MAC(sec-b)

ASSIGNMENT -1

COST SHEET
OF DAIRY
MILK.
EFFORTS BY:
NIHARIKA ANAND
MEGHA MITTRA
SHIVANSH DANDONA
LOVEDEEP KAPOOR
YASH GARG
DAIRY MILK- INTRODUCTION
DAIRY MILK is a brand of milk chocolate currently manufactured by
CADBURY, except in the United States where it is made by the Hershey
Company. It was introduced in the United Kingdom in 1905by and now consists of
a number of products. Every product in the Dairy Milk line is made with
exclusively milk chocolate.

Cadbury Dairy Milk remains at the top of the Indian Chocolate Market not only
because of its most delicious, best tasting chocolate but also because of its
memorable communication.

The following are the details of 4,50,000 units of CADBURY DAIRY MILK
CHOCOLATE:-

 RAW MATERIAL REQUIRED FOR 4,50,000 UNITS:-

S.NO MATERIAL AMOUNT

. (in Rs.)
1. Sugar 3,00,000
2. Cocoa Butter 3,00,000
3. Cocoa Solids 3,20,000
4. Peanuts 2,00,000
5. Milk Solids 2,00,000
6. Chocolate Coated 4,00,000
Raisin
7. Almonds 3,00,000
8. Honey 5,00,000
9. Boston Baked Bean 15,0000
10 Salt 25,000
11. Apricot 75,000
 DIRECT LABOUR INVOLVES THE FOLLOWING EXPENSES:-

S.NO PARTICULARS HOURS SPENT AMOUNT

. (in Rs.)
1. Set Up 05 20,000
2. Mixer 120 1,80,000
3. Dough Roller 75 1,80,000
4. Cookie Cutter 25 20,000
5. Baker 50 1,00,000
6. Timer 10 20,000
7. Decorator 55 80,000
8. Quality control 10 1,00,000

 Carriage Inward amounts to Rs. 2,42,500

 Carriage Outward amounts to Rs. 20,000
 MANUFACTURING COSTS ARE AS FOLLOWS:-

S.NO FIXED AMOUNT

. (in Rs.)
1. Depreciation on Plant & Machinery 2,57,500
2. Rent 1,50,000
3. Power & Consumable Stores 1,50,000
4. Factory Insurance 1,50,000
5. Supervisor’s Salary 50,000

S.NO VARIABLE AMOUNT PER UNIT

. (in Rs.)
1. Electricity Charges 0.11/U
2. Power & Consumable Stores 0.22/U
3. Running Expenses of Machine 0.33/U

 Office & Staff Salary amounts to Rs. 10,00,000

 Office Rent amounts to Rs.80,000
 Expenses incurred on:-
Office Computer Rs. 1,20,000
 Furniture Rs. 3,00,000
Telephone Rs. 10,000
 Depreciation on Office Furniture amounts to Rs. 50,000.
 Rent, Rates & Taxes amounts to Rs. 30,000.
 Salaries to Administrative Staff amounts to Rs. 3,70,000.
 SELLING AND DISTRIBUTION EXPENSES ARE AS FOLLOWS:-

S.NO PARTICULARS AMOUNT

. (in Rs.)
1. Advertisement 4,00,000
2. Petrol 1,00,000
3. Delivering Vehicles 2,50,200
4. Maintenance of Delivering Vehicles 49,800
5. Packing Rates 50,000
6. Bad Debts Written Off 1,00,000

 The Company charges Net Profit at the Rate of 20% on Selling Price.
 COST SHEET
Output=4,50,000 chocolates
PARTICULARS TOTAL COST
COST PER
UNIT
RAW MATERIALS
Sugar = 3,00,000
Cocoa Butter = 3,00,000
Cocoa Solids = 3,20,000
Peanuts = 2,00,000 23,20,000 5.16
Milk Solids = 2,00,000
Chocolate Coated Raisins = 4,00,000
Almonds =3,00,000
Salt = 25,000
Apricot = 75,000
Honey = 50,000
Baked Beans = 1,50,000
DIRECT LABOUR
Set up = 20,000
Mixer = 1,80,000
Dough roller = 1,80,000 7,00,000 1.56
Cookie cutter = 20,000
Baker = 1,00,000
Timer = 20,000
Decorator = 80,000
Quality control = 1,00,000
Carriage on Material = 2,42,500 2,42,500 0.53
PRIME COST 32,62,500 7.25
FACTORY EXPENSES
A. FIXED
Depreciation on Plant & Machinery = 2,57,500
Rent = 1,50,000
Power & Consumable Stores = 1,50,000
Factory Insurance = 1,50,000 10,57,500 2.35
Supervisor’s Salary = 50,000
B. VARIABLE
Electricity Charges = 50,000
Power & Consumable Stores = 1,00,000
Running Expenses of Machine = 1,50,000
FACTORY COST 43,20,000 9.60
OFFICE AND ADMINISTRATION EXPENSES:-
Office Staff Salary = 10,00,000
Rent = 80,000
Computer = 1,20,000
Furniture = 3,00,000
Telephone = 10,000 1980000 4.4
Carriage Outward = 20,000
Depreciation on Furniture = 50,000
Salaries to Administrative staff = 3,70,000
Rent, Rates & Taxes = 30,000
COST OR PRODUCTION/COST OF GOODS SOLD 63,00,000 14.00
SELLING & DISTRIBUTION EXPENSES
Advertisement (Print & By Local T.V. Channels) = 4,00,000
Petrol = 1,00,000
Delivery Vehicles = 2,50,000 9,49,800 2.11
Maintenance of Delivery Vehicles = 49,800
Packing Rates = 50,000
Bad Debts Written Off = 1,00,000
COST OF SALES 72,00,000 16.00
NET PROFIT ( 20% ON SELLING PRICE) 18,00,000 04.00
SALES 90,00,000 20.00