The Bay Engineering Co. Ltd.

Statement of Cost and Profit of 1000 scaring Machine

For the year of 2019

Particular Per Unit Taka Taka

Material Consumed 80000
Wages paid 120000
Prime Cost 200000
Manufacturing Expenses 50000
Cost of Manufactured 250000
Operating Expenses:
Salaries 60000
Rent, Rates and Insurance 10000
Selling Expenses 30000
General Expenses 20000
Total Expenses 120000
Cost of Goods sold 370000
Profit 30 30000
Sales 400000

The Bay Engineering Co. Ltd.

Statement of Cost and Profit of 1000 scaring Machine
For the year of 2019

Particular Per Unit Taka Taka

Material consumed in 2019 80000
Add: 20% increase 16000
Material consumed in 2020 96000
Wages paid in 2019 120000
Add: 5% increase 6000
Wages paid in 2020 126000
Prime Cost 222000
Manufature expenses in 2019 50000
Add: (20% + 5%) = 25% increase 12500
Manufacture expenses in 2020 62500
Cost of Goods Manufactured 284500
Operating Expenses:
Salaries 60000
Rent, Rates and Insurance 10000
Selling Expenses 30000
General Expenses 20000
Total Expenses 120000
Cost of goods sold 404500
Profit (10% of Sales or 1/9 of Cost of Goods) 44944.44
Sales 449444.4
2(b)
Star Ltd.
Satement of Cost and Profit of 1200 unit
For Current Year

Particular Per Unit CoTaka Taka

Cost of Direct Materials 25800
Direct Wages 27857.14
Prime Cost 53657.14
Factory Overhead 11142.86
Cost of goods Manufactured 64800
Administrative and Selling Expense 21200
Cost of goods sold 86000
Profit 24400
Sales 92 110400

Conversion cost =(Labor Cost + Factory Overhead) 39000

Star Ltd.
Estimated Satement of Cost and Profit of 1500 unit
For Current Year

Particular Per Unit CoTaka Taka

Cost of Direct Materials in current year 35880
Add: 10% increase 3588
Cost of Direct Materials for next year 39468
Direct Wages in current year 27857.14
Add: 20% increase 5571.429
Direct Wages in next year 33428.57 46800
Prime Cost 72896.57
Factory Overhead 13371.43
Cost of goods Manufactured 86268
Administrative and Selling Expense 21200
Cost of goods sold 107468
Profit 36532
Sales 96 144000

Difference in net profit = 12132

2(b)

Direct Material per unit = 176

Direct Labor per unit = 230

Watch Company
Statement of Cost for 100000 Units Watches

Particular Per unit CoTaka Taka

Direct Materials 44 4400000
Direct Labor 23 2300000
Prime Cost 67 6700000
Factory Overhead:
Fixed 5000000
Variable 28 2800000
Total Factory Overhead 7800000
Cost of goods Manufactured 14500000
Administrative and Selling Expen 5 500000
Cost of Goods for sold 15000000

Watch Company
Statement of Cost for 200000 Units Watches

Particular Per unit CoTaka Taka

Direct Materials 44 8800000
Direct Labor 23 4600000
Prime Cost 67 13400000
Factory Overhead:
Fixed 5000000
Variable 28 5600000
Total Factory Overhead 10600000
Cost of goods Manufactured 24000000
Administrative and Selling Expen 5 1000000
Cost of Goods for sold 25000000
2(a)

Redbud Company
Schedule of cost of direct Materials

Particular Taka Taka

Beginning Inventory 31200
Add: Purchase Materials 150000
Cost of Material available in use 181200
Less: End of Direct Materials 49300
Cost of Material available in use 131900 Ans
Direct Labor 210000
Prime Cost 341900
Overhead cost 345000
Work Cost/ Production Cost 686900
Add: Beginning Work in process 55400
Cost of goods manufacture in use 742300
Less: End of Work in Process 26900
Cost of goods for manufactured 715400 Ans

i) The total cost of direct materials used in production is 131900

ii) The cost of goods manufactured is 715400 Tk.
The unit manufacturing cost is 715400 / 20000 = 35.77

2(b)
i) We know,
Beginning of Inventory + Purchase Inventory = Ending Inventory + Direct Materials used in use

=> 16000+275000 = Ending Inventory + 200000

=> Ending Inventory = 91000

ii) Landsman Company

Statement of cost of goods
Particular unit Taka
Beging of finished goods 600 3510
Produced of goods 10000 60000
Goods sold 8900
Ending finished goods inventory 1700 Ans

iii)
We Know,
 Manufacturing Cost = Prime Cost + Factory Overhead
=> 39.5 = 19.5 + Factory Overhead
=> Factory Overhead = 39.5 - 19.5
=> Factory Overhead = 20 Tk.

Again,
Conversion cost = Direct Labor Cost + Factory Overhead
=> 32 = Direct Labor Cost + 20
=> Direct Labor Cost = 12

Again,
Prime Cost = Direct Material Cost + Direct Labor Cost
=> 19.5 = Direct Material Cost + 12
=> Direct Labor Cost = 19.5-12
=> Direct Labor Cost = 7.5 Tk. Ans.

iv) We know,
Cost of goods Manufactured = Beging WIP + Manufacturing Cost - Ending WIP
=> 125000 = 60000 + 159000 - Ending WIP
=> Ending WIP = 94000 Tk. Ans

Again,
Manufacturing Cost = Prime Cost + Overhead Cost
=> Overhead Cost = 159000 - 90000
=> Overhead Cost = 69000 Tk. Ans
rials used in use
2(b)
ABC Company
Statement of Cost Goods Sold
For the year 2017

Particular Unit Per Unit CoTaka Taka

Beginig Raw Materials 35000
Add: Purchase Raw Materials 364000
Add: Caring Cost 8000
Raw materials available in use 407000
Less: Ending Materials in Dec, 2017 50000
Less: Purchage Discount 5200
Cost of Raw Materials 351800
Direct Labour 162500
Prime Cost 514300
Factory Overhead:
Depriciation of Factory and Machinery 21500
Generation Machine 9500
Factory Building 5200
Internal Road and Road 10000
Fuel (gas bill) 4500
Telephone factory 6000
Power for light (90%) 2700
Water 4000
I. and rates and Taxes (80%) 3440
Indirect Materials 2645
Wages paid to no worker (Indirect Labor) 17000
Factory Foreman Salary 6000
Factory Manager Salary 16000
Total Factory Overhead 108485
Total Manufacring Cost 622785
Add: Beginnig Work in process 90000
Cost of manufactured available in use 712785
Less: Ending work in process in Dec 45000
Cost of goods manufactured 667785
Add: Beginning of finished goods 350 162 56700
Cost of goods to be sold 4330 167.3176 724485
Less: Ending of finished goods 450 167.32 75294
Cost of goods sold 3880 167.32 649191
 ABC Company
Income Statement
For the year 2017

Particular Unit Per Unit CoTaka Taka

Sales 3880 220 853600
Less: Cost of Goods 3880 167.32 649191
Gross Margin 204409
Operating Expenses:
Office Equipment 2800
Vehicle engage for marketing 3200
Power for light (10%) 300
Land rates and taxes (20%) 860
Leave and bonus 40000
Marketing Expenses 20000
Administrative Expenses 15000
Income Tax Paid 5000
Total Operating Expenses 87160
Add: Interest earned 6000
Net Profit 3880 31.76521 123249
2(a)

i) Product Cost = Direct Materials + Direct Labor + Manufacturing Overhead

=> Product Cost = 80000 + 42000+ 19000
=> Pr 141000 Tk.
ii) Period Cost = Selling Expenses + Administrative Expense
=> Period Cost = 22000 + 35000
=> Pe 57000 Tk.

iii) Conversion Cost = Direct Labour + Manufacturing Overhead

=> Conversion Cost = 42000 + 19000
=> Conversion Co 61000 Tk.

iv) Prime Cost = Direct Materials + Direct Labour

=> Prime Cost = 80000 + 42000
=> Pr 122000 Tk.

2(b)

Harris Company

Units Produced and sold

30000 40000 50000 45000
Particulars Taka Taka Taka Taka
Total Costs 180000 240000 300000 270000
Variable Costs 300000 400000 500000 450000
Total Costs 480000 640000 800000 720000
Cost Per unit
Variable Costs 6 6 6 6
Fixed Cost 10 10 10 10
Total Cost Per Unit 16 16 16 16

Harris Company
Income Statement of 45000 units

Particulars Per unit CoTotal Taka

Sales 16 720000
Variable Cost 6 270000
Contribution Margin 450000
Fixed Cost 10 450000
Operating Profit 0
 Cost Behavior Period (Selling or Product Cost
Cost Item Variable Fixed administrative) Cost Direct Indirect
Direct labor 118000 118000
Advertising 50000 50000

Factory
Supervision 40000 40000

Property
Taxes,
factory
building 3500 3500

Sales
Commissions 80000 80000
Insurance,
factory 2500 2500

Depreciation,
Administrativ
e office 4000 4000

Lease Cost,
factory
equipment 12000 12000

Indirect
materials,
factory 6000 6000

Depriciation,
factory
building 10000 10000

Administrativ
e office
(billing 3000 3000

Administrativ
e office
salaries 60000 60000

Direct
materials
used 94000 94000
Utilities,
factory 20000 20000
ii) Total 298000 205000 197000 212000 94000 503000
503000
 Total Product
iii) Cost = 306000

Avg. Product
cost = 153

Avg. Product
will be
increase if
the
production
drops to only
1000 sets
iv) annually.
 KMX Company
Statement of cost of Goods Sold

Particulars Taka Taka

Direct Materials:
Beginning of Raw Materials 45000
Add: Purchase of raw materials 260000
Total cost of raw materials 305000
Less: Purchase return 6000
Less: Ending raw materials 34000
Raw material Used 265000
Direct Labour 95000
Prime Cost 360000
Factory Inventory:
Depriciation on factory building 12000
Depriciation on Machinary 27000
Property Taxes (75%) 4500
Repaire and maintainance 10000
Insurance (50%) 6000
Indirect Labour 34000
Indirect materials (Opening+Buy 5000
Heat, light and power 25000
Total Factory Overhead 123500
Total Manufacture Cost 483500
Add: Beginning Work in Process 15000
Cost of goods to be manufatured 498500
Less: Ending Work in Process 9500
Cost of goods manufactured 489000
Add: Beginning finished goods 38000
Cost of goods to be sold 527000
Less: Ending Finished goods 52000
Cost of goods sold 475000
 Ishrak Company
Statement of Cost of Goods

Particulars Taka Taka

Direct Materials:
Beginning of Raw Materials 7000
Add: Purchase Raw materials 130000
Total cost of Raw Materials 137000
Less: Ending Raw Materials 8000
Cost of Raw Materials for use 129000
Direct Labour 80000
Prime Cost 209000
Fatory Overhead:
Rent of factory building 70000
Indirect labour 50000
Utilities, Factory 9000
Maintainance, Factory 24000
Supplies, Factory 800
Depriciation, Factory 40000
Total Factory Overhead 193800
Total Manufacturing Cost 402800
Add: Biginning Work in process 6000
Cost of goods manufactured in use 408800
Less: Ending Work in process 10000
Cost of goods Manufactured 398800
Add: Beginning of Finished Goods 30000
Cost of goods to be sold 428800
Less: Ending of Finished Goods 15000
Cost of goods sold 413800

Ishrak Company
Statement of Cost of Goods

Particulars Taka Taka

Sales 650000
Less: Cost of goods sold 413800
Gorss profit 236200
Operating Expenses:
Advertising expenses 100000
Sales Commission 35000
Depriciation, Office 9000
Selling and administrative expen 20000
Total Operating Expenses 164000
Net Profit 72200
i) Production Factory
Statement of Cost of 1000 units
For the month of June, 2013

Particulars Per Unit CoTaka Taka

Opening Stock of Raw Materials 6000
Add: Purchase raw materials 144000
Less: Ending stock of Raw Materials 10000
Raw materials used 140 140000
Direct Wages: (55000-3000-2000 50 50000
Prime Cost 190000
Works Overhead Charges 60 60000
Cost of goods sold 250 250000
Aministration and selling overhe 25 25000
Profit 25 25000
Sales 300 300000

Production Factory
ii) Estimated Statement of Cost of a unit
For the month of July, 2013

Particulars Per Unit CoTaka Taka

Raw materials used in June 140
Add: 10% Increase 14
Raw materials used in July 154
Direct wages in June 50
Add: 10% increase 5
Direct wages in July 55
Prime Cost 209
Works Overhead in June 60
Add: 5% increase 3
Works overhead in July 63
Cost of goods sold in July 272
Administration and selling overhead in Jun 25
Add: 20% increase 5
Administration and Selling overhead in Jul 30
Profit in July 25
Sales in July 327 Ans
 Raisa Fashion Limited
Statement of Cost of Goods Sold
For the year, 2014

Paticulars Taka Taka

Opening Raw Materials 7000
Add: Purchase of Raw Materials 118000
Less: Ending Raw Materials 15000
Direct Raw Materials in used 110000
Direct Labour 70000
Prime Cost 180000
Factory Overhead:
Indirect Labour 30000
Maintainance of Factory 6000
Insurance of Factory 800
Factory Rent 20000
Factory Supplies 4200
Depriciation of factory 19000
Total Factory Overhead 80000
Total Manufacturing Cost 260000
Add: Opening Work in process 10000
Less: Ending Work in Process 5000
Cost of Goods manufactured 265000
Add: Opening Finished Goods 20000
Less: Ending Finished Goods 35000
Cost of goods sold 250000

Raisa Fashion Limited

Income Statement
For the year, 2014

Paticulars Taka Taka

Sales Revenues 750000
Cost of goods sold 250000
Gross Profit 500000
Operating Expenses:
Advertisement Expense 90000
Sales Salaries 50000
Depriciation on office 3000
Maintainance of office 7500
Total Operating Expenses 150500
Net Profit 349500