ue 6Scrap8 Rs. &-' Direct Epenses Rs. &(''' A!vertising Rs. (''' Office Salar$ Rs. /('' +otive 0ower Rs. &(3' Au!it fees Rs. ('' 7actor$ Rent Rates 5 Taes Rs. /''' Office Rent Rates 5 Taes Rs. 1('' Establish"ent overhea!s Rs. &('' 7actor$ on Cost Rs. &'''' 0urchase Rs. 1&'''' Selling an! Distribution epenses Rs. ,''' 9arehouse epenses Rs. &''' 0repare Cost Sheet. 1'. Stoc# as on 1st April 1222)* Raw +aterial 7inishe! :oo!s 9or# in 0rogress Stoc# as on /1st +arch &''')* Raw +aterial 7inishe! :oo!s 9or# in 0rogress 0urchase of Raw +aterial Direct 9ages =n!irect 9ages 9or#s on Cost Office on Cost Selling an! Distribution overhea!s Sales 0repare state"ent of cost.
Rs. 1''''' Rs. ,1('' Rs. /1''' Rs. 1&/('' Rs. -&''' Rs. /-('' Rs. ''' Rs. ,'''' Rs. &('' Rs. /,''' Rs. 1/''' Rs. 1(''' Rs. &-'''
11. 7ollowing infor"ation is collecte! fro" the costing recor!s of factor$ Stoc# of Raw +aterial as on 1*1*2Rs. 13''' Stoc# of Raw +aterial as on /1*1*2- Rs. ,''' Stoc# of 7inishe! :oo!s as on 1*1*2- Rs. -('' Stoc# of 7inishe! :oo!s as on /1*1*2- Rs. ('' 0urchase of Raw +aterial Rs. (-''' Sales Rs. 1/'''' Direct 9ages Rs. &&''' =n!irect 9ages Rs. 1'' Rent of Office 4uil!ing Rs. /3'' Depreciation of Office furniture Rs. 1&'' Rent of factor$ buil!ing Rs. 3''' Carriage inwar! Rs. 1''' Carriage Outwar! Rs. -'' A!vertise"ent Epenses Rs. &-'' Depreciation of +achiner$ Rs. &''' Salar$ of office staff Rs. 1&''' Sales co""ission Rs. &'' +otive 0ower Rs. /('' 9or# in 0rogress as on 1*1*2Rs. 1'' 9or# in 0rogress as on /1*1*2Rs. --'' Direct Epenses Rs. 1,''
Prof. Anup Suchak,
ou are reuire! to prepare a Cost Sheet. 1&. 0repare a State"ent of Cost fro" the following infor"ation of Fipro +anufacturing co. for the $ear en!ing on /1 st +arch &''( 5 also fin! profit per unit. Opening Stoc#) Raw +aterial Rs. &&''' 7inishe! :oo!s Rs. 1(,''' 61(,' >nits8 9or# in 0rogress Rs. /'''' Closing Stoc#) Raw +aterial Rs. &1''' 7inishe! :oo!s Rs. 1&''' 61&' units8 9or# in 0rogress Rs. ('''' 0urchase Rs. 1,''' Carriage Rs. 1,'' Octroi !ut$ Rs. /&'' 9ages ) '''' abour hours G Rs. / per labour hour 9or#s Overhea!s G Rs. & per labour hour A!"inistration overhea!s &(@ of 9or#s Cost Selling overhea!s G Rs. &( per unit sol! >nits "anufacture! ,&(' units Selling 0rice Rs. 1(3.&( per unit. 1/. The Cost recor!s show the following epenses in respect of the pro!uction hel! !uring +a$ &''3. +aterials use! Rs. 3&3'' Direct labour charges Rs. ((-'' 9or#s overhea!s Rs. ,&''' Selling Epenses Rs. 2''' Establish"ent overhea!s Rs. &-''' 0repare a state"ent of cost an! calculate 1. Total Cost &. 0ercentage of 9or#s overhea!s to 0ri"e Cost /. 0ercentage of Establish"ent overhea!s to wor#s cost. -. 0ercentage of selling epenses to wor#s cost. 1-. The following etracts relate to costing !epart"ent of Sun Tra!ing Co. for the uarter en!ing on /'*'3*'/ 0urchase of Raw +aterial Rs. 1&'''' Rent Rates an! factor$ epenses Rs. -'''' Direct wages Rs. 1''''' Carriage inwar! Rs. 1--' Stoc# of Raw "aterial 1*-*'/ Rs. 1'''' Stoc# of 7inishe! :oo!s 1*-*'/ Rs. 13''' 61''' Tons8 Stoc# of Raw +aterial /'*3*'/ Rs. &&&-' Stoc# of 7inishe! :oo!s /'*3*'/ 6&''' Tons8 9or# in 0rogress on 1*-*'/ Rs. -'' 9or# in 0rogress on /'*3*'/ Rs. 13''' 7actor$ Overhea!s Rs. 1'''' Office Overhea!s Rs. ''' A!vertising Discount an! Selling Overhea!s was Re. 1 per ton sol!. Sales 1(''' tons for Rs. /''''' Ascertain Total Cost an! Net 0rofit. 1(. The following costing statistics relating to a co""o!it$ for si "onths en!e! on /'th %une &''/. 0urchase of Raw +aterial Rs. &&('' Direct 9ages Rs. &&/'' abour hour G Rs. 1' per labour hour Rent Rates =nsurance 6factor$8 Rs. ,'''' Carriage on purchase Rs. 3'' Stoc# on 1st %an &''1)* Raw +aterial Rs. ,&''' 7inishe! :oo!s 6,(' tons8 Rs. /''' Stoc# on /'th %une &''1)* Raw +aterial Rs. -1,'
/
Cost Sheet and Tender 7inishe! :oo!s 61('' Tons8 9or# in 0rogress on /'th %une &''/ Rs. /''' 9or# in 0rogress on 1st %anuar$ &''/ Rs. 2'' Sale of 7inishe! :oo!s Rs. (3&(' A!vertise"ent Discount allowe! an! selling epenses a"ounte! to Re '.&' per ton sol!. 1&''' tons of co""o!ities were pro!uce! !uring si "onths. 0repare Cost Sheet. 13. The following infor"ation relates to co""o!it$ for the $ear en!ing on /1*1&*'&. 0urchase of Raw +aterial Rs. 3'''' Direct 9ages Rs. ('''' Carriage inwar! Rs. 1''' Rent Rater taes of factor$ Rs. &'''' Other factor$ overhea!s -@ of 0ri"e Cost Stoc# on 1*1*'&) Raw +aterial Rs. 1'''' 9or# in 0rogress Rs. &-'' 7inishe! :oo!s 6&''' tons8 Rs. ''' Stoc# on /1*1&*'&) Raw +aterial Rs. 11''' 9or# in 0rogress Rs. '' 7inishe! :oo!s 6-''' tons8 Sale of 7inishe! :oo!s Rs. 1('''' A!vertise"ent Discount allowe! -' paise per ton sol!. /&''' tons of the co""o!it$ were pro!uce! !uring the perio!. 1,. The following figure relate to New Era lt!. 7or the $ear en!e! on /1st Dec. '1)* 0urchase of Raw +aterial Rs. /''''' Direct wages)* &&/'' labour hours G Rs. 1' per hour Rent Rates 5 =nsurance 67actor$8 Rs. ,'''' Carriage on purchases Rs. 3'' Stco# on 1*1*&''1) Raw +aterial Rs. ,&''' 7inishe! :oo!s 61''' units8 Rs. -'''' 9or# in 0rogress Rs. &&''' Stoc# on /1*1&*&''1) Raw +aterial Rs. ((3'' 7inishe! :oo!s 6&''' units8 9or# in 0rogress Rs. ('''' 7actor$ supervision charges Rs. ('''' Selling an! Distribution epenses Rs. / per unit sol! Sales Rs. 1'''' 0ro!uction 13''' units 0repare Cost Sheet. 1. +r. Ra#esh furnishes the following !ata relating to a "anufacturing of a stan!ar! pro!uct !uring Aug. ;'/ Raw +aterial Consu"e! Rs. 1(''' 9ages Rs. 2''' +achine hours wor#e! 2'' hrs +achine hour rate Rs. - per hour Office on Cost &'@ of wor#s cost Selling overhea!s (' paise per unit sol! >nits pro!uce! 1,1'' units >nits Sol! 13''' units G Rs. - per unit 12. 0repare Cost Sheet fro" the following) Raw +aterial Consu"e! Rs. -'''' Direct 9ages Rs. &-''' +achine hours wor#e! 2('' hours +achine hour rate Rs. - per hour Office on Cost &'@ of wor#s cost >nits pro!uce! &''''
Prof. Anup Suchak,
>nits Sol! 1''' units G Rs. 1' per unit &'. 0repare Cost Sheet fro" the following +aterial Rs. 3''''' abour Rs. /&'''' 9or#s on Cost Rs. 1'''' Office Epenses Rs. 1('''' Selling Overhea!s Rs. 1&'''' 2'@ of the output was sol! for Rs. 1-''''' &1. A "anufacturer starte! his pro!uction on 1st %an. &''/. =t was observe! that on /'th %une &''/ his p osition was as follows) +aterial Consu"e! Rs. 3'''' 9ages Rs. '''' 9or#s overhea!s ,(@ of 9ages Office overhea!s &'@ on 9or#s Cost Selling an! Distribution charges Rs. /-''' Sales 62'@ of the pro!uction8 Rs. /''''' 0repare a state"ent of Cost. &&. 0repare a state"ent of Cost an! 0rofit per "o!el sol! of a Tape recor!er +o!el A; +o!el 4; +aterial Rs. &,/'' Rs. 1'3' abour Rs. 1(3'' Rs. 3&2&' 9or#s overhea!s are charge! at '@ of abour Office overhea!s are charge! at 1(@ on 9or#s Cost The Selling price of both the tape recor!er is Rs. 1''' , A t$pe an! &3 4 t$pe Tape recor!ers were sol!. &/. 9or# out the Cost Sheet fro" the unit cost of pro!uction per ton of special paper "anufacture! b$ a paper "ill in %une &''/ fro" the following !ata) Direct +aterials) 0aper 0ulp)* ('' tons G Rs. ('' per ton Other +aterial) 1'' tons G Rs. /'' per ton Direct abour)* ' S#ille! labour G Rs. /' per !a$ for &( !a$s -' >ns#ille! labour G Rs. &' per !a$ for &( !a$s Direct Epenses)* Special Euip"ent Rs. /'''' Special D$es Rs. 1'''' 9or#s Overhea!s)* Fariable G 1''@ an! 7ie! G 3'@ on Direct 9ages A!"inistrative Overhea!s G 1'@ on 9or#s Cost Selling 5 Distribution Epenses 1(@ on 9or#s Cost -'' tons of Special 0aper were "anufacture! an! Rs. ''' was realiIe! fro" the sale of waste "aterial !uring the course of "anufacture. &-. 0repare Cost Sheet) Stoc# of Raw +aterial 6Opening8 Rs. 1&-''' Stoc# of Raw +aterial 6Closing8 Rs. ''' +aterial 0urchase! Rs. -&''' Defective +aterial Consu"e! Rs. 3''' Sale of E"pt$ Containers Rs. 1&''' Carriage on purchases Rs. ''' Cost of +aterial !estro$e! in rain Rs. (''' 7actor$ 9ages Rs. /'''' 7actor$ Overhea!s &'@ on 7actor$ 9ages Office overhea!s (@ on 7actor$ Cost 0rofit &'@ on Selling 0rice. &(. A4C lt!. =s "anufacturing transistor sets an! the following !etails are furnishe! in respects of its factor$ operation in the $ear &''& 9or# in 0rogress) 4eginning Closing +aterial Rs. 1'''' Rs. 1(''' abour Rs. 1&''' Rs. 1-'''
-
Cost Sheet and Tender 7actor$ Epenses Rs. 3''' Rs. ,''' . Rs. &''' Rs. /3''' Stoc# of Raw +aterial in the beginning Rs. '''' 0urchase of Raw +aterial Rs. -''''' Direct abour Rs. &'''' Stoc# of Raw +aterial at the en! Rs. 3'''' +anufacturing epenses Rs. (''' Office an! A!"inistration epenses Rs. (/''' Sets 0ro!uce! being 3''' 0repare State"ent of Cost. TENDER STATEMENT 1. In 2002, the accounts of company manufacturing motors cars isc!ose the fo!!o"ing particu!ars#$ Materia!s use Rs. %&,00,000 Direct '(erheas Rs. %),%0,000 *actory '(erheas Rs. 1+,)2,000 'ffice enera! E-penses Rs. ,+,%00 /ou are reuire to prepare a statement sho"ing the price at "hich the company shou! se!! its cars uring 200+ assuming#$ a That it is estimate that each car "i!! reuire Rs. 1,1%,000 of materia! an Rs. &,000 for "ages. 3 4ompany "ants to earn a profit of 205 on se!!ing price. 2. *rom the fo!!o"ing information prepare statement of 4ost an the 4ost of Tener of 6o3 No. 1 for "hich particu!ars of pre(ious year is as fo!!o"s# Materia! Rs. ,00,000 7ages Rs. &,00,000 7or8s on 4ost Rs. 1,00,000 'ffice '(erheas Rs. %9,000 The tener "ou! reuire materia! Rs. 1%,000 an !a3our Rs. ,000 an profit 295 on Tener :rice. +. The fo!!o"ing etai!s are a(ai!a3!e#$ Stoc8 of finishe goos +1$12$2000 Rs. 2,00 Stoc8 of Ra" Materia! +1$12$2000 Rs. ++,20 :urchase of Ra" Materia! Rs. ,9),200 :roucti(e 7ages Rs. 9,1%,0 Sa!e of *inishe oos Rs. 19,+),200 Stoc8 of finishe goos +0$%$2001 Rs. ,000 Stoc8 of Ra" Materia! +0$%$2001 Rs. +9,+%0 7or8s o(erheas Rs. 1,2),220 'ffice e-penses Rs. 0,1%1 The company is a3out to sen a tener for a !arge p!ant. The costing epartment estimates that the materia! reuire "ou! cost Rs. 92,000 an "ages Rs. +1,200. The Tener is to 3e mae at net profit 205 on se!!ing price. Sho" Tener Sheet. &. The fo!!o"ing etai!s are a(ai!a3!e from company;s 3oo8s# Stoc8 of Ra" Materia! 1$1$)) Rs. 12,00 Stoc8 of finishe goos 1$1$)) Rs. 2,000 :urchases uring the year Rs. 2,)2,000 :roucti(e "ages Rs. 1,),00 Stoc8 of Ra" Materia! +1$12$)) Rs. 1+,%00 Stoc8 of *inishe oos +1$12$)) Rs. +0,000 Sa!e of *inishe oos Rs. 9,)2,000 7or8s o(erheas charge Rs. &+,+% 'ffice an enera! E-penses Rs. +9,92& The company is a3out to sen a tener for !arge p!ant. The costing epartment estimates that the materia! reuire "ou! 3e Rs. 20,000 an "ages Rs. 12,000. Tener is to 3e mae at a net profit of 205 on se!!ing price. 7hat shou! 3e the amount of Tener<
Prof. Anup Suchak,
( 9. The fo!!o"ing etai!s are a(ai!a3!e# Stoc8 of Ra" materia! +1$12$)9 Rs. +0,000 :urchase of Ra" Materia! Rs. ,90,000 :roucti(e "ages Rs. %,00,000 Sa!e of *inishe oos Rs. 1%,+0,000 Stoc8 of Ra" Materia! +1$12$)% Rs. +2,000 7or8s on 4ost Rs. 1,20,000 'ffice on 4ost Rs. 1,%,1%0 The company has to gi(e the tener for the manufacture of machine in 1)). The estimates of the costing epartment inicate that the materia! reuire "ou! cost Rs. &0,000 an 7ages Rs. +0,000. 7or8s on cost an office on cost "ou! 3ear the same percentage "hich the "or8s on cost 3ears to "ages an office on cost 3ears to "or8s cost in the year 1))%. The tener is to 3e mae at a profit of 205 on se!!ing price. %. The fo!!o"ing etai!s are a(ai!a3!e from 3oo8s of =i>ay Manufacturing 4o.#$ Stoc8 of Ra" Materia! +1$12$)& Rs. ,900 Materia! :urchase Rs. 1,,900 :roucti(e 7ages Rs. 1,90,000 Sa!es Rs. &,%&,299 Stoc8 of Ra" materia! +1$12$)9 Rs. ,000 *actory '(erheas Rs. +0,000 'ffice o(erheas Rs. +%,00 4ompany "ants to su3mit a tener for a !arge machine "hich "i!! consume Materia! of Rs. )%,000 an 7ages of Rs. 0,000. The tener is to 3e mae at a profit of 205 on se!!ing price. 4a!cu!ate the tener price if the 5 of factory o(erheas to "ages an 5 of office o(erheas to 7or8s 4ost remains the same. . Mr. ? is a manufacturer of 4arpets. Durint !ast si- months ening +1$+$2000 the e-penses are#$ Stoc8 of finishe oos 1$10$)) Rs. 9%,000 Stoc8 of Ra" Materia! 1$10$)) Rs. 29,%00 :urchases Rs. 9,&,000 7ages Rs. +,),%00 Sa!e of *inishe oos Rs. 11,&,000 Stoc8 of *inishe oos +1$+$2000 Rs. %0,000 Stoc8 of Ra" Materia! +1$+$2000 Rs. 2,200 7or8s o(erheas Rs. ,92 'ffice an enera! 4harges Rs. 1,0& *rom the a3o(e information prepare a statement of 4ost ta8ing into consieration the fo!!o"ing information for a tener of +,000 carpets. The cost of Materia! is Rs. 10,000 an 7ages "i!! 3e Rs. %,000. 5 of 7or8s o(erheas to 7ages an 5 of office o(erheas to "or8s cost "i!! remain the same. Tener is to 3e mae at a profit of 205 on se!!ing price. . A manufacturer of Motor 4ar fins that in 1)) it costs him Rs. ,20,0%0 to manufacture 19 cars "hich he so! for Rs. 9,&00 each. The cost "as#$ Materia! Rs. 2,2,000 7ages Rs. +,2&,000 7or8s '(erheas Rs. &,%00 'ffice e-penses Rs. %9,&%0 *or 1))) he estimates Materia! Rs. 1,%00 an 7ages Rs. 1,00. :repare statement sho"ing profit he shou! ma8e per car if he reuces the se!!ing price 3y Rs. 200. ). 'n 1st 6anuary, 200+ a sto(e manufacturer esire to uote for a contract for the supp!y of 1000 sto(es. *rom the fo!!o"ing ata, prepare a statement sho"ing the price to 3e uote to gi(e the same percentage of net profit on turno(er as "as rea!i@e uring the !ast si- months ening on +1 st Dec. 2002. Stoc8 of Ra" Materia! 1$$2002 Rs. +9,000
Cost Sheet and Tender Stoc8 of Ra" Materia! +1$12$2002 Rs. &,)00 :urchase of Ra" Materia! Rs. 92,900 7ages Rs. )9,000 *actory E-penses Rs. 1,900 Esta3!ishment E-penses Rs. 10,000 4!osing Stoc8 of *inishe oos Rs. +9,000 Sa!es Rs. 1,),000 The num3er of Sto(es manufacture uring the si- months "ere &,000. The sto(es to 3e uote for are of uniform to those manufacture uring si- months. As from 1$1$0+ the cost of materia! "i!! increase 3y 195 an cost of factory !a3our increase 3y 105. 10. In respect of a factory the fo!!o"ing figures ha(e 3een o3taine for the year 200+#$ 4ost of Materia! Rs. %,00,000 7ages Rs. 9,00,000 *actory '(erheas Rs. +,00,000 Aministrati(e 4harges Rs. +,+%,000 Se!!ing 4harges Rs. 2,2&,000 Distri3ution 4harges Rs. 1,&0,000 :rofit Rs. &,20,000 A "or8 orer has 3een e-ecute in 200& an the fo!!o"ing e-penses ha(e 3een incurre# Materia! Rs. ,000 7ages Rs. 9,000 Assume that in 200&, the rate of factory o(erheas has gone up 3y 205. Distri3ution charges ha(e gone o"n 3y 105 an Se!!ing an Aministration 4harges each ha(e gone up 3y 12 B 5. At "hat price shou! the prouct 3e so!, so as to earn the same rate of profit on se!!ing price as in 200+< *actory o(erheas are 3ase on irect !a3our an Aministrati(e, Se!!ing Distri3ution charges on factory cost. 11. In respect of a factory the fo!!o"ing figures ha(e 3een o3taine for the year 2009#$ 4ost of Materia! Rs. +,00,000 7ages Rs. 2,90,000 *actory '(erheas Rs. 1,90,000 Aministrati(e 4harges Rs. 1,%,000 Se!!ing 4harges Rs. 1,12,000 Distri3ution 4harges Rs. 0,000 :rofit Rs. 2,10,000 A "or8 orer has 3een e-ecute in 200% an the fo!!o"ing e-penses ha(e 3een incurre# Materia! Rs. &,000 7ages Rs. 2,900 Assume that in 200&, the rate of factory o(erheas has gone up 3y 205. Distri3ution charges ha(e gone o"n 3y 105 an Se!!ing an Aministration 4harges each ha(e gone up 3y 12 B 5. At "hat price shou! the prouct 3e so!, so as to earn the same rate of profit on se!!ing price as in 2009< 12. Santosh Scooters Ct. Manufacture 19 scooters in the year 200& at a prouction cost of Rs. ++,&%,9 "hich he so! Rs. 2,000 each. Ana!ysis of cost is as fo!!o"s#$ Materia! Rs. 1&,+9,000 7ages Rs. 1%,%2,900 7or8s o(erheas Rs. 2,&),+9 Aministration E-penses Rs. 2,%,90 Se!!ing o(erheas Rs. +,90,000 Santosh Scooters intens to manufacture an se!! 200 scooters in 2009 3y reucing se!!ing price 3y Rs. 1,000 per scooter. /ou are reuire to estimate per scooter profit he may earn in 2009. eep the fo!!o"ing etai!s in min#$ 1. Materia! 4ost "i!! go up 3y Rs. +00 per scooter 2. 7ages "i!! go o"n 3y Rs. &00 per scooter
Prof. Anup Suchak,
+.
5 of "or8s on cost to "ages "i!! remain the same as "as in 200&. &. Aministrati(e o(erheas "i!! 3e reuce 3y Rs. 20 per scooter. 9. Se!!ing o(erheas per scooter "i!! 3e reuce 3y 295. 1+. The company has to su3mit a tener for 1,200 type"riters for the year 1))) an it is estimate that# 1. The :rice of Materia! "i!! rise 3y 205 on the pre(ious years !e(e! 2. 7ages rate "i!! rise 3y 95 +. Manufacturing charges "i!! increase in proportion to the com3ine cost of materia! an "ages. &. Se!!ing cost per unit "i!! remain unchange 9. 'ther e-penses "i!! remain unaffecte 3y the rise in output. :repare a statement sho"ing the price at "hich the type"riters to 3e manufacture in 1))) shou! 3e mar8ete so as to sho" profit of 105 on se!!ing price. The firm manufacture an so! 1,000 Type "riters in the year 1)) on "hich ate its Traing :rofit Coss AFc "as as fo!!o"s# :articu!ars Rs. :articu!ars Rs. 4ost of Sa!e 0,000 &,00,000 Materia! Direct 7ages 1,20,000 Manufacturin 90,000 g E-penses ross :rofit 1,90,000 &,00,000 &,00,000 Sa!ary %0,000 ross :rofit 1,90,000 Rent Ta-es 10,000 enera! E-p. 20,000 Se!!ing E-p. +0,000 Net :rofit +0,000 1,90,000 1,90,000 1&. *o!!o"ing is the Traing :rofit Coss AFc of a co. "hich manufactures 1,000 Rain 4oats uring the year 2000 :articu!ars Rs. :articu!ars Rs. Materia! 90,000 Sa!e 1,20,000 Direct 7ages 29,000 Manufacturin 19,000 g E-penses ross :rofit +0,000 1,20,000 1,20,000 Sa!ary ,000 ross :rofit +0,000 Rent Ta-es 2,000 enera! E-p. 12,000 Se!!ing E-p. 2,000 :ac8ing E-p. 1,000 Net :rofit 9,000 +0,000 +0,000 The 4ompany has to su3mit a tener for 900 Rain coats in 2001 an it is estimate that# G1 4ost of materia! "i!! go up 3y 205 an "ages 3y 105. G2 Manufacturing e-penses "i!! increase in com3ine proportion of materia! an "ages. G+ Se!!ing e-penses an pac8ing e-penses per unit "i!! remain same. G& 'ther e-penses "i!! remain unaffecte 3y the rise in output. :repare statement of Tener to yie! 205 profit on tener price. 19. The firm manufactures an so! 2000 4a!cu!ators in the year 1))). The 4ost structure "as#$ Materia! Rs. 1,%0,000 7ages Rs. 2,&0,000 Manufacturing e-penses Rs. 1,00,000 'ffice Staff Sa!ary Rs. 1,20,000 Rent, Ta-es an Insurance Rs. 20,000 enera! E-penses Rs. 19,000
3
Cost Sheet and Tender :ac8ing e-penses Rs. 29,000 Se!!ing e-penses Rs. %0,000 The 4ompany has to su3mit a tener for 1000 ca!cu!ators an it is estimate that# 1. The price of materia! "i!! rise 3y 295 an "ages 3y 105. 2. Manufacturing e-penses "i!! increase in proportion to the com3ine cost of materia! an "ages. +. Se!!ing an pac8ing e-penses per unit "i!! remain same. &. 'ther e-penses "i!! remain unaffecte 3y the rise in prouction. :repare a statement sho"ing the price of 1000 ca!cu!ators so as to sho" profit of 105 on se!!ing price. 1%. The fo!!o"ing figures ha(e 3een e-tracte from the recors of Rao Manufacturing 4o. for the year ;0+. /ou are reuire to prepare a 4ost Sheet. Traing an : C AFc :articu!ars Rs. :articu!ars Rs. Materia! 1,%%,90 Sa!e ,00,000 Direct 7ages 2,%+,290 Man. E-p. 1,&0,000 ross :rofit 2,00,000 ,00,000 ,00,000 Sa!ary &0,000 ross :rofit 2,00,000 Rent of office 22,000 Se!!ing E-p. +0,000 4arriage %,000 'ut"ar Tra(e!ing E-p. 2,000 enera! E-p. 20,000 Net :rofit 20,000 2,00,000 2,00,000 st A "or8 orer has 3een e-ecute from 1 Apri! 200+ an the e-penses are as fo!!o"s# Materia! Rs. 1),%9 7ages Rs. 2%,+29 *actory o(erheas 105 of "ages 'ffice o(erheas 105 of :rime 4ost At "hat price shou! the prouct 3e uote so as to earn the same rate of profit on se!!ing price as "as in pre(ious year. 1. *rom the fo!!o"ing information fin out# a. Materia! 4onsume, 3. :rime 4ost, c. 7or8s 4ost, . Tota! 4ost, e. 5 of "or8s on cost to "ages, f. 5 of enera! on cost to 7or8s 4ost. :articu!ars Rs. Stoc8 of Ra" Materia! +1$12$2000 +0,000 :urchase of Ra" Materia! ,90,000 :roucti(e 7ages %,00,000 Sa!e of finishe goos 1%,+0,000 Stoc8 of Ra" Materia! +1$12$2001 +2,000 7or8s on 4ost 1,20,000 'ffice on 4ost 1,&%,00 The company has to gi(e tener for manufacturing of a machine in 2002. The estimate of the costing epartment that the Materia! reuire "ou! cost Rs. &0,000 an 7ages "ou! cost Rs. 90,000. 7or8s on cost an 'ffice on cost "ou! 3ear the same percentage "hich the "or8s on cost 3ears to "ages an office on cost to "or8s cost in the year 2001. The tener is to 3e mae at a profit of 205 on the se!!ing price. 1. The fo!!o"ing figures ha(e 3een o3taine from the recors of Ra> Engineering 7or8s for the year ening on +1 st March 200& :articu!ars Rs. :articu!ars Rs. 'pening Stoc8 9,129 Sa!es 12,00,000 4!osing :urchases +,00,000 1,29,000 Stoc8
Prof. Anup Suchak,
7ages 4arriage Man. E-p. ross :rofit
+,)&,9 +0,000 2,10,000 +,00,000 1+,29,000 1+,29,000 'ffice Sa!aries %0,000 'ffice Rent ++,000 Se!!ing E-p. &9,000 4arriage 'ut. ),000 Tra(e!ing E-p. +,000 enera! E-p. +0,000 Net :rofit 1,20,000 +,00,000 +,00,000 7or8 'rer has 3een e-ecute on 1 st Apri! 200& an the e-penses are as fo!!o"s# Materia! Rs. 2),900 7ages Rs. +),900 *actory o(erheas 195 on "ages 'ffice o(erheas 105 on prime cost Se!!ing an Distri3ution E-p. 95 on 7or8s 4ost. At "hat price shou! the prouct 3e uote so as to earn the same rate of profit as it "as in pre(ious year on se!!ing price 1). A "ashing machine manufacturer so! 200 "ashing machine Rs. 20,000 uring 200+ Ana!ysis of 4ost is as fo!!o"s# Materia! Rs. 1&,00,000 7ages Rs. 19,00,000 7or8s o(erheas Rs. 2,90,000 'ffice o(erheas Rs. 2,00,000 Se!!ing o(erheas Rs. 1,90,000 The manufacturer has to su3mit a tener for 100 "ashing machine 3y reucing the se!!ing price 3y Rs. 1,000 per "ashing machine. /ou are reuire to estimate profit per "ashing machine, 8eeping the fo!!o"ing etai!s in min.# 1. Materia! cost "i!! go up 3y Rs. 290 per "ashing machine 2. 7ages "i!! go o"n 3y Rs. +00 per "ashing machine. +. 5 of "or8s on cost to "ages "i!! remain same as it "as in 200+ &. Aministrati(e e-penses "i!! 3e reuce 3y Rs. 29 per "ashing machine 9. Se!!ing o(erheas per "ashing machine "i!! 3e reuce 3y 295. 20. In respect of a factory, the fo!!o"ing information is a(ai!a3!e for the year 200&# 4ost of Materia! Rs. +,00,000 7ages Rs. 2,90,000 *actory o(erheas Rs. 1,90,000 Aministrati(e o(erheas Rs. 1,90,000 Se!!ing E-penses Rs. 1,12,000 Distri3ution E-penses Rs. 0,000 :rofit 205 on Tota! 4ost A "or8 orer has 3een e-ecute in 2009 an the fo!!o"ing e-penses ha(e incurre# Materia! Rs. 1%,000 7ages Rs. 10,000 Assuming in 2009 the rate of factory o(erheas ha(e gone up 3y 205, istri3ution charges ha(e gone o"n 3y 105, aministrati(e charges are Rs. ,)%& an se!!ing charges are Rs. 9,)%. At "hich price the "or8 orer shou! 3e uote so as to earn 205 profit on tota! cost< HH *actory o(erheas are 3ase on irect "ages an istri3ution charges on factory cost. 21. A manufacturer of scooter fins that in 200+ it costs him Rs. %,1%,000 to manufacture 200 Scooters "hich he so! at Rs. &,000 each. The cost "as# Ra" Materia! Rs. 2,00,000
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Cost Sheet and Tender 7ages Rs. +,00,000 *actory o(erheas Rs. %0,000 'ffice on 4ost Rs. 9%,000 *or the year 200&, he estimates that each scooter "i!! reuire materia! of Rs. 1,000 an 7ages Rs, 1,900. *actory o(erheas "i!! 3ear the same re!ation to irect "ages as in pre(ious year an percentage of office o(erheas to factory cost "i!! a!so 3e same. :repare statement sho"ing cost of prouction for 200+ an the profit he shou! ma8e per unit if he enhances the price of scooter 3y Rs. 0 o(er the price of !ast year. HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH
A!vance! Cost Accounts 1. Cha"a# Shoe 0olish Co"pan$ t!. "anufactures 4lac# an! 4rown 0olish in one stan!ar! siIe of tin retailing at Rs. 1' an! Rs. 1&' respectivel$. 7ollowing !ata is supplie! to $ou)* Rs. Direct +aterial )* 0olish ,/''' Tins &''' Direct 9ages &--'' 0ro!uction overhea!s /3,&'' A!"inistration an! Selling overhea!s 1&&-'' Sales for the $ear were)* 4lac# 1--'' tins 4rown 3''' tins The Opening an! Closing Stoc# of finishe! goo!s were)* !ac8 ro"n Opening Stoc# 6tins8 -' 13'' Closing Stoc# 6tins8 1'' 3'' The Opening stoc# of 4lac# an! 4rown polish was value! at its pro!uction costs of Rs. '.- per tin an! Rs. 3.- per tin respectivel$. The cost of raw "aterials for 4rown 0olish is 1'@ higher than that for 4lac# but there is no !ifference in the cost of tins. Direct 9ages for 4rown are @ higher than those for 4lac# polish an! pro!uction overhea!s are consi!ere! to var$ with !irect wages. A!"inistrative an! selling overhea!s are absorbe! at a unifor" rate per tin of polish. 0repare a state"ent showing the cost an! profit per tin of 0olish. &. Electronics t!. furnish the following infor"ation for 1'''' TF valves "anufacture! !uring the $ear &'',)* Rs. +aterials 2'''' Direct 9ages 3'''' 0ower an! consu"able stores 1&''' 7actor$ in!irect wages 1(''' ighting of factor$ (('' Defective wor# 6Cost of rectification8 /''' Clerical salaries an! "anage"ent Epenses //('' Selling epenses (('' Sale procee!s of scrap &''' 0lant repairs an! "aintenance an! !epreciation 11('' The net selling price was Rs. /1.3' per unit an! all units were sol!. As fro" 1 st %anuar$ &'' the selling price was re!uce! to Rs. /1 per unit. =t was esti"ate! that pro!uction coul! be Prof. Anup Suchak,
increase! in &'' b$ ('@ !ue to share capacit$. Rates for "aterials an! !irect wages will increase b$ 1'@. ou are reuire! to prepare)* a. Cost Sheet for the $ear &'', showing various ele"ents of cost per unit an! b. Esti"ate! cost an! profit for &'' assu"ing that 1(''' units will be pro!uce! an! sol! !uring the $ear an! factor$ overhea!s will be recovere! as a percentage of !irect wages an! office an! selling epenses as a percentage of wor#s cost.
Cost Sheet and Tender
etra Rs. &'''' for ever$ &'@ increase in capacit$ or a part thereof Each unit of raw "aterial $iel!s scrap which is sol! at &' paisa. =n &'11 the factor$ wor#e! at ('@ capacit$ for the first / "onths but it was epecte! to wor# at '@ capacit$ for the re"aining 2 "onths. During the first / "onths the selling price per unit was Rs. 1&. 9hat shoul! be the price in the re"aining 2 "onths to earn a total profit of Rs. &1'''
/. The +anaging Director of a s"all "anufacturing concern consults $ou as to the "ini"u" price at which he can sell the output of one of the !epart"ent of the co"pan$ which is inten!e! for "ass pro!uction in future. The co"pan$;s recor! show the following particulars for the !epart"ent for the past $ears)* 0ro!uction an! Sales 1'' units +aterials 1/''' Direct abour ,''' Direct Charges 6Fariable8 1''' 9or#s overhea!s ,''' Office overhea!s &'' Selling overhea!s /&'' 0rofit (''' . /2''' . ou ascertain that -'@ of the wor#s overhea!s fluctuate !irectl$ with pro!uction an! ,'@ of the selling overhea!s fluctuate with sales. =t is anticipate! that the !epart"ent woul! pro!uce ('' units per annu" an! that !irect labour charges per unit will be re!uce! b$ &'@ while fie! wor#s overhea!s will be increase! b$ Rs. /'''. Office overhea!s an! fie! selling overhea!s an! epecte! to show an increase of &(@ but otherwise no charges are anticipate!. Deter"ine the cost the profit for ('' units. -. 7ro" the following particulars prepare cost sheet of a 4ric# 9or#s in!icating cost per 1''' bric#s. Coal) (''' tons G Rs. ,.(' per ton 9ages Rs. ,(''' Ro$alties) Rs. '.,( per 1''' bric#s Depreciation of plant an! "achiner$ at 1'@ of capital outla$ Rs. 1('''' Re"oval of over bur!en at Rs. '.(' per 1''' bric#s. 9or#s overhea!s at 1'@ of 9ages an! Coal. Office overhea! at (@ of 9ages an! Coal 4ric#s "a!e)* 1'1(&&- 6Allow wastage 1.(@ of output8 4ric#s Sol!)* '''''' at Rs. &' per 1''' bric#s Opening Stoc# of 4ric#s &'''''' 4ric#s. Closing stoc# of bric#s) -'''''' 4ric#s. (. A factor$;s nor"al capacit$ is 1&'''' units per annu". The esti"ate! costs of pro!uction are as un!er) Direct +aterial Rs. - per unit Direct abour Rs. & per unit 6subJect to a "ini"u" of Rs. 1&''' per "onth =n!irect Epenses) 7ie! Rs. 13'''' p.a. Fariable Rs. & per unit Se"i*variable Rs. 3'''' p.a. up to ('@ capacit$ an! an Prof. Anup Suchak,
