F.Y.B.B.

A SEM 1 FINANCIAL ACCOUNTING UNIT COSTING

1. From the following information, prepare a statement of cost Showing (a) the cost of material used. (b) the
prime cost (c) the works cost, (d) the cost of production (e) the cost of sales and (f) the net profit.
Stock of finished goods on 31-3-2005 56,000
Stock of raw materials on 31-3-2005 25,600
Purchase of raw materials 5,84,000
Sale of finished goods 11,84,000
Stock of finished goods on 31-3-2006 60,000
Stock of raw materials on 31-3-2006 27,200
ProductiVe Wages 3,97,600
Works overhead 87,000 Ans: Total cost: Rs. 11,44,0000
Administrative overhead 71,000 Profit: Rs.40,000
Selling and distribution overhead 10,000
2. From the following information relating to Chetan Machine Manufacturing Company, you are required to prepare
statement of cost and find out percentage of net profit to sales .
1-4-05 31-3-06
Stock of Raw Materials 30,000 25,000
Cost of Works-in-Progress 12,000 16,000
Cost of Stock of Finished Goods 60,000 55,000
During the year, particulars about expenses and sales were as under :
Purchase of Raw Materials 4,50,000
Direct wages 2,30,000
Factory overheads 92,000 Ans : Cost of Sales Rs.8,28,000 Net Profit Rs.
Administration overheads 30,000 72,000, Percentage of Net Profit on sales 8%
Selling and distribution overheads 20,000
Sales 9,00,000
Work-in-Progress is to be valued on the basis of Prime Cost.
3. The following are the cost details of ABC limited. You are required to prepare a Cost Sheet showing the
Prime Cost, Factory Cost, Cost of Production, Cost of Sales and Profit .
Particulars Rs.
Sales 7,80,000
Materials
Raw Materials 4,00,000
Stationery 4,000
Packing Materials 2,500
Direct Wages 50,000
Salaries
Factory Staff 50,000
Administrative staff 40,000
Sales staff 20,000
Rent .
Factory 2,700
Office 1,400
Advertising 4,700
Telephone Expenses 3,000
Travelling Expenses
Office staff 3,000
Selling staff 4,500

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 General Expenses
Office 16,500
Selling 8,500 Ans : Cost of sales Rs.7,40,800, Net
Depreciation Profi Rs, 39,200
Plant & Machinery 90,000
Office Equipment 30,000
Sales Department vehicles 10,000
4. From the following details of K.B. Manu. co. Ltd., prepare a Cost Sheet showing stepwise costs and
determine the profit:
Particulars Rs.
Raw Materials
Opening stock 20,000
Purchases 1,24,000
Closing stock 24,000
Expenses for purchase of raw materials 2,000
Direct wages (paid) 36,000
Direct wages (outstanding-to be paid) 4,000
Factory supervisor's salary 24,000
Other expenses for factory 10,000
Rent (Factory 2/5 and Office 3/5) 4,000
Purchase of office stationery (Balance stock 1 ,000) 3,000
Salesmen commission 10,000
Depreciation
Machinery 6,000 Ans:cost of sales: Rs.2,26,000
Typewriter 2,000 Profit: Rs.16,000
Office Air-conditioner 8,000
Sales of wastage at the stage of prime cost 2,000
sales 2,42,000
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