SRI ANJANEYA
COST ACCOUNTING
UNIT-1: COSTSHEET
UNIT-2: MATERIALS
UNIT-3: LABOUR
UNIT-4: OVERHEADS
UNIT-5: CONTRACT COSTING
PREPARED BY:
TAKKELLA PUNNAIAH CHOWDARY
TAKKELLA PUNNAIAH CHOWDARY Page 1
UNIT-I
COSTSHEET
1.Find out sales from the below information?
A. cost of material 6, 00,000
B. wages 5, 00,000
C. Factory overheads 3, 00,000
D. Administration charges 3, 36,000
E. Selling charges 2, 24,000
F. Distribution charges 1, 40,000
G. Profit 4, 20,000
Cost sheet Amount Amount
Particulars 6,00,000
Material 5,00,000 11,00.000
Add: wages 3,00,000
Prime Cost 2,24,000
Add: Factory overheads(or) Work Overheads 1,40,000 14,00,000
3,36,000
Factory over heads
Factory cost (OR) Works Cost 17,36,000
Add: Office& Administration Overheads
3,64,000
Administration charges 21,00,000
Cost of Production
Add: Selling& Distribution Overheads
Selling charges
Distribution Charges
Cost of goods sold (OR) Cost of Sales
Add: Profit 4,20,000
25,20,000
Sales
2. Find out profit from the below information?
Direct materials 90,000
Direct wages 75,000
Factory over heads 45,000
Selling and distribution overheads 52,500
Administration over heads 42,000
Sales 3, 65,000.
Cost sheet
Particulars Amount Amount
Direct Material 90,000 1,65,000
Add: Direct wages 75,000 45,000
2,10,000
Prime Cost
42,000
Add: Factory overheads(or) Work Overheads 2,52,000
Factory over heads
Factory cost (OR) Works Cost
Add: Office& Administration Overheads
Administration Overheads
Cost of Production
TAKKELLA PUNNAIAH CHOWDARY Page 2
Add: Selling& Distribution Overheads 52,500 52,500
Selling and Distribution Charges
3,04,500
Cost of goods sold (OR) Cost of Sales 60,500
Add: Profit
3,65,000
Sales
3. The following information prepare cost sheet?
Raw materials 20,000 Raw materials purchases 37,000
2,500
Direct wages 28,500 Factory rent & rates 1,000
400
Office rent rates 500 Plant repair & maintenances 1,600
200
Plant depreciation 1,250 Factory lighting heating 150
2,500
Factory manager salary 2,000 Office salary
1, 16,000.
Directors remuneration 1,500 Telephone & postage
Printing & stationary 100 Legal charges
Advertisement 1,500 Sales men salary
Show room rent 500 Sales
Cost sheet Amount Amount
Particulars 20,000 85,500
Raw Material 37,000
Add: Raw Material Purchased 28,500
Direct wages
Prime Cost
Add: Factory overheads(or) Work Overheads 1,250 7,150
Plant depreciation 2,000
Factory manager salary 2,500
Factory Rent and Rates 1,000
Plant Repair& Maintenance
Factory Lighting and Heating 400
Factory cost (OR) Works Cost 92,650
Add: Office& Administration Overheads 500 4050
Office Rent&Rates 1,500
Directors Remuneration 1,600
Office Salary
Telephone & Postage 200
Legal Charges 150
Printing& Stationery 100
Cost of Production 96,700
Add: Selling& Distribution Overheads 1,500 4,500
Advertisement 500
Showroom Rent
Sales Men Salary 2,500
Cost of goods sold (OR) Cost of Sales 1,01,200
TAKKELLA PUNNAIAH CHOWDARY Page 3
Add: Profit 14,800
Sales 1,16,000
4.From the following particulars of a manufacturing company for the month of 12/2007.Prepare
cost sheet.
Raw materials 66,000 productive wages 70,000
Other direct wages 6,000 UN productive wages 21,000
Rent and taxes stationary
Factory 15,000 factory 1,400
Office 1,000 office 1,800
Factory lighting 4,400 Factory heating 3,000
Motive power 8,800 Factory rent 6,000
Director fees Factory cleaning 1,000
Works 2,000 Sundry office expenses 400
Office 4,000 Estimating expenses 1,600
Loose tools return of 1,200 Water supply 2.400
Insurances Legal expenses 800
Factory 2,200 Rent of ware house 600
Office 1,000 Depreciation of plant & machinery 4,000
Dep of office building 2,000 Depreciation of delivery van 400
Bad debts 200 Advertising 600
Sales dept salary 3,000 up keep of delivery van 1,400
Bank charges 200 commissions on sales 3,000
The total out put for the month was 20,000 units.
Sales 20,000 units @15/- per unit.
Cost for the year ending 12/2007
Particulars Amount Amount
1,42,000
Raw Material 60,000
Add: Productive Wages 70,000
Other Direct wages 6,000
Prime Cost
Add: Factory overheads(or) Work Overheads 15,000 74,000
Factory Rent and Taxes 4,400
Factory Lighting 8,800
Motive power 2,000
Factory works director fees 1,200
Factory loose tools return off 2,200
Factory insurance 21,000
Un productive wages 1,400
Factory stationery 3,000
Factory heating 6,000
Factory Rent 1,000
Factory cleaning 1,600
Estimating Expense 2,400
Water supply 4000
Depreciation on Plant& Machinery
Factory cost (OR) Works Cost 2,16,000
TAKKELLA PUNNAIAH CHOWDARY Page 4
Add: Office& Administration Overheads 1,000 11,000
Office Rent&Rates 4,000
Office directors fees 1,000
Office insurance 2,000
Depreciation on Office building 1,800
Office Stationery
Sundry office expenses 400
Legal Expense 800
Cost of Production 2,27,000
Add: Selling& Distribution Overheads 200 9,200
Bad debts 3,000
Sales Dept salary
Rent of warehouse 600
Depreciation on Delivery van 400
Advertisement 600
Up keep delivery van 1,400
Commission on Sales 3,000
Cost of goods sold (OR) Cost of Sales 2,36,200
Add: Profit 63,800
3,00,000
Sales
5.From the following particulars prepare a cost sheet showing a different element of a cost for
The year ending 31/12/2004.
Cost of materials 1, 60,000 wages 2, 40.000
Manufacturing expenses 1, 00,000 Salaries 1, 20,000
Rent, rates, tax insurance 20,000 Selling expenses 60,000
General expenses 40,000 Sales 8, 00,000.
Cost sheet for the year ending 31/12/2004
Particulars Amount Amount
4,00,000
Cost of Material 1,60,000
Add: wages 2,40,000
Prime Cost
Add: Factory overheads(or) Work Overheads 1,00,000 1,00,000
Manufacturing Expenses
Factory cost (OR) Works Cost 5,00,000
Add: Office& Administration Overheads 20,000 1,80,000
Rent&Rates, Tax Insurance 40,000
General Expenses 1,20,000
Salaries
Cost of Production 6,80,000
Add: Selling& Distribution Overheads
TAKKELLA PUNNAIAH CHOWDARY Page 5
Selling Expense 60,000 60,000
Cost of goods sold (OR) Cost of Sales 7,40,000
Add: Profit 60,000
8,00,000
Sales
6.From the following particulars prepare a cost sheet for the year ending 31/12/2006.
Purchases of raw materials 9, 50,000 carriage in wards 25,000
Wages 3, 50,000 Works manger salary 60,000
Factory employ salary 1, 20,000 Power expenses 19,000
Factory rent, rate and insurance 14,500 other production expenses 85,000
General expenses 65,000 Income tax 5,500
Dividends 1,000 Dividends interest 50,000
Goodwill 10,000 Payment of sales tax 16,000
Sales for the year 17, 20,000.
Cost sheet for the year ending 31/12/2006
Particulars Amount Amount
Purchases of Raw Material 9,50,000
Add: Wages 3,50,000
Carriage Inwards 25,000
Prime Cost 13,25,000
Add: Factory overheads(or) Work Overheads 1,20,000 2,98,500
Factory employee salary 14,500
Factory Rent, Rates and insurance 60,000
Works manager salary 19,000
Power expenses 85,000
Other production expenses
Factory cost (OR) Works Cost 16,23,500
Add: Office& Administration Overheads 65,000 65,000
General Expenses
Cost of Production 16,88,500
00
Add: Selling& Distribution Overheads
Selling Expenses
Cost of goods sold (OR) Cost of Sales 16,88,500
Add: Profit 31,500
17,20,000
Sales
TAKKELLA PUNNAIAH CHOWDARY Page 6
7. From the books mr. swami associate ltd. From the following transactions prepare cost sheet
For 2002.
Stock of material (1/1/2002) 20,000 Purchases of materials 5, 50,000
Returns of goods 11,000 Stock of finished goods (1/1/2002) 25,000
Productive wages 2, 50,000 Works over head charges 75,000
Office & general expenses 50,000 Stock of materials (31/12/2002) 70,000
Stock of finished goods (31/12/2002) 30,000 finished goods sold 12, 00,000.
Cost sheet for the year ending 31/12/2002
Particulars Amount Amount
Opening stock of Raw material 20,000
Add: Purchase of Raw material 5,50,000
5,70,000
Less: Return of goods 11,000
5,59,000
Less: Closing Stock of Raw Material 70,000
Raw material Consumed 4,89,000
Add: Direct Wages 2,50,000
7,39,000
Prime Cost
Add: Factory overheads(or) Work Overheads 75,000 75,000
Work overheads
Factory cost (OR) Works Cost 8,14,000
Add: Office& Administration Overheads 50,000 50,000
Office General expenses
Cost of Production 8,64,000
Add: Opening stock of finished goods 25,000
Less: Closing stock of finished goods 8,89,000
30,000
Cost of goods sold 8,59,000
Add: Selling& Distribution Overheads 0 00000
Selling Expenses
Cost of Sales 8,59,000
Add: Profit 3,41,000
12,00,000
Sales
8. From the following information prepare cost sheet?
Stock of raw materials (1-1-2008) 30,850 production over heads 1, 42,800
Work in progress (1-1-2008) 60,850 General overheads 1, 12,700
Purchases of raw materials 1, 43,250 stock of raw materials (31/12/2008) 37,700
TAKKELLA PUNNAIAH CHOWDARY Page 7
Direct wages 1, 78,500 Work in progress (31/12/2008) 67,750
Sales for the year 8, 60,625.
Cost sheet for the year ending 31-12-2008
Particulars Amount Amount
Opening stock of Raw material 30,850
Add: Purchase of Raw material 1,43,250
1,74,100
Less: Closing Stock of Raw Material 37,700
Raw material Consumed 1,36,400
Add: Direct Wages 1,78,500
Prime Cost 3,14,900
Add: Factory overheads(or) Work Overheads 1,42,800 1,35,900
Production over heads 60,850
Add: Opening stock of work-in-progress 2,03,650
67,750
Less: Closing stock of work-in-progress
Factory cost (OR) Works Cost 4,50,800
Add: Office& Administration Overheads 1,12,700
General overheads
Cost of Production 5,63,500
Add: Selling& Distribution Overheads 0 00000
Selling Expenses
Cost of Sales 5,63,500
Add: Profit 2,97,125
8,60,625
Sales
9. Prepare cost sheet?
Purchases of raw materials 1, 32,000 Direct wages 1, 10,000
Rent, rates insurance & works on cost 44,000 Carriage in wards 15,584
Stock on (1/1/2010) Stock on (30/12/2010)
Raw materials 22,000 Raw materials 24,464
Work in progress 5,280 Work in progress 17,600
Finished goods 17,600 Finished goods 35,200
Cost of factory supervision 8,800. Sale of finished goods 3, 30,000.
Cost sheet for the year ending 31-12-2010
Particulars Amount Amount
Opening stock of Raw material 22,000
Add: Purchase of Raw material 1,32,000
TAKKELLA PUNNAIAH CHOWDARY Page 8
Less: Closing Stock of Raw Material 1,54,000
24,464
Raw material Consumed 1,29,536
Add: Direct Wages 1,10,000
Carriage in wards 15,584
2,55,120
Prime Cost
Add: Factory overheads(or) Work Overheads 44,000
Rent& rates and insurance& works cost 8,800
Factory supervision 5,280
58080
Add: Opening stock of work-in-progress
17,600
Less: Closing stock of work-in-progress 40,480
2,95,600
Factory cost (OR) Works Cost
Add: Office& Administration Overheads
Cost of Production
Add: Opening stock of finished goods 17,600
3,13,200
Less: Closing stock of finished goods
35,200
Cost of goods sold
2,78,000
Add: Selling& Distribution Overheads
Selling Expenses 00000
Cost of Sales 2,78,000
Add: Profit 52,000
3,30,000
Sales
10. Prepare cost sheet?
Opening stock: Closing stock:
Raw materials 5,000 Raw materials 4,000
Finished goods 4,000 Finished goods 5,000
Raw materials purchased 50,000 Wages paid to labours 2,000
2,000
Chargeable expenses 2,000 Rent& rates, taxes 5,000
1,000
Power 5,000 Factory lighting 2,000
2,000
Factory insurance Experiment expenses 4,000
Office manager salary Office printing& stationary 2,000
Sales man salary Commission of travelling agency 1,000
Sales 1, 00,000.
TAKKELLA PUNNAIAH CHOWDARY Page 9
Cost sheet Amount Amount
Particulars 5,000
Opening stock of Raw material 50,000
Add: Purchase of Raw material 55,000
4,000
Less: Closing Stock of Raw Material
Raw material Consumed 51,000
Add: Direct Wages 2,000
2,000
Chargeable expense
Prime Cost 55,000
Add: Factory overheads(or) Work Overheads 2,000 9,000
Power 1,000
Factory insurance 2,000
Factory lighting 4,000
Experiment Expense
Factory cost (OR) Works Cost 64,000
Add: Office& Administration Overheads 5,000 12,000
Office manger salary 2,000
Office printing and stationery 5,000
Rent, Rates & insurance
Cost of Production 76,000
Add: Opening stock of finished goods
4,000
80,000
Less: Closing stock of finished goods 5,000
Cost of goods sold 75,000
Add: Selling& Distribution Overheads 2,000 3,000
Sales men salary 1,000
Commission of travelling agency
Cost of Sales 78,000
Add: Profit 22,000
1,10,000
Sales
11. From the following transactions prepare cost sheet
Stock of material (1/1/2002) 20,000 Purchases of materials 5, 50,000
Returns of goods 11,000 Stock of finished goods (1/1/2002) 25,000
Productive wages 2, 50,000 Works over head charges 75,000
Office & general expenses 50,000 Stock of materials (31/12/2002) 70,000
Stock of finished goods (31/12/2002) 30,000 Work in progress (1/1/2002) 10,000
TAKKELLA PUNNAIAH CHOWDARY Page 10
Work in progress (31/12/2002) 25,000 Sales 12, 00,000
Page 11
Cost sheet for the year ending 31-12-2002
Particulars Amount Amount
Opening stock of Raw material 20,000
Add: Purchase of Raw material 5,50,000
5,70,000
Less: Return of goods 11,000
5,59,000
Less: Closing Stock of Raw Material 70,000
Raw material Consumed 4,89,000
Add: Direct Wages 2,50,000
7,39,000
Prime Cost
Add: Factory overheads(or) Work Overheads 75,000 60,000
Work overhead charges 10,000 7,99,000
85,000
Add: Opening stock of work-in-progress 25,000
Less: Closing stock of work-in-progress
Factory cost (OR) Works Cost
Add: Office& Administration Overheads 50,000 50,000
Office General expenses
Cost of Production 8,49,000
Add: Opening stock of finished goods 25,000
Less: Closing stock of finished goods 8,74,000
30,000
Cost of goods sold 8,44,000
Add: Selling& Distribution Overheads 0 00000
Selling Expenses
Cost of Sales 8,44,000
Add: Profit 3,56,000
12,00,000
Sales
12. From the following information prepare cost sheet?
Stock on hand (1/1/2000) Purchases of raw material 21,900
Raw materials 25,000 Work in progress (1/1/2000) 8,220
Finished goods 17360 Work in progress (31/1/2000) 9,100
Stock on hand (31/12/2000) Sales of finished goods 72,310
Raw materials 26,250 direct wages 17,150
TAKKELLA PUNNAIAH CHOWDARY
Finished goods 15,750 Non productive wages 830
Work expenses 8,340 Office and administration expenses 3,160
Selling and distribution expenses 4,210.
Cost sheet for the year ending 31-12-2000
Particulars Amount Amount
Opening stock of Raw material 25,000
Add: Purchase of Raw material 21,900
46,900
Less: Closing Stock of Raw Material 26,250
Raw material Consumed 20,650
Add: Direct Wages 17,150
Prime Cost 37,800
Add: Factory overheads(or) Work Overheads 8,340 8,290
Work Expense 830
Non Productive Wages
9,170
Add: Opening stock of work-in-progress 17,390
Less: Closing stock of work-in-progress 9,100
Factory cost (OR) Works Cost 46,090
Add: Office& Administration Overheads 3,160 3,160
Office and administration expense
Cost of Production 49,250
Add: Opening stock of finished goods 17,360
Less: Closing stock of finished goods 66,610
15,750
Cost of goods sold 50,860
Add: Selling& Distribution Overheads 4,210 4,210
Selling Expenses
Cost of Sales 55,070
Add: Profit 17,240
Sales 72,310
Scrap Method:
13. From the following information prepare a cost sheet?
Raw material purchased 32,250 Carriage on purchases 850
Direct wages 18,450 Factory over heads 2,750
Selling over heads 2,450 Office over heads 1,850
Sales 75,000 Sale of factory scraps 250
Opening stock of finished goods 9,750 Closing stock of finished goods 11,100
TAKKELLA PUNNAIAH CHOWDARY Page 12
Cost sheet Amount Amount
Particulars 32,250 51,550
18,450
Purchases of raw material 850
Add: Direct wages
Carriage on purchases
Prime Cost
Add: Factory overheads(or) Work Overheads 2,750 2,500
Factory overheads 250
Less: Sale of scrap
Factory cost (OR) Works Cost 54,050
Add: Office& Administration Overheads 1,850 1,850
Office overheads
Cost of Production 55,900
Add: Opening stock of finished goods 9,750
65,650
Less: Closing stock of finished goods 11,100
Cost of goods sold 54,550
Add: Selling& Distribution Overheads 2,450 2,450
Selling Expense
Cost of Sales 57,000
Add: Profit 18,000
75,000
Sales
14. From the following information prepare a cost sheet?
Opening balances Closing balances
Raw material 25,000 Raw materials 40,000
Work in progress 1,000 Work in progress 500
Finished goods 2,000 Finished goods 1,000
Direct wages 75,000 Carriage in wards 5,000
Purchased of raw material 85,000 Indirect wages 10,000
Direct charges 15,000 Rent and rates
In direct materials 500 factory 5,000
Other factory expenses 5,700 office 500
Pre paid income tax 15,000 Bad debts 1,000
Salaries
Office 2,500 Other office expenses 900
Godown 2,000 Travelling expenses 1,100
Depreciation Manager remuneration 12,000
Plant & machinery 1,500 Advertisement 2,000
TAKKELLA PUNNAIAH CHOWDARY Page 13
Furniture 100 Carriage out wards 1,000
Sales 2, 50,000
Manager’s remuneration is to be collected 4,000 to factory 2,000 to office and 6,000 to sales
department.
Cost sheet for the year ending 31-12-2008
Particulars Amount Amount
Opening stock of Raw material 25,000
Add: Purchase of Raw material 85,000
1,10,000
Less: Closing Stock of Raw Material 40,000
Raw material Consumed 70,000
Add: Direct Wages 75,000
Carriage in wards 5,000
Direct charges 15,000
Prime Cost 1,65,000
Add: Factory overheads(or) Work Overheads 500 27,200
Indirect Materials 10,000
Indirect wages
Factory rent and rates 5,000
Other factory expense 5,700
Depreciation on plant and machinery 1,500
Manager remuneration 4,000
26,700
Add: Opening stock of work-in-progress 1,000
27,700
Less: Closing stock of work-in-progress
500
Factory cost (OR) Works Cost 1,92,200
Add: Office& Administration Overheads 2,500 6,000
Office salary 100
Depreciation on furniture
Manager remuneration 2,000
Office rent and rates 500
Office expenses 900
Manager remuneration
2,000
Cost of Production 1,98,200
Add: Opening stock of finished goods 2,000
Less: Closing stock of finished goods 2,00,200
1,000
Cost of goods sold 1,99,200
Add: Selling& Distribution Overheads 2,000
Godown salary 1,000
Bad debts
Page 14
TAKKELLA PUNNAIAH CHOWDARY
Travelling expenses 1,100 13,100
Manager remuneration 6,000
Advertisement 2,000
Carriage outwards 1,000
Cost of Sales 2,12,300
Add: Profit 37,700
2,50,000
Sales
Valuation of closing stock of finished goods:
15. Thirupati electronics ltd produced a standard product and provided following information for
the year ending 31/03/2005.
Raw materials: Purchase of raw materials 85,000
Opening stock 10,000 Direct wages 20,000
Closing stock 4,000 other direct wages 10,000
Factory over heads 20,000 Office over heads 14,100
Selling over heads 2/- per unit. Finished goods:
Opening stock 1,000 units 16,000/-.
Produced during the year 10,000 units.
Units sold 9,000 units sales 1, 97,600.
Prepare cost sheet for the year ending 31/3/2005.
Calculation of closing stock of Finished Goods:
No.of units produced =10,000
Add: Opening stock of finished goods (units) = 1,000
11,000
Less: Units Sold (units) 9,000
Closing stock of finished goods (units) = 2,000
Cost sheet for the year ending 31-12-2005
Particulars Amount Amount
Opening stock of Raw material 10,000
Add: Purchase of Raw material 85,000
95,000
Less: Closing Stock of Raw Material 4,000
Raw material Consumed 91,000
Add: Direct Wages 20,000
10,000
Other direct wages
1,21,000
Prime Cost
Add: Factory overheads(or) Work Overheads 20,000 20,000
Factory overheads
Factory cost (OR) Works Cost 1,41,000
Add: Office& Administration Overheads
TAKKELLA PUNNAIAH CHOWDARY Page 15
Office overheads 14,100 14,100
Cost of Production 1,55,100
Add: Opening stock of finished goods 16,000
Less: Closing stock of finished goods 1,71,100
31,020
2,000-----?
10,000----- 1,55,100= 1,51,100 X 2000 1,40,080
10,000
Cost of goods sold
Add: Selling& Distribution Overheads 18,000
Units sold X Rate Per Unit
9000 X 2 1,580,80
Cost of Sales
39,520
Add: Profit 1,97,600
Sales
16. From the following cost data prepare cost sheet from the year ending 31/12/2003.
Purchases of raw materials 1, 20,000 Works over heads 48,000
Direct wages 1, 00,000 Carriage on purchases 1,440
Stock (1/7/2003) Stock (31/12/2003)
Raw material 20,000 Raw materials 32,000
Finished product (1000 tones) 16,000 Finished goods 22,240
Work in progress 4,800 Work in progress 16,000
Sale of finished goods 3, 00,000 Selling & distribution over heads 15,000
Cost sheet for the year ending 31-12-2003
Particulars Amount Amount
Opening stock of Raw material 20,000
Add: Purchase of Raw material 1,20,000
1,40,000
Less: Closing Stock of Raw Material 32,000
Raw material Consumed 1,08,000
Add: Direct Wages 1,00,000
Carriage in purchases 1,440
Prime Cost 2,09440
Add: Factory overheads(or) Work Overheads 48,000
Rent& rates and insurance& works cost
Add: Opening stock of work-in-progress 4,800 36,800
Less: Closing stock of work-in-progress 52,800
16,000
Factory cost (OR) Works Cost 2,46,200
TAKKELLA PUNNAIAH CHOWDARY Page 16
Add: Office& Administration Overheads
Cost of Production
Add: Opening stock of finished goods 16,000
Less: Closing stock of finished goods 2,62240
22,240
Cost of goods sold
Add: Selling& Distribution Overheads 15,000 2,40,000
Selling Expenses
15,000
Cost of Sales
2,55,000
Add: Profit
45,000
Sales 3,00,000
17. Prepare the cost sheet to show the total cost of production of goods manufacture by a
company for the of july-2006 find out the cost of sales and profit?
Stock of raw materials (1/7/2006) 3,000
Raw material purchased 28,000
Stock of raw materials (31/7/2006) 4,500
Manufacturing wages 7,000
Depreciation of plant 1,500
Loss on sale of a part of plant 300
Factory rent and rates 3,000
Other rent 500
General expenses 400
Discount on sales 300
Advertisement expenses 600
Income tax paid 2,000
Sales 50,000
The number of units produce during July 2006 was 3,000. the stock of finished goods was
200and 400 units on 1/7/2006 and 31/7/2006 respectively. The total cost of the units on hand on
1/7/2006 was Rs. 2,800. All this head been sold during the month.
Calculation of units sold:
No.of units produced = 3,000
Add: Opening stock of finished goods (units) = 200
3,200
Less: Closing stock of finished goods (units) = 400
Units Sold (units) = 2,800
TAKKELLA PUNNAIAH CHOWDARY Page 17
Cost sheet for the year ending 31-07-2006
Particulars Amount Amount
Opening stock of Raw material 3,000
Add: Purchase of Raw material 28,000
31,000
Less: Closing Stock of Raw Material 4,500
Raw material Consumed 26,500
Add: Manufacturing Wages 7,000
Prime Cost 33,500
Add: Factory overheads(or) Work Overheads 1,500 4,500
Depreciation on plant 3,000
Factory rent
Factory cost (OR) Works Cost 38,000
Add: Office& Administration Overheads 500
Other rent 400 900
General Expense
Cost of Production 38,900
Add: Opening stock of finished goods 2,800
41,700
Less: Closing stock of finished goods 5,187
400-----? 38,900X 400
3,000----- 38,900= 3,000
Cost of goods sold 36,513
Add: Selling& Distribution Overheads 300
Direct sales 600 900
Advertisement Expenses
Cost of Sales 37,413
Add: Profit 12,587
50,000
Sales
18. Prepare cost sheet from the following information relating to article?
A stock on (1/1/2003) 4,000
Finished good 400 units 3,000 office & administration expenses 1,600
Purchases of raw materials 24,000 Direct wages 20,000
Works over heads 8,400 Work in progress (1/1/2003) 960
Stock (31/12/2003) Work in progress (31/12/2003) 3,200
Raw materials 4,400 finished goods 800 units.
Sale of finished product 60,000.
Selling expenses for calculated at 0.20 paisa per unit. Total production during 2003 was 6400
units.
TAKKELLA PUNNAIAH CHOWDARY Page 18
Calculation of units sold:
No.of units produced = 6,400
Add: Opening stock of finished goods (units) = 400
6,800
Less: Closing stock of finished goods (units) = 800
Units Sold (units) = 6,000
Cost sheet for the year ending 31-12-2003
Particulars Amount Amount
Opening stock of Raw material 4,000
Add: Purchase of Raw material 24,000
28,000
Less: Closing Stock of Raw Material 4,400
Raw material Consumed 23,600
Add: Direct Wages 20,000
Prime Cost 43,600
Add: Factory overheads(or) Work Overheads 8,400
works overheads
Add: Opening stock of work-in-progress 960 6,160
Less: Closing stock of work-in-progress 9,360
3200
Factory cost (OR) Works Cost 49,760
Add: Office& Administration Overheads 1,600 1,600
Office overheads
Cost of Production 51,360
Add: Opening stock of finished goods 3,000
54,360
Less: Closing stock of finished goods
800-----? 6,420
6,400----- 51,360= 51,360 X 800
6,400
47,940
Cost of goods sold
Add: Selling& Distribution Overheads 1,200 1,200
Units sold X Rate Per Unit
6000 X 0.20
Cost of Sales 49,140
Add: Profit 10,860
60,000
Sales
TAKKELLA PUNNAIAH CHOWDARY Page 19
19. From the following information prepare cost sheet for half year ended 30/6/08.
Purchase of raw materials 1,32,000 Direct wages 1,10,000
Rent and rates ,insurance and works on cost 44,000
Carriage in wards 1,584
Stock on (1/1/2008) Stock on (30/6/08)
Raw materials 22,000 Raw materials 24.464
Finished products(1600 tones) 17,600 Finished products (3,200 units)
Work in progress (1/1/2008) 5,280 Work in progress (30/6/2008) 17600
Cost of super vision 8,800 Sales of finished production 3, 30,000
Advertising& other selling expenses as 0.70 paisa per tonne sold 25,600 tonnes of the finished
Products were produced during the year.
Calculation of units sold:
No.of units produced = 25,600
Add: Opening stock of finished goods (units) = 1,600
27,200
Less: Closing stock of finished goods (units) = 3,200
Units Sold (units) = 24,000
Cost sheet for the year ending 30-06-2008
Particulars Amount Amount
Opening stock of Raw material 22,000
Add: Purchase of Raw material 1,32,000
1,54,000
Less: Closing Stock of Raw Material 24,464
Raw material Consumed 1,29,536
Add: Direct Wages 1,10,000
Carriage inwards 1,584
Prime Cost 2,41,120
Add: Factory overheads(or) Work Overheads 44,000
Rent, rates and insurance and works on cost
Add: Opening stock of work-in-progress 5,280 31,680
Less: Closing stock of work-in-progress 49,280
17,600
Factory cost (OR) Works Cost 2,72,800
Add: Office& Administration Overheads 8,800 8,800
Cost of supervision
Cost of Production 2,81,600
Add: Opening stock of finished goods 17,600
2,99,200
Less: Closing stock of finished goods
3,200-----? 35,200
TAKKELLA PUNNAIAH CHOWDARY Page 20
25,600----- 2,81,600= 2,81,600 X3,200
25,600
Cost of goods sold 2,64,000
Add: Selling& Distribution Overheads 16,800 16,800
Units sold X Rate Per Unit
24,000 X 0.70
Cost of Sales 2,80,800
Add: Profit 49,200
3,30,000
Sales
20. From the following information of A for the half year ending 31/12/2004.
Purchases of raw materials 24,000
Works over heads 20,000
Stock on (1/1/2004) Stock on (31/12/04)
Raw materials 4,000 Work in progress 3,200
Finished goods (800 quintals) 3,200 office and administration 1,600
Work in progress 960 Sales 60,000
Advertising, discount allowed and the selling cost is 0.40 paisa per quintal during the month
12,800 quintals of the commodity were produced.
Calculation of units sold:
No.of units produced = 12,800
Add: Opening stock of finished goods (units) = 800
Units Sold (units) = 13,600
Cost sheet for the year ending 31-12-2004
Particulars Amount Amount
Opening stock of Raw material 4,000
Add: Purchase of Raw material 24,000
Raw material Consumed 28,000
Prime Cost 28,000
Add: Factory overheads(or) Work Overheads 20,000
Work overheads
Add: Opening stock of work-in-progress 960 17,760
Less: Closing stock of work-in-progress 20,960
3,200
Factory cost (OR) Works Cost 45,760
Add: Office& Administration Overheads 1,600 1,600
Office& Administration
Cost of Production 47,360
TAKKELLA PUNNAIAH CHOWDARY
Page 21
Add: Opening stock of finished goods 3200
50,560
Cost of goods sold
5,440 5,440
Add: Selling& Distribution Overheads
Advertising, discount allowed 56,000
Units sold X Rate Per Unit
13,600 X 0.40 4,000
Cost of Sales 60,000
Add: Profit
Sales
UNIT COST:
Unit cost = Total Cost
No.Of Units Produced
21. Sri Sukumar furniture’s the following data relating to the manufacturing of manufacturing of
standardProducts during the month of January 2002.
Raw material consumed 20,000
Direct labour 10,000
Machine worked 1,000 hours, machine hour rate Rs. 5.
Administration over heads 20% on works cost
Selling overheads 0.50 paisa per unit.
Direct expenses 5,000
Units produced 24000 units.
Units sold 20000 units.
Selling per unit Rs. 3.
You’re requested to prepare a cost sheet from the above showing 1. Cost per unit 2. Profit Per
unit sold 3. Profit for the period.
Calculation of closing stock of Finished Goods:
No.of units produced =24,000
Less: Units Sold (units) 20,000
Closing stock of finished goods (units) = 4,000
Cost sheet for the year ending 31-01-2002
Particulars Amount Amount Unit Cost
0-83
Raw material consumed 20,000 0-47
0-20
Direct labour 10,000
Direct Expenses 5,000
Prime cost 35,000 1-45
Add: Factory overheads(or) Work Overheads 5,000 5,000 0-20
Machine worked X Machine hour rate Page 22
1,000 X5
TAKKELLA PUNNAIAH CHOWDARY
Factory cost (OR) Works Cost 8,000 40,000 1-66
Add: Office& Administration Overheads 8,000 0-34
48,000 2-00
Administration over heads 20% on works cost
40,000 x 20/100
Cost of Production
Less: Closing stock of finished goods 8,000
4,000-----?
24,000----- 48,000= 48,000 X 4,000
24,000
Cost of goods sold 40,000 2-00
Add: Selling& Distribution Overheads 10,000 0-50
Selling overheads 0.50 paisa per unit.
Units sold X Rate Per Unit
20,000 X 0.50
Cost of Sales 50,000 2-50
Add: Profit
10,000 0-50
Sales 60,000 3-00
22. X ltd manufactured 15000 units of product during the month of an April. While only 13,500
units were sold. The selling price of Rs.7 per unit. The following figures or obtained from the
costing record of the company.
Direct material 52,000
Direct wages 15,600
Machine hour rate Rs.
Machine worked 1,100
Office over head 15% on work cost
Selling over head 0.25 paisa per unit.
Pre pare cost sheet showing cost and profit for the month.
Calculation of closing stock of Finished Goods:
No.of units produced = 15,000
Less: Units Sold (units) = 13,500
Closing stock of finished goods (units) = 1,500
Cost sheet
Particulars Amount Amount Unit Cost
3-46
Direct Material 52,000 1-04
Direct Wages 15,600
Prime cost 67,600 4-50
Add: Factory overheads(or) Work Overheads 4,400 4,400 0-29
Machine worked X Machine hour rate 72,000 4-80
1,100 X4 0-72
Factory cost (OR) Works Cost 10,800 10,800
Add: Office& Administration Overheads
office over heads 15% on works cost
TAKKELLA PUNNAIAH CHOWDARY Page 23
72,000 x 15/100 82,800 5-52
Cost of Production
Less: Closing stock of finished goods 8,280
1,500-----?
15,000----- 82,800= 82,800 X 1,500 74,520 5-52
15,000 3,375 0-25
5-77
Cost of goods sold 77,895
Add: Selling& Distribution Overheads
Selling overheads 0.50 paisa per unit.
Units sold X Rate Per Unit
13,500 X 0.25
Cost of Sales
Add: Profit 16,605 1-23
7-00
Sales (13,500*7) 94500
23. 2012 July Exam Problem:
Prepare cost sheet showing a) Cost per Unit
b) Profit for the period
Raw Material consumed 15,000
Direct labour 9,000
Machine Hours Worked 900
Machine Hour Rate Rs. 5
Administration overheads 20% on works cost
Selling overheads 0.50 paisa per unit
Units produced 17,100
Units sold 16,000 units at Rs.4 per unit.
Calculation of closing stock of Finished Goods:
No.of units produced = 17,100
Less: Units Sold (units) = 16,000
Closing stock of finished goods (units) = 1,100
Cost sheet for the year ending 31-12-2008
Particulars Amount Amount Unit Cost
0-87
Raw Material Consumed 15,000 0-52
Direct Wages 9,000
Prime cost 24,000 1-40
Add: Factory overheads(or) Work Overheads 4,500 4,500 0-26
Machine worked X Machine hour rate 5,700 28,500 1-66
900 X 5 5,700 0-33
Factory cost (OR) Works Cost 34,200 2-00
Add: Office& Administration Overheads
Administration over heads 20% on works cost
28,500 x 20/100
Cost of Production
Less: Closing stock of finished goods 2,200
TAKKELLA PUNNAIAH CHOWDARY Page 24
1,100-----?
17,100----- 34,200= 34,200 X 1,100
17,100
Cost of goods sold 32,000 2-00
Add: Selling& Distribution Overheads
8,000 0-50
Selling overheads 0.50 paisa per unit.
Units sold X Rate Per Unit 40,000 2-50
24,000 1-50
16,000 X 0.50 64,000 4-00
Cost of Sales
Add: Profit
Sales (16,000*4)
24. A factory produces a standard product the following information is given to you from which
you are prepare cost sheet for the period ended 31/3/2009.
Opening stock 10,000 other direct expenses 10,000
Purchases 85,000 Factory over heads 100% of direct labour.
Closing stock 4,000 office over heads 10% of works cost.
Direct wages 20,000 selling & distribution expenses Rs.2 per unit.
Units of finished product:
In hand at the beginning period of units 1,000(value 16,000)
Produced during the period 10,000 units. In hand at the end of the period 2,000 units.
All so find out the selling price for the unit on the basis that profit mark up uniformly need To
yield a profit of 20% of the selling price. There was no working progress.
Calculation of units sold:
No.of units produced = 10,000
Add: Opening stock of finished goods (units) = 1,000
11,000
Less: Closing stock of finished goods (units) = 2,000
Units Sold (units) = 9,000
Cost sheet for the year ending 31-03-2009
Particulars Amount Amount Unit Cost
1-00
Opening stock of Raw material 10,000 8-50
9-50
Add: Purchase of Raw material 85,000 0-40
95,000
Less: Closing Stock of Raw Material 4,000
Raw material Consumed 91,000 9-10
Add: Direct wages 20,000 2-00
10,000 1-00
Direct Expense
Prime Cost 1,21,000 12-10
Add: Factory overheads(or) Work Overheads 30,000 30,000 3-00
Factory overheads 100% on direct labour
Direct wages+ direct expenses
TAKKELLA PUNNAIAH CHOWDARY Page 25
20,000+10,000=30,000 X 100 1,51,000 15-10
100 1-51
15,100 15,100 16-61
Factory cost (OR) Works Cost
1,66,100
Add: Office& Administration Overheads
Office overheads 10% on works cost 16,000
1,51,000 X 10 1,82,100
100
Cost of Production 33,220
Add: Opening stock of finished goods(1,000 units)
Less: Closing stock of finished goods 1,48,880 16-54
2,000-----?
10,000----- 1,66,100= 1,66,100 X 2,000
10,000
Cost of goods sold
Add: Selling& Distribution Overheads 18,000 18,000 2-00
Units sold X Rate Per Unit 18-54
9,000 X 2.00 1,66,800
41,700 4-63
Cost of Sales 23-16
2,08,500
Add: Profit 1,66,800x 20
80
Sales
25. Prepare cost and profit statement indicating per unit of product?
Raw material
Stock as in (1/1/2008) 10,000 Factory overheads 11,250
Stock as in (31/12/2008) 5,000 Office administration over heads 13,750
Purchases 75,000 Finished stock as on (1/1/2008) 250units Rs.5.60 per unit.
Direct labour 30,000 Finished stock as on (31/12/2008) 750 units.
Profit on sales 25%. Selling and distribution over head 0.50 paisa per unit sold.
Units produced 12,500 units.
Calculation of units sold:
No.of units produced = 12,500
Add: Opening stock of finished goods (units) = 250
12,750
Less: Closing stock of finished goods (units) = 750
Units Sold (units) = 12,000
Cost sheet for the year ending 31-12-2008
Particulars Amount Amount Unit Cost
0-80
Opening stock of Raw material 10,000 6-00
6-80
Add: Purchase of Raw material 75,000 0-40
85,000
Less: Closing Stock of Raw Material 5,000
TAKKELLA PUNNAIAH CHOWDARY Page 26
Raw material Consumed 80,000 6-40
Add: Direct Labour 30,000 2-40
1,10,000 8-80
Prime Cost
Add: Factory overheads(or) Work Overheads 11,250 11,250 0-90
Factory over heads
Factory cost (OR) Works Cost 1,21,250 9-70
Add: Office& Administration Overheads 13,750 13,750 1-10
Office overheads
Cost of Production 1,35,000 10-80
Add: Opening stock of finished goods(250 x5.60) 1,400
1,36,400
Less: Closing stock of finished goods
750-----? 8,100
12,500----- 1,35,000= 1,35,000 X 750
12,500
Cost of goods sold 1,28,300 10-69
Add: Selling& Distribution Overheads 6,000 6,000 0-50
Units sold X Rate Per Unit 1,34,300 11-19
12,000 X 0.50
Cost of Sales
Add: Profit 1,343,00 x 25 44767 3-73``
75 1,79,067 14-92
Sales
26. From the particulars prepare a monthly cost sheet of shop manufacturing?
Opening inventory (1/1/2008) Closing inventory (31/1/2008)
Raw materials 6,000 Raw materials 7,000
Work in progress 9,620 Work in progress 8,020
Finished products (1000 units) 13,680 finished goods ?
Donation to home 2,100 Raw materials purchases 72,000
Import duty on raw material 14,400 Productive wages 18,000
Machine hours worked 21,600 hours. Machine hour rate 1.50 paisa.
Chargeable expenses 2,000. Office and administration expenses Rs. 1 per unit.
Selling expenses 0.90 paisa per unit. Units sold 8,000 units.
Units produced 8,200 units. Profit on sales 10%.
TAKKELLA PUNNAIAH CHOWDARY Page 27
Calculation of closing stock of Finished Goods:
No.of units produced = 8,200
Add: Opening stock of finished goods (units) = 1,000
9,200
Less: Units Sold (units) 8,000
Closing stock of finished goods (units) =1,200
Cost sheet for the year ending 31-12-2008
Particulars Amount Amount Unit Cost
0-73
Opening stock of Raw material 6,000 8-78
9-51
Add: Purchase of Raw material 72,000 0-85
78,000
Less: Closing Stock of Raw Material 7,000
Raw material Consumed 71,000 8-66
Add: Direct Wages 18,000 2-19
14,400 1-75
Import duty on purchases
1,03,400 12-60
Prime Cost
Add: Factory overheads(or) Work Overheads 32,400 32,400 3-95
Machine worked X Machine hour rate
21,600 X 1-50
Factory cost (OR) Works Cost 1,35,800 16-55
Add: Office& Administration Overheads 8,200 8,200 1-00
Units produced x Rate Per unit 17-56
8,200 x1 1,44,000
Cost of Production 13,680
Add: Opening stock of finished goods(1,000 units) 1,57,680
21,073
Less: Closing stock of finished goods
1,200-----? 1,36,607 17-07
8,200----- 1,44,000= 1,44,000 X 1,200
8,200
Cost of goods sold
Add: Selling& Distribution Overheads 7,200 0-90
Units sold X Rate Per Unit 1,43,807 17-98
8,000 X 0.90 paisa
Cost of Sales 15,978 1-99
1,59,785 19-97
Add: Profit 1,43,807 x 10
90
Sales
TAKKELLA PUNNAIAH CHOWDARY Page 28
27. Prepare cost sheet and cost per unit for the profit?
Raw material consumed 1, 60,000 Direct wages 80.000
Factory over heads 16,000 Office over heads 10% on works cost.
Selling price Rs. 100 per unit. Selling over heads 12,000
Units produced 4000 units. Units sold 3,600
Calculation of closing stock of Finished Goods:
No.of units produced =4,000
Less: Units Sold (units) 3,600
Closing stock of finished goods (units) = 4, 00
Cost sheet
Particulars Amount Amount Unit Cost
Raw material consumed 1,60,000 2,40,000 40-00
Direct Wages 80,000 20-00
60-00
Prime cost
Add: Factory overheads(or) Work Overheads 16,000 16,000 4-00
Factory overheads 2.56,000 64-00
Factory cost (OR) Works Cost 6-40
25,600 25,600 70-40
Add: Office& Administration Overheads 2,81,600
Office over heads 10% on works cost
2,56,000 x 10/100
Cost of Production
Less: Closing stock of finished goods 28,160
4,00-----?
4,000----- 2,81,600= 2,81,600 X 400
4,000
Cost of goods sold 2,53,440 70-40
Add: Selling& Distribution Overheads
12,000 3-33
Selling overheads 2,65,440
73-73
Cost of Sales 94,560
3,60,000 26-27
Add: Profit 100-00
Sales
28. Thirupathi electronics ltd produced standard products & provides the following information
for the year ending 31/03/2005.
Opening stock of raw materials 10,000 Purchases 85,000
Closing stock of raw materials 4,000 Direct wages 20,000
Other direct expenses 20,000 Factory over heads 50% on direct wages
Office over heads 5% of works cost. Selling expenses Rs. 3 per unit.
Opening stock of finished goods 1000 units 18,000.
Produced during the year 10,000 units.
Closing stock 2000 units Profit 20% on the selling price.
TAKKELLA PUNNAIAH CHOWDARY Page 29
Calculation of units sold:
No.of units produced = 10,000
Add: Opening stock of finished goods (units) = 1,000
11,000
Less: Closing stock of finished goods (units) = 2,000
Units Sold (units) = 9,000
Cost sheet for the year ending 31-03-2005
Particulars Amount Amount Unit Cost
1-00
Opening stock of Raw material 10,000 8-50
9-50
Add: Purchase of Raw material 85,000 0-40
95,000
Less: Closing Stock of Raw Material 4,000
Raw material Consumed 91,000 9-10
Add: Direct wages 20,000 2-00
20,000 2-00
Direct Expense
Prime Cost 1,41,000 14-10
Add: Factory overheads(or) Work Overheads 20,000 20,000 2-00
Factory overheads 50% on direct labour 1,61,000 16-10
Direct wages+ direct expenses
20,000+20,000=40,000 X 50
100
Factory cost (OR) Works Cost
Add: Office& Administration Overheads 8,050 8,050 0-80
Office overheads 5% on works cost 16-90
1,61,000 X 5 1,69,050
100
Cost of Production 18,000
1,87,050
Add: Opening stock of finished goods(1,000 units)
Less: Closing stock of finished goods 37,410
2,000-----?
10,000----- 1,87,050= 1,87,050X 2,000 1,49,640 16-62
10,000
Cost of goods sold
Add: Selling& Distribution Overheads 27,000 27,000 3-00
Units sold X Rate Per Unit
9,000 X 3.00
Cost of Sales 1,76,640 19-62
Add: Profit 1,76,640x 20 44,160 4-91
80 2,20,800 24-53
Sales
TAKKELLA PUNNAIAH CHOWDARY Page 30
TENDERS, QUOTATIONS
29. In respect of a factory the following particulars have been extracted for the year 2007.
Cost of material 6, 00,000
Wages 5, 00,000
Factory over heads 3, 00,000
Administration charges 3, 36,000
Selling charges 2, 24,000
Distribution charges 1, 40,000
Profit 4, 20,000
A work order has to be executed in 2008 and the estimated expenses of the materials 8,000,
Wages 5,000. Assuming that in 2008 the rate of factory over head has gone up by 20%,
distribution charges Gone down by 10% and selling and administration charges have gone up
each by 15%. At what price should be the product sold. So has to earn the same rate of profit on
the selling price as in 2007. Factory over head s based on the wages and administration, selling
and distribution over heads on factory cost.
Cost sheet for the year ending 2007
Particulars Amount Amount
Material 6,00,000 11,00.000
3,00,000
Add: wages 5,00,000
14,00,000
Prime Cost 3,36,000
Add: Factory overheads(or) Work Overheads 17,36,000
Factory over heads 3,64,000
21,00,000
Factory cost (OR) Works Cost
Add: Office& Administration Overheads
Administration charges
Cost of Production
Add: Selling& Distribution Overheads
Selling charges 2,24,000
Distribution Charges 1,40,000
Cost of goods sold (OR) Cost of Sales
Add: Profit 4,20,000
25,20,000
Sales
Factory overheads percentages on direct wages: Factory over heads X100
Direct wages
Factory overheads percentages on direct wages: 3, 00,000 X100 = 60%
5, 00 000
Administration overheads percentages on factory cost: administration charges X100
Factory cost
Administration overheads percentages on factory cost: 3, 36,000 X100 = 67.2%
5, 00,000
Selling overheads percentages on factory cost: selling charges X100
Factory cost
Selling overheads percentages on factory cost: 2, 24,000 X100 =44.8%%
5, 00,000
TAKKELLA PUNNAIAH CHOWDARY Page 31
distribution overheads percentages on factory cost: distribution charges X100
Factory cost
Distribution overheads percentages on factory cost: 1, 40,000 X100 =28%
5, 00,000
Profit percentage on cost of sales: Profit X100
Cost of sales
Profit percentage on cost of sales: 4, 20,000 X100 =20%
21, 00,000
Cost sheet for the year ending 2008
Particulars Amount Amount
13,000-00
Material 8,000
3,600-00
Add: wages 5,000 16,600-00
Prime Cost 12,828-48
29,428-48
Add: Factory overheads(or) Work Overheads
8,552-32
Factory over heads 60% on direct wages
4,183-20
Increased 20% 42,164-00
60x20/100= 60+12 =72%
5,000x72/100=3,600
Factory cost (OR) Works Cost
Add: Office& Administration Overheads
Administration charges 67.2%on factory cost
Increased 15%
67.2x15/100= 67.2+10.08 =77.28%
16,600x77.28/100=12,828-48
Cost of Production
Add: Selling& Distribution Overheads
Selling charges 44.8% on factory cost
Increased 15%
44.8x15/100= 44.8+6.72 =51.52%
16,600x51.52/100=8,552-32
Distribution Charges 28%on factory cost
Decreased 10%
28x10/100= 28-2.8 =25.2%
16,600x25.2/100=4,183.20
Cost of goods sold (OR) Cost of Sales
Profit 20% on cost of sales 8,432-80
42,164 X20/100= 50,596-80
sales
30. The accounts of Ravi company ltd show for 2006.
Material 3, 50,000 Factory over heads 81,000
Labour 2, 70,000 Administration over heads 56,080
What price should be the company code for a refrigerator? it is estimated that Rs.1000 in
Material and Rs.700 in labour will be required for a one refrigerator observe factory
Over heads on the basis of labour and administration over head on the basis of work cost.
TAKKELLA PUNNAIAH CHOWDARY Page 32
A profit of 12.5% on selling price required.
Cost sheet for the year ending 2006
Particulars Amount Amount
Material 3,50,000 6,20.000
81,000
Add: wages 5,70,000
7,01,000
Prime Cost 56,080
Add: Factory overheads(or) Work Overheads 7,57,080
Factory over heads
Factory cost (OR) Works Cost
Add: Office& Administration Overheads
Administration charges
Cost of Production
Factory overheads percentages on direct wages: Factory over heads X100
Direct wages
Factory overheads percentages on direct wages: 81,000 X100 = 30%
2, 70,000
Administration overheads percentages on factory cost: administration charges X100
Factory cost
Administration overheads percentages on factory cost: 56,080 X100 = 8%
7, 01,000
Cost sheet for the year ending per ending 2007
Particulars Amount Amount
Material 1,000
Add: wages 700
Prime Cost 1,700-00
Add: Factory overheads(or) Work Overheads
Factory over heads 30% on direct wages
700 X 30/100= 210 210-00
Factory cost (OR) Works Cost 1,910-00
Add: Office& Administration Overheads
Administration charges 8%on factory cost
1,910 X 8/100 152-80
Cost of Production 2,062-80
Profit 12.5% on cost of sales
2,062-80 X12.5/87.5=294-68 294-68
sales 2,357-48
TAKKELLA PUNNAIAH CHOWDARY Page 33
UNIT-II
MATERIALS
1. From the following information prepare stores ledger account by adopting FIFO, LIFO, and
SIMPLE AVERAGE.WEIGHTED AVERAGE Method?
Jan-2 purchased 4000 units Rs. 4 per unit.
Jan-20 purchased 500 units Rs.5 per unit.
Feb-5 issued 2000 units.
Feb-10 purchased 6000 units Rs. 6 per unit.
Feb-12 issued 4000 units.
Mar-2 issued 1000 units.
Mar-5 issued 2000 units.
Mar-15 purchased 4500 units Rs.5.50 per unit.
Mar-20 issued 3000 units.
Maximum Stock level XXXX FIFO Re-Order level XXXX
Minimum Stock level XXXX Re-Order quantity XXXX
Average Stock level XXXX Re-Order period XXXX
Date Particulars Receipts Issues Balance
Jan-2
Units Rate Amount Units Rate Amount Units Rate Amount
- 4,000 4-00 16,000
Goods receipt 4,000 6-00 16,000 - -
Jan-20 Goods receipt 500 5-00 2,500 - - - 4,500 4,000-4-00 18,500
500-5-00
Feb-5 Goods issue -- -- -- 2,000 4-00 8,000 2,500 2,000-4-00 10,500
-- -- -- 8,500 500-5-00 46,500
Feb-10 Goods receipt 6,000 6-00 36,000 2,000-4-00
4,500 500-5-00 27,000
Feb-12 Goods issue -- -- -- 4,000 2,000-4-00 19,500 6,000-6-00
1,000 500-5-00 6,000 6-00
1,500-6-00
Mar-2 Good issue -- -- -- 6-00 3,500 6-00 21,000
Mar-5 Goods issue -- -- -- 2,000 6-00 12,000 1,500 6-00 9,000
Mar-15 -- 6,000 1,500-6-00 33,750
Goods receipt 4,500 5-50 24,750 -- -- 4,500-5-50
Mar-20 3,000-5-50 16,500
Goods issue -- -- -- 3,000 1,500-6-00 17,250 3,000
1,500-5-50
Closing Stock= 3,000 units X 5-50 Rate per unit=,16,500.
TAKKELLA PUNNAIAH CHOWDARY Page 34
Maximum Stock level XXXX LIFO Re-Order level XXXX
Minimum Stock level XXXX Re-Order quantity XXXX
Average Stock level XXXX Re-Order period XXXX
Date Particulars Receipts Issues Balance
Jan-2
Units Rate Amount Units Rate Amount Units Rate Amount
- 4,000 4-00 16,000
Goods receipt 4,000 6-00 16,000 - -
Jan-20 Goods receipt 500 5-00 2,500 - - - 4,500 4,000-4-00 18,500
500-5-00
Feb-5 Goods issue -- -- -- 2,000 500-5-00 8,500 2,500 4-00 10,000
1,500-4-00
Feb-10 Goods receipt 6,000 6-00 36,000 -- -- -- 8,500 2,500-4-00 46,000
4,500 6,000-6-00 22,000
Feb-12 Goods issue -- -- -- 4,000 6-00` 24,000 3,500 2,500-4-00 16,000
1,500 2,000-6-00 6,000
Mar-2 Good issue -- -- -- 1,000 6-00 6,000 2,500-4-00
1,000-6-00
Mar-5 Goods issue -- -- -- 2,000 1,000-6-00 10,000 4-00
1,000-4-00
Mar-15 Goods receipt 4,500 5-50 24,750 -- -- -- 6,000 1,500-4-00 30,750
3,000 4,500-5-50 14,250
Mar-20 Goods issue -- -- -- 3,000 5-50 16,500 1,500-4-00
1,500-5-50
Closing Stock= 3,000 units = (1,500 X 4-00 Rate per unit) = 6,000
(1,500 X 5-50 Rate per unit) = 8,250
=, 14,250.
2. From the following information prepare stores ledger account by adopting FIFO, LIFO
and SIMPLE AVERAGE.WEIGHTED AVERAGE Method?
01/04/2002 opening stock 300 units Rs. 3 per unit.
04/04/2002 purchases 600 units Rs.4 per unit.
06/04/2002 issued 500 units.
10/04/2002 purchases 700 units Rs. 4 per unit.
15/04/2002 issued 800 units.
20/04/2002 purchases 300 units Rs. 5 per unit.
25/04/2002 issued 100 units.
Maximum Stock level XXXX Re-Order level XXXX
Minimum Stock level XXXX Re-Order quantity XXXX
Average Stock level XXXX FIFO Re-Order period XXXX
Date Particulars Receipts Issues Balance
2002 Balance b/d Units Rate Amount Units Rate Amount Units Rate Amount
Apr-2
-- -- -- -- - 300 3-00 900
Apr-4 Goods receipt 600 4-00 2,400 - - - 900 300-3-00 3,300
600-4-00
TAKKELLA PUNNAIAH CHOWDARY Page 35
Apr-6 Goods issue -- -- -- 500 300-3-00 1,700 400 4-00 1,600
Apr-10 Goods receipt 700 4-00 2,800
Apr-15 Goods issue -- -- -- 200-4-00
Apr-20 Goods receipt 300 5-00 1,500
Apr-25 Goods issue -- -- -- -- -- -- 1,100 400-4-00 4,400
700-4-00
800 400-4-00 3,200 300 4-00 1,200
400-4-00
-- -- -- 600 300-4-00 2,700
300-5-00
100 4-00 400
500 200-4-00 2,300
300-5-00
Closing Stock= 500 units = (200 X 4-00 Rate per unit) = 800
(300 X 5-00 Rate per unit) = 1,500
= 2,300.
Maximum Stock level XXXX Re-Order level XXXX
Re-Order quantity XXXX
Minimum Stock level XXXX Re-Order period XXXX
Average Stock level XXXX LIFO
Date Particulars Receipts Issues Balance
2002 Balance b/d Units Rate Amount Units Rate Amount Units Rate Amount
Apr-2
-- -- -- -- - 300 3-00 900
Apr-4 Goods receipt 600 4-00 2,400 - - - 900 300-3-00 3,300
600-4-00
Apr-6 Goods issue -- -- -- 500 4-00 2,000 400 300-3-00 1,300
Apr-10 Goods receipt 700 4-00 2,800 -- -- -- 1,100 100-4-00 4,100
300-3-00
Apr-15 Goods issue -- -- -- 800 700-4-00 3,200 300 100-4-00 900
Apr-20 Goods receipt 300 5-00 1,500 700-4-00
Apr-25 Goods issue -- -- -- 3-00
100-4-00
-- -- -- 600 300-3-00 2,400
300-5-00
100 5-00 500
500 300-300 1,900
200-5-00
Closing Stock= 500 units = (300 X 3-00 Rate per unit) = 900 Page 36
(200 X 5-00 Rate per unit) = 1,000
= 1,900.
3. From the following information prepare stores ledger account by adopting FIFO, LIFO
and SIMPLE AVERAGE.WEIGHTED AVERAGE method?
Jan-1 purchased 300 units Rs. 3 per unit.
Jan-5 purchased 600 units Rs.4 per unit.
Jan-10 issued 500 units.
Jan-12 purchased 700 units Rs. 4 per unit.
Jan-13 issued 800 units.
Jan-20 purchased 300units Rs.5 per unit.
TAKKELLA PUNNAIAH CHOWDARY
Jan-30 issued 300 units.
Jan-31 issued 100 units.
Feb-1 purchased 500 units Rs.2 per unit.
Maximum Stock level XXXX FIFO Re-Order level XXXX
Minimum Stock level XXXX Re-Order quantity XXXX
Average Stock level XXXX Re-Order period XXXX
Date Particulars Receipts Issues Balance
jan-1 Goods receipt
Units Rate Amount Units Rate Amount Units Rate Amount
300 3-00 900 - - - 300 3-00 900
Jan-5 Goods receipt 600 4-00 2,400 - - - 900 300-3-00 3,300
600-4-00
Jan-10 Goods issue -- -- -- 500 300-3-00 1,700 400 4-00 1,600
200-4-00
Jan--12 Goods receipt 700 4-00 2,800 -- -- -- 1,100 400-4-00 4,400
700-4-00
Jan -13 Goods issue -- -- -- 800 400-4-00 3,200 300 4-00 1,200
400-4-00
Jan -20 Goods receipt 300 5-00 1,500 -- -- -- 600 300-4-00 2,700
300-5-00
Jan-30 Goods issue -- -- -- 300 4-00 1,200 300 5-00 1,500
Jan -31 Goods issue -- -- -- 100 5-00 500
Feb -1 Goods receipt 500 2-00 1,000 -- -- -- 200 5-00 1,000
700 200-5-00 2,000
500-2-00
Closing Stock= 700 units = (200 X 5-00 Rate per unit) = 1,000
(500 X 2-00 Rate per unit) = 1,000
= 2,000.
Maximum Stock level XXXX LIFO Re-Order level XXXX
Minimum Stock level XXXX Re-Order quantity XXXX
Average Stock level XXXX Re-Order period XXXX
Date Particulars Receipts Issues Balance
Units Rate Amount Units Rate Amount Units Rate Amount
Balance b/d -- -- -- -- - 300 3-00 900
jan-1
Jan-5 Goods receipt 600 4-00 2,400 - - - 900 300-3-00 3,300
600-4-00
Jan-10 Goods issue -- -- -- 500 4-00 2,000 400 300-3-00 1,300
Jan--12 Goods receipt 700 4-00 2,800 -- -- -- 1,100 100-4-00 4,100
300-3-00
100-4-00
TAKKELLA PUNNAIAH CHOWDARY Page 37
700-4-00
Jan -13 Goods issue -- -- -- 800 700-4-00 3,200 300 3-00 900
Jan -20 Goods receipt 300 5-00 1,500 100-4-00
Jan-30 Goods issue -- -- -- -- -- -- 600 300-3-00 2,400
Jan -31 Goods issue -- -- --
Feb -1 Goods receipt 500 2-00 1,000 300-5-00
300 5-00 1,500 300 3-00 900
100 3-00 300
-- -- -- 200 3-00 600
700 200-3-00 1,600
500-2-00
Closing Stock= 700 units = (200 X 3-00 Rate per unit) = 600
(500 X 2-00 Rate per unit) = 1,000
= 1,600.
4. From the following information prepare stores ledger account by adopting FIFO, LIFO
and SIMPLE AVERAGE.WEIGHTED AVERAGE method?
Jan-1 purchased 250 units Rs. 10 per unit.
Jan-5 purchased 400 units Rs.12 per unit.
Jan-10 issued 200 units.
Jan-12 purchased 100 units Rs. 9 per unit.
Jan-13 issued 300 units.
Jan-20 purchased 100units Rs.13 per unit.
Jan-30 issued 220 units.
Maximum Stock level XXXX FIFO Re-Order level XXXX
Minimum Stock level XXXX Re-Order quantity XXXX
Average Stock level XXXX Re-Order period XXXX
Date Particulars Receipts Issues Balance
Units Rate Amount Units Rate Amount Units Rate Amount
- 250 10-00 2,500
Goods receipt 250 10-00 2,500 - -
jan-1
Jan-5 Goods receipt 400 12-00 4,800 - - - 650 250-10-00 7,300
400-12-00
Jan-10 Goods issue -- -- -- 200 10-00 2,000 450 50-10-00 5,300
-- -- -- 400-12-00
Jan--12 Goods receipt 100 9-00 900
550 50-10-00 6,200
Jan -13 Goods issue -- -- -- 300 50-10-00 3,500 400-12-00
100-9-00
250-12-00
250 150-12-00 2,700
Jan -20 Goods receipt 100 13-00 1,300 -- -- -- 100-9-00
Jan-30 Goods issue -- -- -- 220 150-12-00 2,430 350 150-12-00 4,000
100-9-00
70-9-00 100-13-00
130 30-9-00 1,570
100-13-00
Closing Stock= 130 units = (30 X 9-00 Rate per unit) = 270
(100 X 13-00 Rate per unit) = 1,300
= 1,570.
TAKKELLA PUNNAIAH CHOWDARY Page 38
Maximum Stock level XXXX LIFO Re-Order level XXXX
Minimum Stock level XXXX Re-Order quantity XXXX
Average Stock level XXXX Re-Order period XXXX
Date Particulars Receipts Issues Balance
jan-1
Units Rate Amount Units Rate Amount Units Rate Amount
- 250 10-00 2,500
Goods receipt 250 10-00 2,500 - -
Jan-5 Goods receipt 400 12-00 4,800 - - - 650 250-10-00 7,300
400-12-00
Jan-10 Goods issue -- -- -- 200 12-00 2,400 450 250-10-00 4,900
-- -- -- 200-12-00
Jan--12 Goods receipt 100 9-00 900
550 250-10-00 5,800
Jan -13 Goods issue -- -- -- 300 100-9-00 3,300 200-12-00
100-9-00
250 250-10-00 2,500
200-12-00
Jan -20 Goods receipt 100 13-00 1,300 -- -- -- 350 250-10-00 3,800
100-13-00
Jan-30 Goods issue -- -- -- 220 100-13-00 2,500 130 10-00 1,300
120-10-00
Closing Stock= 700 units X 10-00 per unit =1,300
5. From the following information, prepare stores ledger account under:
(i) FIFO (ii) LIFO methods.
1st Jan. opening stock 200 pieces @ Rs. 2 each
5th Jan. purchases 100 pieces @Rs.2.20 each.
10th Jan. purchases 150 pieces @ Rs.2.40 each.
20th Jan. purchases 180 pieces @ Rs.2.50 each
2nd Jan. Issues 150 pieces.
7th Jan. and 12th Jan issues 100 pieces,
28th Jan. issues 200 pieces.
Maximum Stock level XXXX Re-Order level XXXX
Maximum Stock level XXXX Re-Order level XXXX
Minimum Stock level XXXX Re-Order quantity XXXX
Average Stock level XXXX FIFO Re-Order period XXXX
Date Particulars Receipts Issues Balance
Jan-1 Balance b/d
Units Rate Amount Units Rate Amount Units Rate Amount
-- -- -- -- - 200 2-00 400
Jan -2 Goods issue -- -- -- 150 2-00 300 50 2-00 100
Jan -5 Goods receipt 100 2-20 220 -- -- -- 150 50-2-00 320
100-2-20
Jan -7 Goods issues -- -- -- 100 50-2-00 210 50 2-20 110
Jan -10 Goods receipt 150 2-40 360
50-2-20
-- -- -- 200 50-2-20 470
Page 39
TAKKELLA PUNNAIAH CHOWDARY
Jan -12 Goods issue -- -- -- 100 50-2-20 230 100 150-2-40
Jan -20 Goods receipt 180 2-50 450 280 2-40 240
50-2-40
100-2-40 690
-- -- -- 180-2-50
2-50 200
Jan -28 Goods issues -- -- -- 200 100-2-40 490 80
100-2-50
Closing Stock= 80 units X 2-50 Rate per unit) = 200
Minimum Stock level XXXX LIFO Re-Order quantity XXXX
Average Stock level XXXX Re-Order period XXXX
Date Particulars Receipts Issues Balance
Jan-1 Balance b/d
Units Rate Amount Units Rate Amount Units Rate Amount
-- -- -- -- - 200 2-00 400
Jan -2 Goods issue -- -- -- 150 2-00 300 50 2-00 100
Jan -5 Goods receipt 100 2-20 220 -- -- -- 150 50-2-00 320
Jan -7 Goods issues -- -- --
100-2-20
100 100-2-20 220 50 2-20 100
Jan -10 Goods receipt 150 2-40 360 -- -- -- 200 50-2-00 460
150-2-40
Jan -12 Goods issue -- -- -- 100 100-2-40 240 100 50-2-00 230
50-2-40
Jan -20 Goods receipt 180 2-50 450 -- -- -- 280 50-2-00 670
50-2-40
180-2-50
Jan -28 Goods issues -- -- -- 200 180-2-50 498 80 50-2-00 172
20-2-40 30-2-40
Closing Stock= 80 units = (50 X 2-00 Rate per unit) = 100
(30 X 2-40 Rate per unit) = 72
= 172.
6. On1st January 2008, cool industries Ltd.had in stock 5,000 units of certain raw materials
valued at Rs.2.50 per unit. During the month of January ,the following transactions were
effected: (ANU2011 MARCH)
Purchases Issues
Date Units Rate Per unit Date Units
Jan.5 8,000 2.20 Jan.11 4,000
Jan.18 6,000 2.40 Jan.20 7,000
Jan.23 4,000 2.70 Jan.25 9,000
Jan.26 1,500 3.00 Jan.29 2,500
Prepare stores ledger on FIRST IN FIRST OUT and LAST IN FIRST OUT basis
SIMPLE AVERAGE.WEIGHTED AVERAGE
TAKKELLA PUNNAIAH CHOWDARY Page 40
Maximum Stock level XXXX SAM Re-Order level XXXX
Minimum Stock level XXXX Re-Order quantity XXXX
Average Stock level XXXX Re-Order period XXXX
Date Particulars Receipts Issues Balance
Jan-1 Balance b/d Rate
Units Rate Amount Units Amount Units Rate Amount
- 5,000 2-50 12,500
-- -- -- --
Jan -5 Goods receipt 8,000 2-20 17,600 -- -- -- 13,000 -- 30,100
Jan -11 Goods issue -- -- -- 4,000 2-5+2-2=2.35 9,400 9,000 20,700
15,000 35,100
2
Jan -18 Goods receipt 6,000 2-40 14,400 -- -- --
Jan -20 Goods issue -- -- -- 7,000 2-5+2-2+2.4 16,520 8,000 18,580
3
Jan -23 Goods receipt 4,000 2-70 10,800 -- -- 12,000 29,380
Jan -25 =2-36 21,870 3,000 7,510
Goods issue -- -- -- 9,000 --
Jan -26 2-2+2-4+2.7 -- 4,500 12,010
Jan -29 Goods receipt 1,500 3-00 4,500 -- 6,750 2,000 5,260
2,500 3
Goods issues -- -- -- =2-43
--
2-4+2-7+3-00
3
=2-70
Closing Stock= 2,000 units = 5,260
Maximum Stock level XXXX WAM Re-Order level XXXX
Minimum Stock level XXXX Re-Order quantity XXXX
Average Stock level XXXX Re-Order period XXXX
Date Particulars Units Receipts Units Issues Units Balance
Jan-1 Balance b/d -- - 5,000
Rate Amount Rate Amount Rate Amount
-- -- -- 2-50 12,500
Jan -5 Goods receipt 8,000 2-20 17,600 -- -- -- 13,000 2-29 30,100
Jan -11 Goods issue -- -- -- 4,000 2-29 9,160 9,000 2-32 20,940
Jan -18 15,000 2-35 35,340
Jan -20 Goods receipt 6,000 2-40 14,400 -- -- -- 8,000 2-36 18,890
Jan -23 12,000 2-47 29,690
Jan -25 Goods issue -- -- -- 7,000 2-35 16,450 3,000 2-48 7,460
Jan -26 4,500 2-65 11,960
Jan -29 Goods receipt 4,000 2-70 10,800 -- -- -- 2,000 2-66 5,335
Goods issue -- -- -- 9,000 2-47 22,230
Goods receipt 1,500 3-00 4,500 -- -- --
Goods issues -- -- -- 2,500 2-65 6,625
Closing Stock= 2,000 units X 2-66 rate per unit = 5,335
TAKKELLA PUNNAIAH CHOWDARY Page 41
7. From the following information prepare stores ledger account by adopting FIFO, LIFO
and SIMPLE AVERAGE.WEIGHTED AVERAGE method?(ANU MARCH2004)
Opening stock balance on 1-4-2002, 100 units Rs.5 per unit.
Purchases: 5-4-2002, 300 units@Rs 6per unit.
8-4-2002, 500 units@Rs 5 per unit
12-4-2002, 600 units@Rs 8 per unit.
Issues: 6-4-2002, 250units
10-4-2002, 400units.
Maximum Stock level XXXX SAM Re-Order level XXXX
Minimum Stock level XXXX Re-Order quantity XXXX
Average Stock level XXXX Re-Order period XXXX
Date Particulars Receipts Issues Balance
Rate
Units Rate Amount Units Amount Units Rate Amount
- 100 5-00 500
Apr -1 Balance b/d -- -- -- --
Apr -5 Goods receipt 300 6-00 1,800` -- -- -- 400 -- 2,300
Apr -6 Goods issue -- -- -- 250 5-00+6-00=5-50 1,375 150 925
Apr -8 Goods receipt 500 5-00 2,500 650 3,425
2
-- -- --
Apr -10 Goods issue -- -- -- 400 6-00+5-00=5-50 2,200 250 1,225
Apr -12 Goods receipt 600 8-00 4,800 850 6,025
2
-- -- --
Closing Stock= 850 units = 6,025
Maximum Stock level XXXX Re-Order level XXXX
Re-Order quantity XXXX
Minimum Stock level XXXX Re-Order period XXXX
Average Stock level XXXX WAM
Date Particulars Receipts Issues Balance
Apr -1 Balance b/d
Units Rate Amount Units Rate Amount Units Rate Amount
-- -- -- - -- 100 5-00 500
Apr -5 Goods receipt 300 6-00 1,800` -- -- -- 400 5-75 2,300
Apr -6 Goods issue -- -- -- 250 5-75 1,437-50 150 5-75 862-50
Apr -8 Goods receipt 500 5-00 2,500 -- -- -- 650 5-18 3,362-50
Apr -10 Goods issue -- -- -- 400 5-18 2,072 250 5-18 1,290-50
Apr -12 Goods receipt 600 8-00 4,800 -- -- -- 850 7-17 6,090-50
Closing Stock= 850 units X 7-17 rate per unit = 6,090-50
TAKKELLA PUNNAIAH CHOWDARY Page 42
8. From the following information prepare stores ledger account by adopting FIFO, LIFO
and SIMPLE AVERAGE.WEIGHTED AVERAGE method?
2003 August 01 opening balance 50 units @ Rs 3 per unit.
05 issued out to production 2 units.
07 purchased 48 units @Rs 4 per unit.
09 issued out 20 units to production.
19 purchased 76 units @ 3 per unit.
24 received back into stores 19 units out of 9th august issue.
27 issued to production 10 units.
31 Stock verifier found shortage of 5 units of stock.
Maximum Stock level XXXX FIFO Re-Order level XXXX
Minimum Stock level XXXX Re-Order quantity XXXX
Average Stock level XXXX Re-Order period XXXX
Date Particulars Units Receipts Units Issues Units Balance
-- - 50
2003 Balance b/d Rate Amount Rate Amount Rate Amount
Aug-1 -- -- -- 3-00 150
Aug-5 Goods issue -- -- -- 2 3-00 6 48 3-00 144
Aug-7 Goods receipt 48 4-00 192 -- -- -- 96 48-3-00 336
Aug-9 Goods issues -- -- -- 20 3-00 60 48-4-00
Aug-19 Goods receipt 76 3-00 228 -- -- --
-- -- -- 76 28-3-00 276
Aug-24 Goods return 19 3-00 57 48-4-00
(9th aug issue) 10 3-00 30
152 28-3-00 504
Aug-27 Goods issue -- -- -- 48-4-00
76-3-00
Aug-31 Goods loss -- -- -- 5 3-00 15
171 28-3-00 561
48-4-00
76-3-00
19-3-00
161 18-3-00 531
48-4-00
76-3-00
19-3-00
156 13-3-00 516
48-4-00
76-3-00
19-3-00
Closing Stock= 156 units = (13 X 3-00 Rate per unit) = 39
(48 X 4-00 Rate per unit) = 192
(76 X 3-00 Rate per unit) = 228
(19 X 3-00 Rate per unit) = 57
= 516.
TAKKELLA PUNNAIAH CHOWDARY Page 43
Maximum Stock level XXXX LIFO Re-Order level XXXX
Minimum Stock level XXXX Re-Order quantity XXXX
Average Stock level XXXX Re-Order period XXXX
Date Particulars Units Receipts Units Issues Units Balance
-- - 50
2003 Balance b/d Rate Amount Rate Amount Rate Amount
Aug-1 -- -- -- 3-00 150
Aug-5 Goods issue -- -- -- 2 3-00 6 48 3-00 144
Aug-7 Goods receipt 48 4-00 192 -- -- -- 96 48-3-00 336
Aug-9 Goods issues -- -- -- 20 4-00 80 48-4-00
Aug-19 Goods receipt 76 3-00 228 -- -- --
-- -- -- 76 48-3-00 256
Aug-24 Goods return 19 3-00 57 28-4-00
(9th aug issue) 10 3-00 30
152 48-3-00 484
Aug-27 Goods issue -- -- -- 28-4-00
76-3-00
Aug-31 Goods loss -- -- -- 5 3-00 15
171 48-3-00 541
28-4-00
76-3-00
19-3-00
161 48-3-00 511
28-4-00
76-3-00
9-3-00
156 48-3-00 496
28-4-00
76-3-00
4-3-00
Closing Stock= 156 units = (48 X 3-00 Rate per unit) = 144
(28 X 4-00 Rate per unit) = 112
(76 X 3-00 Rate per unit) = 228
(4 X 3-00 Rate per unit) = 12
= 496.
9. From the following information prepare stores ledger account by adopting FIFO, LIFO
andSIMPLE AVERAGE.WEIGHTED AVERAGE method?
Dec.1. 2001 stock of materials 500 units @ Rs 10each.
“ .5.2001 purchases 400 units @ Rs 10.20 paisa each
“ .8.2001 purchases 300 units @ Rs 10.50 paisa each
“ 12.2001 issues 400 units.
“ 16.2001 issues 40 units.
“ 20.2001 purchases 600 units @ Rs 10.70 paisa each.
“ 24.2001 purchases 200 units@ Rs 10.23 paisa each.
“ 26.2001 issues 500 units.
“ 29.2001 issues 200 units.
TAKKELLA PUNNAIAH CHOWDARY Page 44
Maximum Stock level XXXX SAM Re-Order level XXXX
Minimum Stock level XXXX Re-Order quantity XXXX
Average Stock level XXXX Re-Order period XXXX
Date Particulars Receipts Issues Balance
Balance b/d Rate
2001 Units Rate Amount Units Amount Units Rate Amount
Dec-1 - 500 10-00 5,000
Dec-5 -- -- -- --
Goods receipt 400 10-20 4,080 -- -- -- 900 -- 9,080
Dec-8 Goods receipt 300 10-50 3,150 -- --- -- 1,200 12,235
Dec-12 400 10+10-20+10-50 4,096 800 8,134
Goods issues -- -- --
Dec-16 3 409-60 760 7,724-4
Goods issue -- -- -- 40 =10-24
Dec-20 10+10-20+10-50 -- 1,360 14,144-4
Dec-24 Goods receipt 600 10-20 6,420 -- 5,160 1,560 16,190-4
Dec-26 Goods receipt 200 10-23 2,046 500 3 1,060 11,030-4
Goods issue -- -- -- =10-24 2,094
Dec-29 -- 860 8,936-4
Goods issue -- -- -- 200
51.63
5
=10-32
10+10-70+10-23
3
=10-47
Closing Stock= 860 units = 8,936-40
Maximum Stock level XXXX WAM Re-Order level XXXX
Minimum Stock level XXXX Re-Order quantity XXXX
Average Stock level XXXX Re-Order period XXXX
Date Particulars Units Receipts Units Issues Units Balance
Balance b/d -- - 500
2001 Goods receipt Rate Amount Rate Amount Rate Amount
Dec-1 -- -- -- 10-00 5,000
Dec-5
400 10-20 4,080 -- -- -- 900 10-08 9,080
Dec-8 Goods receipt 300 10-50 3,150 -- --- -- 1,200 10-19 12,235
Dec-12 Goods issues 10-19 8,159
Dec-16 Goods issue -- -- -- 400 10-19 4,076 800 10-19 7,751-40
Dec-20 Goods receipt 10-42 14,171-40
Dec-24 Goods receipt -- -- -- 40 10-19 407-60 760 10-39 16,217-40
Dec-26 Goods issue 10-39 11,022-40
Dec-29 Goods issue 600 10-20 6,420 -- -- -- 1,360 10-40 8,944-40
200 10-23 2,046 1,560
-- -- -- 500 10-39 5,195 1,060
-- -- -- 200 10-39 2,078 860
Closing Stock= 860 units X 10-40 rate per unit = 8,944-40
TAKKELLA PUNNAIAH CHOWDARY Page 45
10. The following is the record of receipts and issues of certain material in the factory during a
week.
April 2008. 1. Opening balance 50 tonnes @ Rs. 10 per tonne.
Issued 30 tonnes
2. Received 60 tonnes @ Rs. 10.20 per tonne.
3. Issued 25 tonnes (stock verification reveals loss of 1 tonne)
4. Received back from orders 10tonnes (previously issued at Rs.9.15 per tonne)
5. Issued 40 tonnes
6. Received 22 tonnes @ Rs. 10.30 per tonne.
7. Issued 38 tonnes.
At which price will you issue the materials? Calculate in all methods?
Maximum Stock level XXXX SAM Re-Order level XXXX
Minimum Stock level XXXX Re-Order quantity XXXX
Average Stock level XXXX Re-Order period XXXX
Date Particulars Receipts Issues Balance
Rate Amount Units Rate Amount
2008 Balance b/d Units Rate Amount Units - 50 10-00 500
Apr-1
Apr-1 Goods issue -- -- -- -- 300 20 10-00 200
-- -- -- 30 10-00
Apr-2 Goods receipt 60 10-20 612 -- -- -- 80 812
Apr-3 Goods issue -- -- -- 25 10+10-20 252-50 55 559-50
Apr-3 Goods loss -- -- -- 1 2 10-10 54 549-40
=10-10
Apr-4 Goods return 10 9-15 91-50 -- 10+10-20 -- 64 640-90
Apr-5 Goods issue -- -- -- 40 387 24 253-90
2
Apr-6 Goods receipt 22 10-30 226-60 -- =10-10 -- 46 480-50
Apr-7 Goods issue -- -- 375-44 8 105-06
-- -- 38 10-20+9-15
2
=9-675
--
10-20+9-15+10-30
3
=9-88
Closing Stock= 8 units = 105-06
Maximum Stock level XXXX WAM Re-Order level XXXX
Minimum Stock level XXXX Re-Order quantity XXXX
Average Stock level XXXX Re-Order period XXXX
Date Particulars Receipts Issues Balance
2008 Balance b/d Units Rate Amount Units Rate Amount Units Rate Amount
Apr-1 Goods issue -- -- -- - -- 50 10-00 500
Apr-1
-- -- -- 30 10-00 300 20 10-00 200
TAKKELLA PUNNAIAH CHOWDARY Page 46
Apr-2 Goods receipt 60 10-20 612 -- -- -- 80 10-15 812
-- --
Apr-3 Goods issue -- 25 10-15 253-75 55 10-15 558-25
Apr-3 Goods loss -- -- -- 1 10-15 10-15 54 548-10
Apr-4
Apr-5 Goods return 10 9-15 91-50 -- -- -- 64 10-00 639-60
Apr-6
Apr-7 Goods issue -- -- -- 40 10-00 400 24 9-98 239-60
Goods receipt 22 10-30 226-60 -- -- -- 46 10-13 466-20
Goods issue -- -- -- 38 10-13 384-94 8 10-15 81-26
Closing Stock= 8 units x 10-15 Rate per unit= 81-26
11. Prepare a stores ledger account from the following information adopting all methods of
pricing of issues of materials:
March 1 opening balances 500 tonnes@ Rs. 200
3. Issue 70 tonnes
4. Issue 100 tonnes
8. Issue 80 tonnes
13. Received from supplier 200 tonnes @ Rs.190.
14. Returned from department A 15 tonnes @ Rs.200
16. Issue 180 tonnes.
20. Received from supplier 240 tonnes @ Rs.195
24. Issue 300 tonnes.
25. received from suppliers 320 tonnes @ Rs.200
26. Issue 115 tonnes.
27. Returned from department B 35 tonnes @ Rs.200
28. Received from supplier 100 tonnes @Rs.200.
Maximum Stock level XXXX FIFO Re-Order level XXXX
Minimum Stock level XXXX Re-Order quantity XXXX
Average Stock level XXXX Re-Order period XXXX
Date Particulars Receipts Issues Balance
Mar-1 Balance b/d
Units Rate Amount Units Rate Amount Units Rate Amount
-- -- -- -- - 500 200 1,00,000
Mar-3 Goods issue -- -- -- 70 200 14,000 430 200 86,000
Mar-4 Goods issue -- -- -- 100 200 20,000 330 200 66,000
Mar-8 Goods issues -- -- -- 80 200 16,000 250 200 50,000
Mar-13 Goods receipt 200 190 38,000 -- -- -- 450 250-200 88,000
200-190
Mar-14 Goods return 15 200 3,000 -- --
(from A) -- 465 250-200 91,000
200-190
Mar-16 Goods issue -- -- -- 180 200 15-200
Mar-20 Goods receipt 240 195 46,800 -- -- 36,000 285 70-200 55,000
200-190
15-20
-- 525 70-200 1,01,800
TAKKELLA PUNNAIAH CHOWDARY Page 47
200-190
15-200
240-195
Mar-24 Goods issue -- -- -- 300 70-200 57,925 225 195 43,875
200-190
15-200
15-195
Mar-25 Goods receipt 320 200 64,000 -- -- -- 545 225-195 1,07,875
320-200
Mar-26 Goods issue -- -- -- 115 195 22,425 430 110-195 85,450
320-200
Mar-27 Goods return 35 200 7,000 -- -- -- 465 110-195 92,450
( from B) 320-200
35-200
Mar-28 Goods receipt 100 200 20,000 -- -- -- 565 110-195 1,12,450
320-200
35-200
100-200
Closing Stock= 565 units = (110 X 195 Rate per unit) = 21,450
(320 X 200 Rate per unit) = 64,000
(35 X 200 Rate per unit) = 7,000
(100 X 200 Rate per unit) = 20,000
= 1, 12,450
Maximum Stock level XXXX LIFO Re-Order level XXXX
Minimum Stock level XXXX Re-Order quantity XXXX
Average Stock level XXXX Re-Order period XXXX
Date Particulars Receipts Issues Balance
Mar-1 Balance b/d
Units Rate Amount Units Rate Amount Units Rate Amount
-- -- -- -- - 500 200 1,00,000
Mar-3 Goods issue -- -- -- 70 200 14,000 430 200 86,000
Mar-4 Goods issue -- -- -- 100 200 20,000 330 200 66,000
Mar-8 Goods issues -- -- -- 80 200 16,000 250 200 50,000
Mar-13 Goods receipt 200 190 38,000 -- -- -- 450 250-200 88,000
200-190
Mar-14 Goods return 15 200 3,000 -- -- -- 465 250-200 91,000
(from A) 200-190
15-200
Mar-16 Goods issue -- -- -- 180 15-200 34,350 285 250-200 56,650
165-190 35-190
Mar-20 Goods receipt 240 195 46,800 -- -- -- 525 250-200 1,03,450
TAKKELLA PUNNAIAH CHOWDARY Page 48
35-190
240-195
Mar-24 Goods issue -- -- -- 300 240-195 58,450 225 200 45,000
35-190
25-200
Mar-25 Goods receipt 320 200 64,000 -- -- -- 545 225-200 1,09,000
320-200
Mar-26 Goods issue -- -- -- 115 200 23,000 430 225-200 86,000
205-200
Mar-27 Goods return 35 200 7,000 -- -- -- 465 225-200 93,000
( from B) 205-200
35-200
Mar-28 Goods receipt 100 200 20,000 -- -- -- 565 225-200 1,13,000
205-200
35-200
100-200
Closing Stock= 565 units = (225 X 200 Rate per unit) = 45,000
(205 X 200 Rate per unit) = 41,000
(35 X 200 Rate per unit) = 7,000
(100 X 200 Rate per unit) = 20,000
= 1, 13,000
Base Stock Method:
This method assumes that minimum base always ending stock. It is not issued that in the nature
of fixed assets. It is carried at original cost.
From the following stock transactions write up a stores ledger a/c and that Base stock with
FIFO, LIFO (Base stock is 200 units)
Date Particulars Units Amount
(Rate)
Jun-01 Purchases 500 2-00
Jun-10 Purchase 300 5-00
Jun-15 Issues 500 --
Jun-20 Purchases 400 3-00
Jun-23 Issues 100 --
Jun-31 Issues 200 --
Maximum Stock level XXXX Re-Order level XXXX
Minimum Stock level XXXX Re-Order quantity XXXX
Average Stock level XXXX FIFO Re-Order period XXXX
Base Stock Method
Date Particulars Receipts Issues Balance
Units Rate Amount Units Rate Amount Units Rate Amount
- 500 2-00 1,000
jun-1 Goods receipt 500 2-00 1,000 - - - 800 500-2-00 2,500
jun-10 Goods receipt 300-5-00
300 5-00 1,500 - - 1,600 300 200-2-00 900
jun-15 Goods issue 100-5-00
-- -- -- 500 300-2-00 -- 700 200-2-00 2,100
jun-20 Goods receipt 400 3-00 1,200 200-5-00 100-5-00
400-3-00
-- --
TAKKELLA PUNNAIAH CHOWDARY Page 49
jun-23 Goods issue -- -- -- 100 5-00 500 600 200-2-00 1,600
jun-31 Goods issue -- -- -- 400-3-00
200 3-00 600 400 200-2-00 1,000
200-3-00
Closing Stock= 400 units = (200 X 2-00 Rate per unit) = 400
(200 X 3-00 Rate per unit) = 600
= 1,000.
Maximum Stock level XXXX Re-Order level XXXX
Re-Order quantity XXXX
Minimum Stock level XXXX Re-Order period XXXX
Average Stock level XXXX LIFO Balance
Base Stock Method
Date Particulars Receipts Issues
Units Rate Amount Units Rate Amount Units Rate Amount
- 500 2-00 1,000
jun-1 Goods receipt 500 2-00 1,000 - - - 800 500-2-00 2,500
jun-10 Goods receipt 300-5-00
jun-15 Goods issue 300 5-00 1,500 - - 1,900 300 2-00 600
jun-20 Goods receipt
jun-23 Goods issue -- -- -- 500 300-5-00 -- 700 300-2-00 1,800
jun-31 Goods issue 400 3-00 1,200 200-2-00 400-3-00
1,500
-- -- 300 600 300-2-00
300-3-00 900
-- -- -- 100 3-00
600 400 300-2-00
-- -- -- 200 3-00 200-3-00
Closing Stock= 400 units = (300 X 2-00 Rate per unit) = 600
(100 X 3-00 Rate per unit) = 300
= 900
Standard Price Method:
Under this method issue the stock under standard price only all the issues rates are same in this
method the stores ledger maintain the standard price.
The purchase and issues of materials in the month of Dec-2007
2007 Jan 01 purchases of 450 units @ Rs 20 per unit
05 Purchases of 350 units @ Rs. 18 per unit
12 Issues of 300 units
14 Issues of 400 units
20 Purchases of 400 units @ Rs 20 per unit
27 Purchases of 250 units @ Rs 25 per unit
28 Issues of 500 units
Maximum Stock level XXXX Re-Order level XXXX
Minimum Stock level XXXX Re-Order quantity XXXX
Average Stock level XXXX FIFO Re-Order period XXXX
Standard Price Method
Date Particulars Receipts Issues Balance
Units Rate Amount Units Rate Amount Units Rate Amount
jan-1 Goods receipt 450 20 9,000 - -- 450 20 9,000
jan-5 Goods receipt
350 18 6,300 - -- 800 15,300
TAKKELLA PUNNAIAH CHOWDARY Page 50
The words you are searching are inside this book. To get more targeted content, please make full-text search by clicking here.
cost accounting problems with ansswers
Discover the best professional documents and content resources in AnyFlip Document Base.
Search