STATEMENT OF COST FOR THE MONTH OF MARCH 2014

400 tons total cost= rs.25,000

1 ton=25,000/400=62.5

Rs. Rs.
st
Stock of Raw Materials in hand on 1 March, 2014 25,000
Add: Purchase of R/M 21,900
46,900
Less: Stock of R/M in hand on 31st March,2014 26,250
Value of Material Consumed 20,650
Direct wages 17,150
Prime Cost 37,800
Factory Overheads:
Non-productive wage 830
Works expenses 8,340 9,170
46,970
Add: Opening WIP (1st March, 2014) 8,220
55,190
Less: Closing WIP (31st March,2014) 9,100
Works Cost 46,090
Office and administrative expenses 3,160
Total Cost of Production (COP) 49,250
Add: Opening stock of finished goods 17,360
66,610
Less: Closing stock of finished goods 15,750
Cost of goods sold (COGS) 50,860

Sales 72,310
Gross Profit on goods sold (Sales- COGS) 21,450
Net Profit on goods sold :
Cost of goods sold 50.860
Add: Selling and distribution expenses 4,210
Cost of Sales 55,070
Sales 72,310
Net Profit for the month 17,240

STATEMENT OF COST (for the month of March,2014)

STATEMENT OF COST (for the month of December…..) Output- 400 tons

Total Cost (Rs.) Cost per

Ton(Rs.)
Direct Materials:
Paper Pulp 500 tons @Rs. 50 per ton 25,000 62.50
Other Materials 100 tons @ Rs.30 per ton 3,000 7.50
28,000 70.00
Less : Sale of waste material 800 2.00
Value of Direct Material Consumed 27,200 68.00
Direct Labour:
80 skilled men @ Rs.3 per day for 25 days 6,000 15.00
40 unskilled men @ Rs.2 per day for 25 days 2,000 5.00
Direct Expenses:
Special equipment 3,000 7.50
Special dyes 1,000 2.50
Prime Cost 39,200 98.00
Works Overhead:
Variable @ 100% on direct wages (6,000+2,000) 8,000 20.00
Fixed @ 60% on direct wages (60/100 X8,000) 4,800 12.00
Works Cost 52,000 130.00
Administrative overhead: @ 10% of works cost 5,200 13.00
Cost of Production 57,200 143.00
Selling and distribution overhead @ 15% on works cost 7,800 19.50
Total Cost 65,000 162.50