PRM-41

ASSIGNMENT NO-1

M/s Central Agro Processing Limited manufactures a product named "KETCHUP". Follo
are provided to find out the cost of sale of the product based on the cost data of the p
The organisation issues raw material on FIFO method.
Finished production - kg

Sl. No. Cost

1 Basic raw material purchase - kg
2 Packing material (cartons) purchase - Nos.
3 Other material consumption

4 Indirect labour cost

5 Office printing and stationery
6 Sales manager's travelling cost
7 Bad debts
8 Office expenses
9 Depreciation on plant and machinery
10 Depreciation on office furniture
11 Depreciation on fire extinguishers
12 Legal fees
13 Auditors fees
14 Conveyance expenses
15 Repairs to factory building
16 Repairs to finished goods godown
17 Donation to a charitable trust
18 Direct labour cost
19 Insurance premium on work in progress
20 Insurance premium on raw material
21 Insurance premium on finished goods
22 Insurance premium on plant and machinery
23 Miscellaneous factory expenses
 24 Salary to production staff
25 Salary to administration staff
26 Salary to sales and distribution staff
27 Direct expenses
28 Sales depot office expenses
29 Sales staff telephone cost
30 Sales commission
31 Freight outward for goods to depot
Advertisement expenses for promotion of the
32 product
Total

Opening Inventory
1 Raw material - kg
2 Packing material (cartons) Nos.
3 Work in progress - kg
4 Finished goods - kg
Closing Inventory
1 Raw material - kg
2 Packing material (cartons) Nos.
3 Work in progress - kg
4 Finished goods - kg
Production manager reported the following:

1 There was a process loss which was found to be

within limits

One lot of raw material was given on loan to the

2 neighbouting unit for one month which was not
received back by the end of previous month. - Kg

3 Sales - Kg
4 Sales price - Rs/kg
Standard consumption of raw material per kg of
5
production
Required
1 Material balancing
2 Effective production
3 Factory cost of finished production
4 Cost of production per unit of goods produced
5 Cost of sale per unit of quantity sold
6 Total value of clo inventory
7 Costing Profit/Loss on the product
8 Actual consumption of raw material per kg of effective production
Variance of actual consumption per kg of effective production with that of
9
consumption
10 Cost (Amount-Rs.) saved/ lost due to less/excess consumption respectively
s a product named "KETCHUP". Following cost details
duct based on the cost data of the previous month.

15,820

Quantity - kg/No Amount-Rs.

14,700 588,000
500 50,000
20,000

10,000
6,000
24,000
5,000
8,000
7,000
3,000
2,000
12,000
40,000
10,000
3,000
2,000
11,000
200,000
1,500
1,200
2,300
6,000
17,000
 150,000
120,000
180,000
30,000
4,000
15,000
60,000
24,000

176,000
1,788,000

Quantity Value-Rs.
3,000 114,000
500 45,000
1,500 105,000
1,200 86,400

500 ?
800 ?
1,200 ?
400 ?

3% of raw
material
consumption

1,200

16,620
128

1.0500
r kg of effective production
of effective production with that of standard

ss/excess consumption respectively

 Material Balancing for October 2021

Particulars (Raw Material) Qty

Raw material purchased 14,700

Add: Opening Stock 3,000

Total Qty for Consumption 17,700

Less: Closing Balance (500)

Less: Due to the non recieval of
(1,200)
material given on loan
Raw Material issued for Production 16,000

Particulars (WIP) Qty

Material received from the store 16,000

Add: Opening Stock 1,500

Total Qty available for processing
17,500
into Finished Production
Less: Closing Balance (1,200)

Less: Loss of material (480)

Available for Finished production 15,820

Particulars (Finished Product) Qty

Available for Finished Production 15,820

Add: Opening Stock 1,200

Total Qty for Sale 17,020

Less: Closing Balance (400)

Sales 16,620

Particulars (Packaging Material) Qty

Purchase of Packing Material (Cartons) 500

Add: Opening Stock 500

Total Qty available for Consumption 1,000

Less: Closing Balance (800)

Packing material for Consumption 200

 Effective Production for October 2021

Particulars (Raw Material) Qty

Finished Produtcion 15,820

Add: Closing Stock of WIP 1,200

Total Qty for Consumption 17,020

Less: Opening Balance of WIP (1,500)

Effective Production 15,520

 Cost sheet preparation of M/s Central Agro Processing Limited's Ketchup for the

Particulars Qty (in Kg.)

Finished Production 15,820

Effective Production 15,520

Sales 16,620

Particulars Qty Rate

Opening Balance of Principal Raw material 3,000 ₹ 38.00

Add: Purchase 14,700 ₹ 40.00

Total Qty available for Consumption 17,700 ₹ 39.66

Less: Closing Balance (500) ₹ 39.50

Raw Material for Consumption 17,200 ₹ 39.67

Purchase of Packing Material (Cartons) 500 ₹ 100.00

Add: Opening Stock 500 ₹ 90.00

Total Qty available for Consumption of Packing Material 1,000 ₹ 95.00

Less: Closing Balance (800) ₹ 93.75

Packing material for Consumption 200 ₹ 100.00

Other material consumption

Direct labour cost

Direct expenses

Prime Cost

Indirect labour cost

Depreciation on plant and machinery

Repairs to factory building

Insurance premium on work in progress

 Insurance premium on raw material

Insurance premium on finished goods

Insurance premium on plant and machinery

Miscellaneous factory expenses

Salary to production staff

Factory Overheads

Current period Factory Cost

Material received from the store 16,000 ₹ 74.11

Add: Opening Stock 1,500 ₹ 70.00

Total Qty available for processing into Finished Production 17,500 ₹ 73.76

Less: Closing Balance (1,200) ₹ 74.11

Less: Loss of material (480) ₹ 74.11

Factory Cost of Finished Goods 15,820 ₹ 73.72

Office printing and stationery

Office expenses

Depreciation on office furniture

Depreciation on fire extinguishers

Repairs to finished goods godown

Legal fees

Auditors fees

Salary to administration staff

Administration Expenses

Cost of Production of Qty Produced

Available for Finished Production 15,820 ₹ 85.92

Add: Opening Stock 1,200 ₹ 72.00

Total Qty for Sale 17,020 ₹ 84.94

Less: Closing Balance (400) ₹ 85.92

 Cost of Production for Qty sold 16,620 ₹ 84.92

Sales manager's travelling cost

Salary to sales and distribution staff

Sales depot office expenses

Sales staff telephone cost

Conveyance expenses

Sales commission

Freight outward for goods to depot

Advertisement expenses for promotion of the product

Sales & Distribution Expenses

Cost of Production of Qty Sold

Sales Realization

Margin/Costing Profit
ng Limited's Ketchup for the month of October 2021

Cost - Rs./Unit of Cost - Rs./Unit of

Cost (in Rs.)
Finished Production Effective Production
₹ 114,000

₹ 588,000

₹ 702,000

₹ 19,750

₹ 682,250 ₹ 43.96

₹ 50,000 ₹ 3.22

₹ 45,000 ₹ 2.90

₹ 95,000 ₹ 6.12

₹ 75,000 ₹ 4.83

₹ 20,000 ₹ 1.29

₹ 20,000 ₹ 1.29

₹ 200,000 ₹ 12.89

₹ 30,000 ₹ 1.93

₹ 952,250 ₹ 61.36

₹ 10,000 ₹ 0.64

₹ 7,000 ₹ 0.45

₹ 3,000 ₹ 0.19

₹ 1,500 ₹ 0.10
₹ 1,200 ₹ 0.08

₹ 2,300 ₹ 0.15

₹ 6,000 ₹ 0.39

₹ 17,000 ₹ 1.10

₹ 150,000 ₹ 9.66

₹ 198,000 ₹ 12.76

₹ 1,150,250 ₹ 74.11

₹ 1,185,825 ₹ 76.41

₹ 105,000 ₹ 6.77

₹ 1,290,825 ₹ 83.17

₹ 88,936.86 ₹ 5.73

₹ 35,574.74 ₹ 2.29

₹ 1,166,313.14 ₹ 73.72 ₹ 75.15

₹ 6,000 ₹ 0.38

₹ 8,000 ₹ 0.51

₹ 3,000 ₹ 0.19

₹ 2,000 ₹ 0.13

₹ 2,000 ₹ 0.13

₹ 12,000 ₹ 0.76

₹ 40,000 ₹ 2.53

₹ 120,000 ₹ 7.59

₹ 193,000 ₹ 12.20

₹ 1,359,313.14 ₹ 85.92

₹ 1,359,313.14

₹ 86,400.00

₹ 1,445,713.14

₹ 34,369.49
₹ 1,411,343.66 ₹ 84.92

₹ 24,000 ₹ 1.44

₹ 180,000 ₹ 10.83

₹ 4,000 ₹ 0.24

₹ 15,000 ₹ 0.90

₹ 10,000 ₹ 0.60

₹ 60,000 ₹ 3.61

₹ 24,000 ₹ 1.44

₹ 176,000 ₹ 10.59

₹ 493,000 ₹ 29.66

₹ 1,904,343.66 ₹ 114.58

₹ 2,127,360 ₹ 128.00

₹ 223,016.34 ₹ 13.42
 Value of the Stock at the end of October 2021

Particulars Qty (in Kg.) Value (in Rs.)

Raw Material 500 ₹ 19,750

Work in Progrees (WIP) 1,200 ₹ 88,937

Finished Products 400 ₹ 34,369

Packaging materials 800 ₹ 75,000

Total Value of the Inventory ₹ 218,056

Cost Control of Ketup for the Month October 2021

Particulars Value Units

Standard Consumption of Principal Raw Material 1.05 per Kg. of Production

Actual Consumption of Principal Raw Material 1.03 per Kg. of Production

Consumption of Raw Material Saving 0.02 per Kg. of Production

Total Consumption of Raw Material Savings 296 Kg.

Average rate of Material ₹ 39.67 Rs./Kg.

Cost of Excess Consumption ₹ 11,741.05 Rs.