Q-1 ABC Co. submits the following information on 31st March 2022.
Particulars Amount €
Sales for the Year 275000
Inventories at the beginning of the year:
Finished Goods 7000
Work in Progress 4000
Purchase of Material for the year 110000
Materials Inventory:
At the beginning of the year 3000
At the end of the year 4000
Direct Labour 65000
Factory Overheads are 60% of the Direct Labour Cost
Inventories at the end of the year:
Finished Goods 6000
Work in Progress 8000
Other Expenses for the year:
Selling Expenses 10 % of Sales
Administrative Expenses 5% of sales
Prepare Cost Sheet.
Q.2 Prepare cost sheet with cost per unit for the month of June 2021.
Raw material consumed Rs. 2,00,000
Direct wages Rs. 2.50 per unit
Direct expenses Rs. 30,000
Machine hours worked 4,000 hrs
Machine hour rate Rs. 5
Office overheads 20% of factory cost
Selling overheads Rs. 2 per unit
Units produced 20,000
Units sold 15,000
Profit rate is 20% on sales.
CA VISHAL GOEL PH: 9015783723, 7982971476
(CA, CFA, MBA, [Link], CS)
Q-3 Calculate the Prime Cost, Factory Cost, Total Cost of Production, Cost of Sales and
Profit from the following particulars:
Particulars Amount €
Raw Materials Consumed 40000
Wages 10000
Directly Chargeable Expenses 2000
Oil & Waste 100
Wages of Foreman 1000
Storekeeper’s wages 500
Electric Power 200
Lighting:
Factory 500
Office 200
Rent:
Factory 2000
Office 1000
Repairs & Renewals:
Factory Plant 500
Machinery 1000
Office Premises 200
Depreciation:
Office Premises 500
Plant & Machinery 200
Consumable Store 1000
Manager’s Salary 2000
Director’s Fees 500
Office Printing & Stationery 200
Telephone Charges 50
Postage & Telegrams 100
Salesman Commission & Salary 500
Travelling Expenses 200
Advertising 500
Warehouse Charges 200
Carriage Outward 150
Total Sales 100000
CA VISHAL GOEL PH: 9015783723, 7982971476
(CA, CFA, MBA, [Link], CS)
Q.4 Prepare “cost sheet” for the period ended on 31.3.2022 of M/S Vishwas.
Consumable materials: Rs.
Opening stock 10,000
Purchases 85,000
Closing stock 4,000
Direct wages 20,000
Other direct expenses 10,000
Machine imported 50,000
Factory overheads 100% of direct labour
Office overheads 10% of works cost
Selling and distribution overheads Rs. 2 per unit sold
Units of finished product: In hand at the beginning of the period
(value Rs. 16,000) 1,000
Produced during the period 10,000
In hand at the end of the period 2,000
Also, find out the selling price if profit is 20% of the sales.
Q.5 VGC industries manufactures a product O. on 1st January, 2021 there were 5,000 units of
finished product in stock. Other stocks on 1st January, 2021 were as follows:
Rs.
Work-in-progress 1,00,000
Raw materials 2,40,000
The foll. information available from cost records for the year ended 31 st December, 2021
Direct materials 18,00,000
Direct labour 6,40,000
Freight on raw materials purchased 1,10,000
Indirect labour 2,40,000
Othet factory overheads 6,20,000
Stock of raw materials on 31-12-21 1,80,000
Work- in-progress on 31.12.1921 1,50,000
Sales (1,50,000 units) 60,00,000
Indirect materials 4,20,000
st
There are 15,000 units of finished stock in hand on 31 Dec,2021. You are required to prepare
cost sheet. Assuming that opening stock & closing stock is to be valued at same cost per unit.
Q.6
Annual sales 20,000 units
Materials Rs.5.00 per unit
Labour Rs.1.50 per unit
Direct expenses Rs. 1.00 per unit
Overheads Rs. 2.50 per unit
Administrative expenses Rs. 2.00 per unit
Profit Rs. 2.00 per unit
Selling overheads 20% on sales
Prepare cost sheet and selling price.
CA VISHAL GOEL PH: 9015783723, 7982971476
(CA, CFA, MBA, [Link], CS)
Q.7 The CA ltd. has received an enquiry for the supply of 10,000 pens. The costs are estimate as
under:
Raw materials – 50,000 kgs. at Rs. 2 per kg.
Direct wages - 20,000 hours at Rs. 2 per hour
Variable overheads
Factory Rs. 2.50 per labour hour
Selling and distribution Rs. 26,000
Fixed overheads:
Factory Rs. 10,000
Selling and distribution Rs. 14,000
Prepare cost sheet showing the price to fixed which result in profit of 20 % on selling price.
Q.8 Prepare a statement of cost from the following trading and profit and loss account for the
year ending 31st March, 2021.
Particulars Rs. Particulars Rs.
Opening stock: Sales 10,00,000
Materials 80,000 Closing stock:
Finished goods 2,50,000 Materials 1,50,000
Purchase of materials 7,00,000 Finished goods 3,00,000
Direct labour 1,00,000
Grease, oil etc. 5,000
Salary of storekeeper 7,000
Power and fuel 8,000
Gross profit c/d 3,00,000
14,50,000 14,50,000
Lighting: Gross profit b/d 3,00,000
Office 5,000 Dividends received 20,000
Sales deptt. 6,500 Interest on loan 6,000
Depreciation: Transfer fees received 14,000
Office premises 10,000
Delivery vans 7,500
Fees of office manager 20,000
Bank charges 15,000
Selling expenses 15,000
Sales commission 5,000
Preliminary expenses 30,000
Packing expenses 11,000
Discount on debentures 5,000
Underwriting comm. 10,000
General reserve 20,000
Tax paid 70,000
Net profit 1,10,000
3,40,000 3,40,000
CA VISHAL GOEL PH: 9015783723, 7982971476
(CA, CFA, MBA, [Link], CS)
