Pawan Kumar Srivastava

EPGP-13C-061
CMA, Assignment -1

Ans 2
Statement of Cost

Particulars INR
Material Used 180000
Manual & Machine Labor Wages Directly Chargeable 160000
Primary Cost 340000
Works Overhead Expenditure 40000
Works Cost 380000
Establishment & General Expenses 19000
Total Cost 399000
Percentage of works overhead to manual labor 25%
(40000/160000)X100
Percentage of establishment and general expenses to works 5%
cost (19000X380000)X100

Cost of Material 8000

Wages 6000
Primary Cost 14000
Works Overhead 25% of wages 1500
Work Cost 15500
Establishment & General Expenses 5% of works cost 775
Total Cost 16275
Profit (20% on selling price or 25% on cost) 4069
Price to be Quoted 20344
Pawan Kumar Srivastava
EPGP-13C-061
CMA, Assignment -1

Ans 3

Particulars INR
Materials Consume
Opening Inventory 3000
Material Purchased 110000
113000
Less Closing Inventory 4000
109000
Direct Labor 65000
Prime Cost 174000
Factory Overhead @ 50% of direct labor 32500
206500
Adjustment for WIP
Opening 4000
Closing (6000)
(2000)
+ 206500
= 204500
Add Opening Inventory of FG 8000
212500
Less Closing Inventory of FG 7000
205500
Cost of Goods Sold
Administrative Expenses @ 27500
Selling Overhead @ 5% of Sales 13750
Cost of sales 41250
246750
Profit (Balancing Figure) 28250
275000
Pawan Kumar Srivastava
EPGP-13C-061
CMA, Assignment -1

Ans 4
Output – 20000 Units
Period – Four Week Period Ended June 30, 2013

Particulars Total INR Per Unit INR

Raw Material Consumed 4000 0.200
Wages 6000 0.300
Prime Cost 10000 0.500
Works Overhead (1000 hrs @ Re 0.50) Work Cost 500 0.025
10500 0.525
Office Overhead (20% on works cost) cost of production 2100 0.105
12600 0.630
Less: Closing stock (2000 units @ Re 0.630) (1260) -
Cost of Goods Sold (18000 Units) 11340 0.630
Selling overhead (Re 0.06 per unit on 18000 units) 1080 0.060
Cost of sales 12420 0.690
Profit (balance figure) 5580 0.310
Sales 18000 1.00