Cost Sheet

For the month of January

Product Name
Product Code Units Produced :

Total
Rs. Rs.
Opening Stock of Raw Material
Purchase of Raw Material 141400
Carriage Inward
Less: Closing Stock of Raw Material 1400
Material Consumed 140000
Direct Wages 30000
Direct Expenses
PRIME COST 170000

Add: Factory/Works Overheads

Indirect Manufacturing Labor costs V 10000
Indirect Manufacturing Labor costs F 16000
Plant energy costs 5000
Other Indirect Manufacturing Costs V 8000
Other Indirect Manufacturing Costs F 24000

Add: Opening Work in Progress

Less: Closing Work in Progress 63000
WORKS/FACTORY COST 233000
Add: Office/Administration Overheads

Administrative Cost 50000

50000
COST OF PRODUCTION 283000
Add: Opening Stock of finished goods
Less: Closing Stock of finished goods 20970
COST OF GOODS SOLD 262030
Add: Selling & Distribution Overheads
Marketing, distribution, and customer-service
122850
costs V
Marketing, distribution, and customer-service
40000
costs F
162850
COST OF SALES 424880
PROFIT 11920
SALES 436800
of January

Per Unit Units produced Material

Quantity

0
0.7 202000

0.7 2000
1.4 100000 200000 <--- 1

1.7 100000

0
0
2.33 100000

2.83 100000
0
2.83 7410 <--- 2
2.83 92590
4.59 92590
0.13 92590 <-- 5
4.72 92590 <--- 4
 Cost Sheet
Product Name
Product Code Units Produced :

Total Per Unit

Rs. Rs.
Opening Stock of Raw Material
Purchase of Raw Material
Carriage Inward
Less: Closing Stock of Raw Material
Material Consumed
Direct Wages
Direct Expenses
PRIME COST

Add: Factory/Works Overheads

Indirect Wages
Power
Rent Rates (Factory)
Insurance (Factory)
Lighting (Factory)
Repairs to machinery
Indirect Material
Supervision (Factory)
Depreciation of Plant
Drawing Office Salaries
Add: Opening Work in Progress
Less: Closing Work in Progress
Less: Sale of Scrap
WORKS/FACTORY COST 0
Add: Office/Administration Overheads
Rent Rates (office)
Insurance (office)
Lighting (office)
Supervision (office)
Office Salaries
Sundry Expenses
Repairs of Office Building
Depreciation of Building
Counting House Salary 0
COST OF PRODUCTION 0
Add: Opening Stock of finished goods
Less: Closing Stock of finished goods
COST OF GOODS SOLD

Add: Selling & Distribution Overheads

Carriage Outward
Travelling Expenses
Advertising
Agent’s Commission
Bad Debts
Delivery Van Expenses
Salesman’s Salary 0
COST OF SALES 0
PROFIT
SALES
Quantity
Skoda Octavia, plant of New United Motor Manufacturing, Ltd. (NUMML), a joint venture of General Mot
assembles two types of cars (Corollas and Geo Prisms). Separate assembly lines are used for
Classify the following cost items as:
a. Direct or indirect (D or I) costs with respect to the type of car assembled (Corolla or Geo Prism).
b. Variable or fixed (V or F) costs with respect to how the total costs of the plant change as the number of

Cost item

1 Cost of tires used on Geo Prisms

2 Salary of public relations manager for NUMML plant
3 Annual awards dinner for Corolla suppliers
4 Salary of engineer who monitors design changes on Geo Prism
Freight costs of Corolla engines shipped from Toyota City, Japan, to Fremont,
5 California
6 Electricity costs for NUMML plant (single bill covers entire plant)
Wages paid to temporary assembly – line workers hired in periods of high
7
production (paid on hourly basis)
8 Annual fire – insurance policy cost for NUMML plant
enture of General Motors and Toyota, each type of car.

or Geo Prism).
ange as the number of cars assembled changes.

Direct or Indirect Variable or Fixed

D V
I F
D F
D F
D V
I V
D V
I F