COST SHEET AND TENDER Material Purchased Rs.

2,59,000
Bad debts Rs. 9,100
1. The following particulars have been extracted from the books of Travelers salary and commission Rs. 10,780
manufacturing company for the month of July 2005:- Depreciation on office furniture Rs. 420
Stock of Material 1-7-2005 Rs. 47,000 Rent, rates and insurance (factory) Rs. 11,900
Stock of Material 31-7-2005 Rs. 50,000 Productive wages Rs. 1,76,400
Material Purchased Rs. 2,08,000 Directors fees Rs. 8,400
Drawing office Salary Rs. 9,600 General Expenses Rs. 4,760
Counting House Salary Rs. 14,000 Gas & Water (factory) Rs. 1,680
Carriage on Purchases Rs. 8,200 Traveling expenses Rs. 2,940
Carriage on Sales Rs. 5,100 Sales Rs. 6,00,000
Cash discount allowed Rs. 3,400 Managers Salary Rs. 15,000
Bad debts Rs. 4,700 (2/3 factory & 1/3 office)
Repairs to Plant, Machinery & tools Rs. 10,600 Depreciation on Plant & Machinery Rs. 18,200
Rent, Rates & Taxes (Factory) Rs. 3,000 Cash Discount Allowed Rs. 4,060
Rent, Rates & Taxes (Office) Rs. 1,000 Repairs to Plant and Machinery Rs. 6,230
Traveling Expenses Rs. 3,100 Carriage and Cartage outward Rs. 6,020
Traveling Salaries & Commission Rs. 8,400 Direct Expenses Rs. 10,010
Productive Wages Rs. 1,40,000 Rent, rates and insurance (office) Rs. 2,800
Depreciation on Plant & Machinery Rs. 7,100 Gas and Water (office) Rs. 560
Depreciation on Furniture Rs. 600 Stock of Material on 31st December 2001 Rs. 87,920
Directors fees Rs. 6,000 Prepare Statement of Cost.
General Charges Rs. 5,000
Gas & Water Charges (factory) Rs. 1,500 4. From the following particulars prepare Cost Sheet:-
Gas & Water Charges (office) Rs. 300 Purchase of Raw Material Rs. 1,20,000
Managers Salaries:- Wages :- Direct Rs. 1,50,000
Factory Rs. 10,000 Indirect Rs. 25,000
Office Rs. 2,000 Managers Salary Rs. 24,000 (He devotes 50% of his time to
factory, 20% to office and 30% to sales)
Through out the month 1,00,000 units were produces and sold. There Opening Stock : Raw Material Rs. 28,000
was no opening & closing stock. Prepare Cost Sheet showing the Work in Progress Rs. 14,000
following:- 1. Material Consumed 2. Prime Cost 3. Works Cost 4. Finished Goods Rs. 55,000
Cost of Production 5. Total Cost. Closing Stock: Raw Material Rs. 26,000
Work in Progress Rs. 14,000
2. The following data have been extracted from the books of M/s Finished Goods Rs. 62,000
Sunshine ltd. for the year 2002:- Depreciation: Furniture Rs. 6,000
Opening stock of Raw material Rs. 25,000 Machinery Rs. 34,000
Purchases of Raw Material Rs. 85,000 Factory Building Rs. 8,000
Closing stock of Raw Material Rs. 40,000 Office Building Rs. 2,000
Carriage inward Rs. 5,000 Carriage inward Rs. 4,000
Wages :- Direct Rs. 75,000 Carriage outward Rs. 7,000
Indirect Rs. 10,000 Octroi Rs. 3,000
Other Direct Charges Rs. 15,000 Royalties Rs. 12,000
Rent and Rates: Factory Rs. 5,000 Lighting: Factory Rs. 8,000
Office Rs. 500 Office Rs. 4,000
Indirect Consumption of Material Rs. 500 Sales Rs. 20,000
Depreciation: Plant Rs. 1,500 Haulage and fuel Rs. 6,000
Furniture Rs. 100 Salaries Paid: Factory foremen Rs. 36,000
Salaries : Office Rs. 2,500 Office staff Rs. 26,000
Salesmen Rs. 2,000 Salesmen Rs. 30,000
Other factory expenses Rs. 5,700 Motive power Rs. 15,000
Other office expenses Rs. 900 Bad debts Rs. 3,000
Managing Directors remuneration Rs. 12,000 Oil lubricants Rs. 4,000
Other Selling expenses Rs. 1,000 Advertisement Rs. 15,000
Traveling Expenses Rs. 1,100 Sale of scrap of raw material Rs. 8,000
Carriage and freight outward Rs. 1,000 Sale of Finished Goods Rs. 6,48,000
Advance income tax paid Rs. 15,000 5. The following figures are extracted for the Cost books of a
Advertisement Rs. 2,000 company for the year ending on 31st Dec. 2003. Prepare Cost Sheet
Sales : 1000 Units sold Rs. 2,50,000 Opening Stock of Raw Material Rs. 3,00,000
Managing Directors remuneration is to be allotted Rs. 4,000 to Closing stock of Raw Material Rs. 1,00,000
factory, Rs. 2,000 to office and Rs. 6,000 to selling department. Purchases of Raw Material Rs. 22,00,000
Prepare Cost sheet Depreciation of factory building Rs. 15,000
Salaries Rs. 3,00,000
3. The accounts of J.K. Manufacturer ltd. for the year ending on 31 st Direct Wages Rs. 5,00,000
December 2001 shows the following:- Finished goods warehouse expenses Rs. 20,000
Stock of material on 1st January 2001 Rs. 67,200 Office administration expenses Rs. 40,000
 2 Cost Sheet and Tender
Indirect wages Rs. 10,000 9. The following extracts relate to costing department of a trader for
Electricity (3/4 factory, office) Rs. 40,000 the quarter ending on March 2000.
Advertisement Rs. 20,000 Stock of Raw Material on 1-1-2000 Rs. 10,000
Factory expenses Rs. 3,40,000 Stock of Raw Material on 31-3-2000 Rs. 22,000
Sales Commission Rs. 5,000 Stock of Finished Goods on 1-1-2000 Rs. 16,000
Rent (2/3 factory, 1/3 office) Rs. 60,000 Stock of Finished Goods on 31-3-2000 Rs. 32,000
Expenses for participation in industrial fair Rs. 10,000 Work-in-progress on 1-1-2000 Rs. 4,800
Sales Rs. 40,00,000 Work-in-progress on 31-3-2000 Rs. 16,000
Units produced and sold Rs. 10,000 Direct Wages Rs. 75,000
30% of salary belong to factory, 50% belong to office and rest belong Indirect Wages Rs. 30,000
to sales department. Carriage inward Rs. 1,440
Carriage outward Rs. 1,000
6. From the following figures prepare statement of cost and profit for Sale of residue (Scrap) Rs. 240
the month of Oct. 04 Direct Expenses Rs. 25,000
Stock on 1st October 2004: Advertising Rs. 5,000
Raw Material Rs. 60,600 Office Salary Rs. 3,500
Finished Goods Rs. 35,900 Motive Power Rs. 2,560
Stock on 31st October 2004:- Audit fees Rs. 500
Raw Material Rs. 75,000 Factory Rent, Rates & Taxes Rs. 3,000
Finished Goods Rs. 30,900 Office Rent, Rates & Taxes Rs. 1,500
Work in Progress on 1st Oct. 2004 Rs. 1,25,600 Establishment overheads Rs. 2,500
On 31st Oct. 2004 Rs. 1,42,200 Factory on Cost Rs. 20,000
Purchase of Raw material Rs. 2,85,700 Purchase Rs. 1,20,000
Sale of finished Goods Rs. 13,40,000 Selling and Distribution expenses Rs. 7,000
Direct wages Rs. 3,75,000 Warehouse expenses Rs. 2,000
Factory expenses Rs. 2,12,500 Prepare Cost Sheet.
Office and administrative expenses Rs. 1,03,400
Selling and distribution expenses Rs. 75,000 10. Stock as on 1st April 1999:-
Sale of scrap Rs. 2,600 Raw Material Rs. 1,00,000
Finished Goods Rs. 71,500
7. The following information has been obtained from the records of Work in Progress Rs. 31,000
ABC co. for the month of March 03:- Stock as on 31st March 2000:-
Cost of Raw Material on 1st March 03 Rs. 30,000 Raw Material Rs. 1,23,500
Purchase of Raw Material Rs. 4,50,000 Finished Goods Rs. 42,000
Wages paid Rs. 2,30,000 Work in Progress Rs. 34,500
Factory overheads Rs. 92,000 Purchase of Raw Material Rs. 88,000
Cost of work in progress on 1-3-03 Rs. 12,000 Direct Wages Rs. 70,000
Cost of Raw Material on 31-3-03 Rs. 25,000 Indirect Wages Rs. 2,500
Cost of work in progress on 31-3-03 Rs. 15,000 Works on Cost Rs. 37,000
Stock of finished goods on 01-3-03 Rs. 60,000 Office on Cost Rs. 13,000
Stock of finished goods on 31-3-03 Rs. 55,000 Selling and Distribution overheads Rs. 15,000
Administration overheads Rs. 30,000 Sales Rs. 2,84,000
Selling and Distribution overheads Rs. 20,000 Prepare statement of cost.
Sales Rs. 9,00,000
Prepare Cost Sheet. 11. Following information is collected from the costing records of
factory
8. The following details have been obtained from the cost records of Stock of Raw Material as on 1-1-94 Rs. 16,000
Royal Company ltd. Prepare Cost Sheet: Stock of Raw Material as on 31-1-94 Rs. 7,000
Stock of Raw Material on 1st Sept. 99 Rs. 75,000 Stock of Finished Goods as on 1-1-94 Rs. 4,500
Stock of Raw Material on 30th Sept. 99 Rs. 91,500 Stock of Finished Goods as on 31-1-94 Rs. 5,800
Direct Wages Rs. 52,500 Purchase of Raw Material Rs. 54,000
Indirect Wages Rs. 2,750 Sales Rs. 1,30,000
Work in Progress (1st Sept. 99) Rs. 28,000 Direct Wages Rs. 22,000
Work in Progress (30th Sept. 99) Rs. 35,000 Indirect Wages Rs. 1,800
Purchase of Raw Material Rs. 66,000 Rent of Office Building Rs. 3,600
Depreciation of Plant & Machinery Rs. 3,500 Depreciation of Office furniture Rs. 1,200
Factory Rent, Rates and Taxes Rs. 15,000 Rent of factory building Rs. 6,000
Expenses on Purchase Rs. 1,500 Carriage inward Rs. 1,000
Sales Rs. 2,11,000 Carriage Outward Rs. 400
Advertising Rs. 3,500 Advertisement Expenses Rs. 2,400
Carriage outward Rs. 2,500 Depreciation of Machinery Rs. 2,000
Office Rent Rs. 2,500 Salary of office staff Rs. 12,000
Travelers wages and Commission Rs. 6,500 Sales commission Rs. 2,800
Stock of Finished goods (1st Sept. 99) Rs. 54,000 Motive Power Rs. 3,500
Stock of Finished goods (3oth Sept. 99) Rs. 31,000 Work in Progress as on 1-1-94 Rs. 8,100
Work in Progress as on 31-1-94 Rs. 4,400
Direct Expenses Rs. 1,700
Prof. Anup Suchak,
 3 Cost Sheet and Tender
You are required to prepare a Cost Sheet. Finished Goods (1500 Tons) ?
Work in Progress on 30th June 2003 Rs. 3,000
12. Prepare a Statement of Cost from the following information of Work in Progress on 1st January 2003 Rs. 900
Vipro Manufacturing co. for the year ending on 31 st March 2005 & Sale of Finished Goods Rs. 56,250
also find profit per unit. Advertisement, Discount allowed and selling expenses amounted to
Opening Stock: Raw Material Rs. 22,000 Re 0.20 per ton sold.
Finished Goods Rs. 1,57,000 12,000 tons of commodities were produced during six months.
(1570 Units) Prepare Cost Sheet.
Work in Progress Rs. 30,000
Closing Stock: Raw Material Rs. 21,000 16. The following information relates to commodity for the year
Finished Goods Rs. 1,82,000 ending on 31-12-02.
(1820 units) Purchase of Raw Material Rs. 60,000
Work in Progress Rs. 50,000 Direct Wages Rs. 50,000
Purchase Rs. 1,78,000 Carriage inward Rs. 1,000
Carriage Rs. 17,800 Rent, Rater, taxes of factory Rs. 20,000
Octroi duty Rs. 3,200 Other factory overheads 4% of Prime Cost
Wages : 80,000 Labour hours @ Rs. 3 per labour hour Stock on 1-1-02:
Works Overheads @ Rs. 2 per labour hour Raw Material Rs. 10,000
Administration overheads 25% of Works Cost Work in Progress Rs. 2,400
Selling overheads @ Rs. 25 per unit sold Finished Goods (2,000 tons) Rs. 8,000
Units manufactured 7250 units Stock on 31-12-02:
Selling Price Rs. 156.25 per unit. Raw Material Rs. 11,000
Work in Progress Rs. 8,800
13. The Cost records show the following expenses in respect of the Finished Goods (4000 tons) ?
production held during May 2006. Sale of Finished Goods Rs. 1,50,000
Materials used Rs. 62,600 Advertisement, Discount allowed 40 paise per ton sold. 32000 tons of
Direct labour charges Rs. 55,400 the commodity were produced during the period.
Works overheads Rs. 72,000
Selling Expenses Rs. 9,000 17. The following figure relate to New Era ltd. For the year ended on
Establishment overheads Rs. 24,000 31st Dec. 01:-
Prepare a statement of cost and calculate 1. Total Cost Purchase of Raw Material Rs. 3,00,000
2. Percentage of Works overheads to Prime Cost Direct wages:- 22,300 labour hours @ Rs. 10 per hour
3. Percentage of Establishment overheads to works cost. 4. Rent, Rates & Insurance (Factory) Rs. 70,000
Percentage of selling expenses to works cost. Carriage on purchases Rs. 8,600

14. The following extracts relate to costing department of Sun Stcok on 1-1-2001:
Trading Co. for the quarter ending on 30-06-03 Raw Material Rs. 72,000
Purchase of Raw Material Rs. 1,20,000 Finished Goods (1,000 units) Rs. 40,000
Rent Rates and factory expenses Rs. 40,000 Work in Progress Rs. 22,000
Direct wages Rs. 1,00,000 Stock on 31-12-2001:
Carriage inward Rs. 1,440 Raw Material Rs. 55,600
Stock of Raw material 1-4-03 Rs. 10,000 Finished Goods (2,000 units) ?
Stock of Finished Goods 1-4-03 Rs. 16,000 Work in Progress Rs. 50,000
(1,000 Tons) Factory supervision charges Rs. 50,000
Stock of Raw Material 30-6-03 Rs. 22,240 Selling and Distribution expenses Rs. 3 per unit sold
Stock of Finished Goods 30-6-03 ? Sales Rs. 8,10,000
(2,000 Tons) Production 16,000 units
Work in Progress on 1-4-03 Rs. 4,800 Prepare Cost Sheet.
Work in Progress on 30-6-03 Rs. 16,000
Factory Overheads Rs. 10,000 18. Mr. Rakesh furnishes the following data relating to a
Office Overheads Rs. 8,000 manufacturing of a standard product during Aug. 03
Advertising, Discount and Selling Overheads was Re. 1 per ton Raw Material Consumed Rs. 15,000
sold. Sales 15,000 tons for Rs. 3,00,000 Wages Rs. 9,000
Ascertain Total Cost and Net Profit. Machine hours worked 900 hrs
Machine hour rate Rs. 4 per hour
15. The following costing statistics relating to a commodity for six Office on Cost 20% of works cost
months ended on 30th June 2003. Selling overheads 50 paise per unit sold
Purchase of Raw Material Rs. 22,500 Units produced 17,100 units
Direct Wages Rs. 22,300 Units Sold 16,000 units @ Rs. 4 per unit
Labour hour @ Rs. 10 per labour hour
Rent Rates Insurance (factory) Rs. 70,000 19. Prepare Cost Sheet from the following:
Carriage on purchase Rs. 8,600 Raw Material Consumed Rs. 40,000
Stock on 1st Jan 2001:- Direct Wages Rs. 24,000
Raw Material Rs. 72,000 Machine hours worked 9,500 hours
Finished Goods (750 tons) Rs. 3,000 Machine hour rate Rs. 4 per hour
Stock on 30th June 2001:- Office on Cost 20% of works cost
Raw Material Rs. 4,170 Units produced 20,000
Prof. Anup Suchak,
 4 Cost Sheet and Tender
Units Sold 18,000 units @ Rs. 10 per unit Factory Expenses Rs. 6,000 Rs. 7,000 .
Rs. 28,000 Rs. 36,000
20. Prepare Cost Sheet from the following Stock of Raw Material in the beginning Rs. 80,000
Material Rs. 6,00,000 Purchase of Raw Material Rs. 4,00,000
Labour Rs. 3,20,000 Direct Labour Rs. 2,80,000
Works on Cost Rs. 1,80,000 Stock of Raw Material at the end Rs. 60,000
Office Expenses Rs. 1,50,000 Manufacturing expenses Rs. 85,000
Selling Overheads Rs. 1,20,000 Office and Administration expenses Rs. 53,000
90% of the output was sold for Rs. 14,00,000 Sets Produced being 6,000
Prepare Statement of Cost.
21. A manufacturer started his production on 1 st Jan. 2003. It was
observed that on 30th June 2003, his position was as follows: TENDER STATEMENT
Material Consumed Rs. 60,000
Wages Rs. 80,000 1. In 2002, the accounts of company manufacturing motors cars
Works overheads 75% of Wages disclosed the following particulars:-
Office overheads 20% on Works Cost Materials used Rs. 64,00,000
Selling and Distribution charges Rs. 34,000 Direct Overheads Rs. 69,60,000
Sales (90% of the production) Rs. 3,00,000 Factory Overheads Rs. 13,92,000
Prepare a statement of Cost. Office General Expenses Rs. 7,37,600
You are required to prepare a statement showing the price at
22. Prepare a statement of Cost and Profit per model sold of a Tape which the company should sell its cars during 2003 assuming:-
recorder a) That it is estimated that each car will require Rs. 1,16,000 of
Model A Model B material and Rs. 48,000 for wages.
Material Rs. 27,300 Rs. 1,08,680 b) Company wants to earn a profit of 20% on selling price.
Labour Rs. 15,600 Rs. 62,920
Works overheads are charged at 80% of Labour 2. From the following information prepare statement of Cost and
Office overheads are charged at 15% on Works Cost the Cost of Tender of Job No. 1 for which particulars of previous
The Selling price of both the tape recorder is Rs. 1,000 year is as follows:
78 A type and 286 B type Tape recorders were sold. Material Rs. 8,00,000
23. Work out the Cost Sheet from the unit cost of production per ton Wages Rs. 4,00,000
of special paper manufactured by a paper mill in June 2003 from the Works on Cost Rs. 1,00,000
following data: Office Overheads Rs. 65,000
Direct Materials: The tender would require material Rs. 16,000 and labour Rs.
Paper Pulp:- 500 tons @ Rs. 500 per ton 8,000 and profit 25% on Tender Price.
Other Material: 100 tons @ Rs. 300 per ton
Direct Labour:- 3. The following details are available:-
80 Skilled labour @ Rs. 30 per day for 25 days Stock of finished goods 31-12-2000 Rs. 72,800
40 Unskilled labour @ Rs. 20 per day for 25 days Stock of Raw Material 31-12-2000 Rs. 33,280
Direct Expenses:- Purchase of Raw Material Rs. 7,59,200
Special Equipment Rs. 30,000 Productive Wages Rs. 5,16,880
Special Dyes Rs. 10,000 Sale of Finished Goods Rs. 15,39,200
Works Overheads:- Stock of finished goods 30-6-2001 Rs. 78,000
Variable @ 100% and Fixed @ 60% on Direct Wages Stock of Raw Material 30-6-2001 Rs. 35,360
Administrative Overheads @ 10% on Works Cost Works overheads Rs. 1,29,220
Selling & Distribution Expenses 15% on Works Cost Office expenses Rs. 70,161
400 tons of Special Paper were manufactured and Rs. 8,000 was The company is about to send a tender for a large plant. The
realized from the sale of waste material during the course of costing department estimates that the material required would
manufacture. cost Rs. 52,000 and wages Rs. 31,200. The Tender is to be made at
net profit 20% on selling price. Show Tender Sheet.
24. Prepare Cost Sheet:
Stock of Raw Material (Opening) Rs. 1,24,000 4. The following details are available from companys books:
Stock of Raw Material (Closing) Rs. 88,000 Stock of Raw Material 1-1-99 Rs. 12,800
Material Purchased Rs. 4,28,000 Stock of finished goods 1-1-99 Rs. 28,000
Defective Material Consumed Rs. 6,000 Purchases during the year Rs. 2,92,000
Sale of Empty Containers Rs. 12,000 Productive wages Rs. 1,98,800
Carriage on purchases Rs. 8,000 Stock of Raw Material 31-12-99 Rs. 13,600
Cost of Material destroyed in rain Rs. 5,000 Stock of Finished Goods 31-12-99 Rs. 30,000
Factory Wages Rs. 30,000 Sale of Finished Goods Rs. 5,92,000
Factory Overheads 20% on Factory Wages Works overheads charged Rs. 43,736
Office overheads 5% on Factory Cost Office and General Expenses Rs. 35,524
Profit 20% on Selling Price. The company is about to send a tender for large plant. The
costing department estimates that the material required would
25. ABC ltd. Is manufacturing transistor sets and the following details be Rs. 20,000 and wages Rs. 12,000. Tender is to be made at a net
are furnished in respects of its factory operation in the year 2002 profit of 20% on selling price. What should be the amount of
Work in Progress: Beginning Closing Tender?
Material Rs. 10,000 Rs. 15,000
Labour Rs. 12,000 Rs. 14,000
Prof. Anup Suchak,
 5 Cost Sheet and Tender
Stock of Raw Material 31-12-2002 Rs. 4,900
5. The following details are available: Purchase of Raw Material Rs. 52,500
Stock of Raw material 31-12-95 Rs. 30,000 Wages Rs. 95,000
Purchase of Raw Material Rs. 7,50,000 Factory Expenses Rs. 17,500
Productive wages Rs. 6,00,000 Establishment Expenses Rs. 10,000
Sale of Finished Goods Rs. 16,30,000 Closing Stock of Finished Goods Rs. 35,000
Stock of Raw Material 31-12-96 Rs. 32,000 Sales Rs. 1,89,000
Works on Cost Rs. 1,20,000 The number of Stoves manufactured during the six months were
Office on Cost Rs. 1,76,160 4,000. The stoves to be quoted for are of uniform to those
The company has to give the tender for the manufacture of manufactured during six months. As from 1-1-03 the cost of
machine in 1997. The estimates of the costing department material will increase by 15% and cost of factory labour increase
indicate that the material required would cost Rs. 40,000 and by 10%.
Wages Rs. 30,000. Works on cost and office on cost would bear
the same percentage which the works on cost bears to wages and 10. In respect of a factory the following figures have been
office on cost bears to works cost in the year 1996. The tender is obtained for the year 2003:-
to be made at a profit of 20% on selling price. Cost of Material Rs. 6,00,000
Wages Rs. 5,00,000
6. The following details are available from books of Vijay Factory Overheads Rs. 3,00,000
Manufacturing Co.:- Administrative Charges Rs. 3,36,000
Stock of Raw Material 31-12-94 Rs. 7,500 Selling Charges Rs. 2,24,000
Material Purchased Rs. 1,87,500 Distribution Charges Rs. 1,40,000
Productive Wages Rs. 1,50,000 Profit Rs. 4,20,000
Sales Rs. 4,64,255 A work order has been executed in 2004 and the following
Stock of Raw material 31-12-95 Rs. 8,000 expenses have been incurred:
Factory Overheads Rs. 30,000 Material Rs. 8,000 & Wages Rs. 5,000
Office overheads Rs. 36,700 Assume that in 2004, the rate of factory overheads has gone up
Company wants to submit a tender for a large machine which by 20%. Distribution charges have gone down by 10% and
will consume Material of Rs. 96,000 and Wages of Rs. 80,000. The Selling and Administration Charges each have gone up by 12
tender is to be made at a profit of 20% on selling price. Calculate %.
the tender price if the % of factory overheads to wages and % of At what price should the product be sold, so as to earn the same
office overheads to Works Cost remains the same. rate of profit on selling price as in 2003? Factory overheads are
based on direct labour and Administrative, Selling & Distribution
7. Mr. X is a manufacturer of Carpets. Durint last six months charges on factory cost.
ending 31-3-2000 the expenses are:-
Stock of finished Goods 1-10-99 Rs. 56,000 11. In respect of a factory the following figures have been
Stock of Raw Material 1-10-99 Rs. 25,600 obtained for the year 2005:-
Purchases Rs. 5,84,000 Cost of Material Rs. 3,00,000
Wages Rs. 3,97,600 Wages Rs. 2,50,000
Sale of Finished Goods Rs. 11,84,000 Factory Overheads Rs. 1,50,000
Stock of Finished Goods 31-3-2000 Rs. 60,000 Administrative Charges Rs. 1,68,000
Stock of Raw Material 31-3-2000 Rs. 27,200 Selling Charges Rs. 1,12,000
Works overheads Rs. 87,572 Distribution Charges Rs. 70,000
Office and General Charges Rs. 71,048 Profit Rs. 2,10,000
From the above information prepare a statement of Cost taking A work order has been executed in 2006 and the following
into consideration the following information for a tender of 3,000 expenses have been incurred:
carpets. The cost of Material is Rs. 10,000 and Wages will be Rs. Material Rs. 4,000 & Wages Rs. 2,500
6,000. % of Works overheads to Wages and % of office overheads Assume that in 2004, the rate of factory overheads has gone up
to works cost will remain the same. Tender is to be made at a by 20%. Distribution charges have gone down by 10% and
profit of 20% on selling price. Selling and Administration Charges each have gone up by 12
%.
8. A manufacturer of Motor Car finds that in 1998 it costs him At what price should the product be sold, so as to earn the same
Rs. 7,20,060 to manufacture 175 cars which he sold for Rs. 5,400 rate of profit on selling price as in 2005?
each. The cost was:-
12. Santosh Scooters Ltd. Manufactured 175 scooters in the year
Material Rs. 2,82,000
2004 at a production cost of Rs. 33,46,875 which he sold @ Rs.
Wages Rs. 3,24,000
27,000 each. Analysis of cost is as follows:-
Works Overheads Rs. 48,600
Material Rs. 14,35,000
Office expenses Rs. 65,460
Wages Rs. 16,62,500
For 1999 he estimates Material Rs. 1,600 and Wages Rs. 1,800.
Works overheads Rs. 2,49,375
Prepare statement showing profit he should make per car if he
Administration Expenses Rs. 2,67,750
reduces the selling price by Rs. 200.
Selling overheads Rs. 3,50,000
Santosh Scooters intends to manufacture and sell 200 scooters in
9. On 1st January, 2003 a stove manufacturer desired to quote for
2005 by reducing selling price by Rs. 1,000 per scooter. You are
a contract for the supply of 1000 stoves. From the following data,
required to estimate per scooter profit he may earn in 2005. Keep
prepare a statement showing the price to be quoted to give the
the following details in mind:-
same percentage of net profit on turnover as was realized during
1. Material Cost will go up by Rs. 300 per scooter
the last six months ending on 31st Dec. 2002.
2. Wages will go down by Rs. 400 per scooter
Stock of Raw Material 1-7-2002 Rs. 35,000
Prof. Anup Suchak,
 6 Cost Sheet and Tender
3. % of works on cost to wages will remain the same as Packing expenses Rs. 25,000
was in 2004. Selling expenses Rs. 60,000
4. Administrative overheads will be reduced by Rs. 20 per The Company has to submit a tender for 1000 calculators and it
scooter. is estimated that:
5. Selling overheads per scooter will be reduced by 25%. 1. The price of material will rise by 25% and wages by 10%.
2. Manufacturing expenses will increase in proportion to the
13. The company has to submit a tender for 1,200 typewriters for
combined cost of material and wages.
the year 1999 and it is estimated that:
3. Selling and packing expenses per unit will remain same.
1. The Price of Material will rise by 20% on the previous years
4. Other expenses will remain unaffected by the rise in
level
production.
2. Wages rate will rise by 5%
Prepare a statement showing the price of 1000
3. Manufacturing charges will increase in proportion to the
calculators so as to show profit of 10% on selling price.
combined cost of material and wages.
4. Selling cost per unit will remain unchanged
16. The following figures have been extracted from the records of
5. Other expenses will remain unaffected by the rise in output.
Rao Manufacturing Co. for the year 03. You are required to
Prepare a statement showing the price at which the typewriters
prepare a Cost Sheet.
to be manufactured in 1999 should be marketed so as to show
Trading and P & L A/c
profit of 10% on selling price. The firm manufactured and sold
1,000 Type writers in the year 1998 on which date its Trading & Particulars Rs. Particulars Rs.
Profit & Loss A/c was as follows: Material 1,66,750 Sale 8,00,000
Particulars Rs. Particulars Rs. Direct Wages 2,63,250
Man. Exp. 1,40,000
Cost of Sale
80,000 4,00,000 Gross Profit 2,00,000
Material
Direct Wages 1,20,000 8,00,000 8,00,000
Manufacturin Salary 40,000 Gross Profit 2,00,000
50,000 Rent of office 22,000
g Expenses
Gross Profit 1,50,000 Selling Exp. 30,000
4,00,000 4,00,000 Carriage
6,000
Outward
Salary 60,000 Gross Profit 1,50,000
Traveling Exp. 2,000
Rent & Taxes 10,000
General Exp. 20,000
General Exp. 20,000
Net Profit 20,000
Selling Exp. 30,000
Net Profit 30,000 2,00,000 2,00,000
1,50,000 1,50,000 A work order has been executed from 1 st April 2003 and the
expenses are as follows:
14. Following is the Trading & Profit & Loss A/c of a co. which
Material Rs. 19,675 Wages Rs. 26,325
manufactures 1,000 Rain Coats during the year 2000
Factory overheads 10% of wages
Particulars Rs. Particulars Rs.
Office overheads 10% of Prime Cost
Material 50,000 Sale 1,20,000
At what price should the product be quoted so as to
Direct Wages 25,000
earn the same rate of profit on selling price as was in previous
Manufacturin
15,000 year.
g Expenses
Gross Profit 30,000 17. From the following information find out:
1,20,000 1,20,000 a. Material Consumed, b. Prime Cost, c. Works Cost, d. Total
Salary 8,000 Gross Profit 30,000 Cost, e. % of works on cost to wages, f. % of General on cost to
Rent & Taxes 2,000 Works Cost.
General Exp. 12,000 Particulars Rs.
Selling Exp. 2,000 Stock of Raw Material 31-12-2000 30,000
Packing Exp. 1,000 Purchase of Raw Material 7,50,000
Net Profit 5,000 Productive Wages 6,00,000
30,000 30,000 Sale of finished goods 16,30,000
The Company has to submit a tender for 500 Rain coats in 2001 Stock of Raw Material 31-12-2001 32,000
and it is estimated that: Works on Cost 1,20,000
(1) Cost of material will go up by 20% and wages by 10%. (2) Office on Cost 1,46,800
Manufacturing expenses will increase in combined proportion of The company has to give tender for manufacturing of a
material and wages. (3) Selling expenses and packing expenses machine in 2002. The estimate of the costing department that the
per unit will remain same. (4) Other expenses will remain Material required would cost Rs. 40,000 and Wages would cost
unaffected by the rise in output. Rs. 50,000. Works on cost and Office on cost would bear the same
Prepare statement of Tender to yield 20% profit on tender price. percentage which the works on cost bears to wages and office on
cost to works cost in the year 2001. The tender is to be made at a
15. The firm manufactures and sold 2000 Calculators in the year profit of 20% on the selling price.
1999. The Cost structure was:-
18. The following figures have been obtained from the records of
Material Rs. 1,60,000
Raj Engineering Works for the year ending on 31st March 2004
Wages Rs. 2,40,000
Particulars Rs. Particulars Rs.
Manufacturing expenses Rs. 1,00,000
Opening Stock 75,125 Sales 12,00,000
Office Staff Salary Rs. 1,20,000
Closing
Rent, Taxes and Insurance Rs. 20,000 Purchases 3,00,000 1,25,000
Stock
General Expenses Rs. 15,000
Prof. Anup Suchak,
 7 Cost Sheet and Tender
Wages 3,94,875 Wages Rs. 3,00,000
Carriage 30,000 Factory overheads Rs. 60,000
Man. Exp. 2,10,000 Office on Cost Rs. 56,000
Gross Profit 3,00,000 For the year 2004, he estimates that each scooter will require
13,25,000 13,25,000 material of Rs. 1,000 and Wages Rs, 1,500. Factory overheads
Office Salaries 60,000 will bear the same relation to direct wages as in previous year
Office Rent 33,000 and percentage of office overheads to factory cost will also be
Selling Exp. 45,000 same.
Carriage Out. 9,000 Prepare statement showing cost of production for 2003 and the
Traveling Exp. 3,000 profit he should make per unit if he enhances the price of scooter
General Exp. 30,000 by Rs. 80 over the price of last year.
Net Profit 1,20,000
3,00,000 3,00,000 ********************************************
Work Order has been executed on 1st April 2004 and the expenses Advanced Cost Accounts
are as follows: 1. Chamak Shoe Polish Company Ltd. manufactures Black
Material Rs. 29,500 Wages Rs. 39,500 and Brown Polish in one standard size of tin retailing at Rs.
Factory overheads 15% on wages 108 and Rs. 120 respectively. Following data is supplied to
Office overheads 10% on prime cost
Selling and Distribution Exp. 5% on Works Cost.
you:-
At what price should the product be quoted so as to earn the Rs.
same rate of profit as it was in previous year on selling price Direct Material :-
Polish 7,38,000
19. A washing machine manufacturer sold 200 washing machine Tins 2,88,000
@ Rs. 20,000 during 2003 Direct Wages 2,44,800
Analysis of Cost is as follows: Production overheads 3,67,200
Material Rs. 14,00,000 Administration and Selling overheads 1,22,400
Wages Rs. 15,00,000 Sales for the year were:-
Works overheads Rs. 2,50,000
Black 14,400 tins Brown 6,000 tins
Office overheads Rs. 2,00,000
Selling overheads Rs. 1,50,000 The Opening and Closing Stock of finished goods were:-
The manufacturer has to submit a tender for 100 washing Black Brown
machine by reducing the selling price by Rs. 1,000 per washing Opening Stock (tins) 480 1,600
machine. Closing Stock (tins) 1,080 600
You are required to estimate profit per washing machine, keeping The Opening stock of Black and Brown polish was valued at
the following details in mind.: its production costs of Rs. 80.4 per tin and Rs. 86.4 per tin
1. Material cost will go up by Rs. 250 per washing machine respectively. The cost of raw materials for Brown Polish is
2. Wages will go down by Rs. 300 per washing machine. 10% higher than that for Black but there is no difference in the
3. % of works on cost to wages will remain same as it was in 2003
cost of tins. Direct Wages for Brown are 8% higher than those
4. Administrative expenses will be reduced by Rs. 25 per
washing machine
for Black polish and production overheads are considered to
5. Selling overheads per washing machine will be reduced by vary with direct wages. Administrative and selling overheads
25%. are absorbed at a uniform rate per tin of polish.
Prepare a statement showing the cost and profit per tin of
20. In respect of a factory, the following information is available Polish.
for the year 2004:
Cost of Material Rs. 3,00,000 2. Electronics Ltd. furnish the following information for
Wages Rs. 2,50,000 10,000 TV valves manufactured during the year 2007:-
Factory overheads Rs. 1,50,000 Rs.
Administrative overheads Rs. 1,50,000
Selling Expenses Rs. 1,12,000
Distribution Expenses Rs. 70,000 Materials 90,000
Profit 20% on Total Cost Direct Wages 60,000
A work order has been executed in 2005 and the following Power and consumable stores 12,000
expenses have incurred: Factory indirect wages 15,000
Material Rs. 16,000 Wages Rs. 10,000 Lighting of factory 5,500
Assuming in 2005 the rate of factory overheads have gone up by Defective work (Cost of rectification)
20%, distribution charges have gone down by 10%, 3,000
administrative charges are Rs. 8,964 and selling charges are Rs. Clerical salaries and management Expenses 33,500
5,976. At which price the work order should be quoted so as to
Selling expenses 5,500
earn 20% profit on total cost?
** Factory overheads are based on direct wages and distribution
Sale proceeds of scrap 2,000
charges on factory cost. Plant repairs and maintenance and depreciation 11,500
The net selling price was Rs. 31.60 per unit and all units were
21. A manufacturer of scooter finds that in 2003 it costs him Rs. sold. As from 1st January 2008 the selling price was reduced to
6,16,000 to manufacture 200 Scooters which he sold at Rs. 4,000 Rs. 31 per unit. It was estimated that production could be
each. The cost was:
Raw Material Rs. 2,00,000
Prof. Anup Suchak,
 8 Cost Sheet and Tender
increased in 2008 by 50% due to share capacity. Rates for extra Rs. 20,000 for every 20% increase in
materials and direct wages will increase by 10%. capacity or a part thereof
You are required to prepare:- Each unit of raw material yields scrap which is sold at 20
a. Cost Sheet for the year 2007 showing various paisa. In 2011 the factory worked at 50% capacity for the first
elements of cost per unit, and 3 months, but it was expected to work at 80% capacity for the
b. Estimated cost and profit for 2008 assuming that remaining 9 months. During the first 3 months, the selling
15,000 units will be produced and sold during the price per unit was Rs. 12. What should be the price in the
year and factory overheads will be recovered as a remaining 9 months to earn a total profit of Rs. 2,18,000?
percentage of direct wages and office and selling
expenses as a percentage of works cost.

3. The Managing Director of a small manufacturing concern

consults you as to the minimum price at which he can sell the
output of one of the department of the company, which is
intended for mass production in future. The companys record
show the following particulars for the department for the past
years:-
Production and Sales 100 units
Materials 13,000
Direct Labour 7,000
Direct Charges (Variable) 1,000
Works overheads 7,000
Office overheads 2,800
Selling overheads 3,200
Profit 5,000 .
39,000 .
You ascertain that 40% of the works overheads fluctuate
directly with production and 70% of the selling overheads
fluctuate with sales. It is anticipated that the department would
produce 500 units per annum and that direct labour charges
per unit will be reduced by 20%, while fixed works overheads
will be increased by Rs. 3,000. Office overheads and fixed
selling overheads and expected to show an increase of 25%
but otherwise no charges are anticipated. Determine the cost
the profit for 500 units.

4. From the following particulars, prepare cost sheet of a

Brick Works indicating cost per 1000 bricks.
Coal: 5,000 tons @ Rs. 7.50 per ton
Wages Rs. 75,000
Royalties: Rs. 0.75 per 1,000 bricks
Depreciation of plant and machinery at 10% of capital outlay
Rs. 1,50,000
Removal of over burden at Rs. 0.50 per 1,000 bricks.
Works overheads at 10% of Wages and Coal.
Office overhead at 5% of Wages and Coal
Bricks made:- 1,01,52,284 (Allow wastage 1.5% of output)
Bricks Sold:- 80,00,000 at Rs. 20 per 1,000 bricks
Opening Stock of Bricks 20,00,000 Bricks.
Closing stock of bricks: 40,00,000 Bricks.

5. A factorys normal capacity is 1,20,000 units per

annum. The estimated costs of production are as under:
Direct Material Rs. 4 per unit
Direct Labour Rs. 2 per unit (subject to a minimum of Rs.
12,000 per month
Indirect Expenses:
Fixed Rs. 1,60,000 p.a.
Variable Rs. 2 per unit
Semi-variable Rs. 60,000 p.a. up to 50% capacity and an
Prof. Anup Suchak,