Tanushree Jain - 80303190056

Gaurav Bhole- 80303190018

Disha Saxena- 80303190114
 Particulars 31st March, 2010 31st, March, 2011
Number of Units 1500000 units 2000000 units

Total Cost Cost per unit Total Cost Cost per unit
(in 000s) (in Rs.) (in 000s) (in Rs.)
Direct Materials 330000 220 396000 198
Direct Wages 270000 180 288000 144
Prime Cost 600000 400 684000 342
Factory overheads 325000 216.667 418333.333 209.167
Works Cost 925000 616.667 1102333.33 551.167
Administration
overheads 205000 136.667 123000 61.50
Cost of
production 1130000 753.333 1225333.33 612.667
Sales Overheads 90000 60 120000 60
Cost of sales 1220000 813.333 1345333.333 672.667
Profit 280000 186.667 195182.667 97.59
Sales 1500000 1000 1540516 770.25

0.18667 0.1267
Profit on sales ( %)
 Material : 20% * 330000 = 66000
Cost : (100-25)% * 220 = Rs.165
Total material cost = 165*2000 + 66000
= Rs.396000
 Factory OH : Fixed cost is 45000
Variable Cost : 325000 – 45000 = Rs.280000
VC p.u. : 280000/1500 = Rs.186.67
Total factory OH : Fixed cost + Variable cost
= 45000 + 186.666(2000)
= 45000 + 373332
= Rs.418332
 Profit on sales (%) for 2017 = 0.12666
Profit = 0.1266* Sales
 Cost of Sales + Profit = Sales
1345333.33 + 0.1266* Sales = Sales
0.8733 * Sales = 1345333.33
Sales = Rs.1540516
 Part-B

Particulars Jeans Skirts Handbags

Material Consumed
Stock on 1st April 200000 ……… ………
Add: Purchases during the year 600000 300000 100000
800000 300000 100000
Add: Carriage on purchases 12000 6000 2000
812000 306000 102000
Less: Stock on 31st March 150000 75000 25000
662000 231000 77000
Less: Sale of Material 25000 - -
Direct Labour (productive
wages) 300000 120000 180000
PRIME COST 937000 351000 257000
Works Overheads:
Salaries (Factory) 15350 10000 5000
Repairs of plant, machinery 8000 4000 1600
Rent, rates, insurance
(factory) 12000 6000 2000
Depreciation on plant etc. 9000 3000 2000
Dyeing and water charges
(factory) 3000 1500 500
Manager's salary
(40/48*18000) 10000 6900 5000
57350 31400 16100
Add: Opening Work-in-progress 100000 ……… ………
157350 31400 16100
Less: Closing Work-in-progress 35000 122350 10000 21400 5000 11100
WORKS COST/FACTORY COST 1059350 372400 268100

Office and Admin Overheads

Office Salaries 25000 15000 5000
Rent, rates, taxes etc. 2000 700 300
Depreciation of office
furniture 1800 400 200
Director's fees 15000 7000 3000
Gas and water charges
(office) 850 300 100
General charges 12750 5000 3000
Manager's Salary 8000 65400 5000 33400 2000 13600
COST OF PRODUCTION 1124750 405800 281700
Add: Opening stock of finished
stock 350000 ……… ………
1474750 4105800 281700
Less: Closing stock of finished
stock 450000 200000 120000
COST OF GOODS SOLD 1024750 205800 161700
Selling and distribution
overheads
Advertising 28000 21000 8750
Carriage on sales 13000 5000 2000
Travelling expenses 7000 5000 3000
Traveller's salaries and
commission 20000 68000 13000 44000 7000 20750
TOTAL COST/ COST OF SALES 1092750 249800 182450
Thank you