MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION

VIVEKANAND EDUCATION SOCIETY’s

POLYTECHNIC

MICRO PROJECT
Academic year: 2020-21

Select Any Product And Prepare Its Cost Sheet

Program: Mechanical Engineering

Program code: ME6I
Course: Enterpreneurship Development
Course code:22032
 MAHARASHTRA STATE
BOARD OF TECHNICAL EDUCATION

Certificate
This is to certify that Mr. Ansari Masood Ahmed
Roll No.- 64 of Sixth(VI)Semester of Diploma in Mechanical Engineering of
Institute, V.E.S. POLYTECHNIC (Code: 0004) has Completed the Micro
Project satisfactorily in Subject-Enterpreneurship Development(EDE) for the
academic year 2020 - 2021 as prescribed in thecurriculum.

Place: Mumbai Enrollment No: 1900040460

Date: ……/……/2020 Exam Seat No:………………………

SubjectTeacher Head oftheDepartment Principal

Seal of
Institution
 INDEX

Academic year: 2020-21 Name of the faculty: Mrs. Sheetal Kokate.

Programcode:ME6I Course & Course code: EDE (22032)
Roll No: 64 Enrollment No: 1900040460
Semester: VI Name of the Candidate: Ansari Masood Ahmed.

SR.NO. CONTENT PAGE NO.

Micro-Project Proposal
a) Aims/Benefits
1 b) Course Outcomes Addressed
1-2
c) Proposed Methodology

d) Action Plan

e) Resources Required

3
2 Rationale
3
3 Course Outcomes Achieved
4-9
4 Literature Review
10
5 Actual Methodology Followed
10
6 Actual Resources Used
11-12
7 Output of the project
13
8 Skills Developed / learning outcome

Application of this Micro-Project 13

9

16
10 Teacher Evaluation Sheet
 Annexure - I

Micro - Project Proposal

1.0 Aim of the Micro-Project:

1. To learn about cost & cost sheet.
2. Learned how to prepare a cost sheet of any product.
3. Stating some relevant information about common features.

2.0 Course Outcomes Addressed:

1) Identify your entrepreneurial Traits. [ ]

2) Identify the business opportunities that suits you. [ ]

3) Use the support systems to zero down to your business idea. [ ]

4) Develop comprehensive business plans. [✓]

5) Prepare plans to manage enterprise effectively. [✓]

3.0 Proposed Methodology:
1. Discussion about topic with guide and among group members
2. Submission of project proposal
3. Information collection
4. Analysis of Data
5. Compilation of the content
6. Representation
7. Editing and Revising the content
8. Report Preparation
 4.0 Action Plan:

Sr. We Activities to be Performed Start Date Finish Date

no ek

1 1st Discussion and finalization of topic

2 2nd Preparation and submission of

Project Proposal

3 4th Literature Review and collection of

data

4 6th Compilation of Report

5 8th Compilation of Report

6 9th Actual Presentation & Final

submission of Micro
Project

5.0 Resources Required:

Sr. No Name of resource/Material Specifications Qt

y

1. Personal Computer/Laptop For editing with internet 1

facility.

2. Microsoft Word For editing report & 1

inserting information.

Signature of Student Signature of Faculty

**************
 Annexure - II

Micro - Project Report

1.0 Rationale:

A cost sheet is a statement prepared at periodical intervals of time, which accumulates all the
elements of the costs associated with a product or production job. It is used to compile the
margin earned on a product or job and forms the basis for the setting of prices on
similar products in the future.

2.0 Aim/Benefits of the micro project:

1. To learn about cost & cost sheet.
2. Learned how to prepare a cost sheet of any product.
3. Stating relevant information about some common features.

3.0 Course outcomes achieved:

1. Identify your entrepreneurial Traits. [ ]

2. Identify the business opportunities that suits you. [ ]

3. Use the support systems to zero down to your business idea. [ ]

4. Develop comprehensive business plans. [✓]

5. Prepare plans to manage enterprise effectively [✓]

 4.0 Literature Review:
 Basic definitions:-
Cost:- Amount of expenditure incurred on a particular thing.
Costing:- It means the process of ascertainment of the costs.
Cost accounting:- It is broader than costing. Cost accounting can be defined as the technique
of recording, classification, allocation, reporting and control of cost.
Thus,
Cost Accounting = Costing + Cost reporting + Cost control.
Elements wise classification of cost:-

The cost of production/manufacturing consists of various expenses incurred on the production

of goods or services. These are the elements of cost which can be divided into three groups:

 Material,
 Labor
 Expenses

1. Material Cost

To produce or manufacture material is required. For example, to manufacture shirts cloth is

required and to produce flour wheat is required.

2. Labor Cost

Labor is the main factor of production. For the conversion of raw material into finished goods,
human resource is needed, and such human resource is termed as labor.

3. Expenses

All costs incurred in the production of finished goods other than material cost and labor cost are
termed as expenses.

What is cost sheet?

It is a statement which shows various components of total cost of product. It classifies and
analyses the components of cost of a product.
Importance of Cost Sheet:-

The importance of cost sheet is as follows:

 Cost ascertainment.
 Fixation of the selling price.
 Help in cost control.
 Facilitates managerial decisions.

1. Cost ascertainment:-

The main objective of the cost sheet is to ascertain the cost of a product. The cost sheet helps in
the ascertainment of cost to determine cost after they are incurred. It also helps to ascertain the
actual cost or estimated cost of a Job.

2. Fixation of the selling price:-

To fix the selling price of a product or service, it is essential to prepare the cost sheet. It helps
in fixing the selling price of a product or service by providing detailed information about the
cost.

3. Help in cost control:-

For controlling the cost of a product, every manufacturing unit must prepare a cost sheet. The
estimated cost sheet helps in the control of material cost, labor cost, and overheads cost at every
point of production.

4. Facilitates managerial decisions:-

It helps in making important decisions by the management, such as: whether to produce or buy
a component, what prices of goods are to be quoted in the tender, whether to retain or replace
an existing machine, etc.

Major Elements of Cost Sheet / Elements of cost of manufacturing product:-

The major elements of a product are;

 Material,
 Labor, and
 Factory overhead.
 1. Material:-

To produce or manufacture material is required. For example, to manufacture shirts, the cloth is
required, and to produce flour, wheat is required.

Material is classified into two categories:

 Direct Material.
 Indirect Material.

i. Direct material:-

Direct material is that material which can be easily identified and related to a specific product,
job, and process. For example, Timber is a raw material for making furniture.

ii. Indirect material:-

Indirect material is that material that cannot be easily and conveniently identified and related to
a particular product, job, process, and activity. Consumable stores, oil, and waste, printing and
stationery, etc., are some examples of indirect material.

2. Labor:-

Labor is the main factor of production. For the conversion of raw material into finished goods,
human resource is needed, and such human resource is termed as labor. Labor can be classified
into two categories:
 Direct Labor
 Indirect Labor

a. Direct Labor:-

Labor, which takes an active and direct part in the production of a product, is called direct labor.
Direct labor is that labor can be easily identified and related to a specific product, job, process,
and activity.

b. Indirect Labor:-

Indirect labor is that labor which cannot be easily identified and related to a specific product,
job, process, and activity. It includes all labor not directly engaged in converting raw material
into a finished product. For example- Night security guards salary.

3. Factory Overhead

Factory overhead includes all costs of manufacturing except direct materials and direct labor,
such as indirect material, indirect labor, heat, and light, property tax, depreciation, etc.

Functional classification of indirect overhead:-

a) Factory overhead:- The indirect expenses (overheads) incurred within the factory area. Eg.:-
Lubricants, oil, Work manager’s salary, factory rent, lightening. Etc.
b) Administration or office overheads:- The indirect expenses (OH) incurred within the
administrative area. Eg.:- Printing & Stationary, Accountant’s salary, Office rent, Office
insurance. Etc.
c) Selling & Distribution overheads:- The indirect expenses (OH) incurred in relation to the
sales activities for the distribution of the product or services. E.g. Packing materials, printing
& stationery, salesman’s salary, advertising, showroom rent, logistics, manager salary bad
debts. Etc.

Advantages of Cost Sheet:-

1. It indicates the break-up of the total cost by elements, i.e. material, labour, overheads, etc.

2. It discloses the total cost and cost per unit of the units produced.

3. It facilitates comparison.

4. It helps the management in fixing selling prices.

5. It acts as a guide to the management and helps in formulating production policy.

6. It enables to keep control over cost of production.

7. It helps the management in submitting quotations or preparing estimates for tenders.

 Company Profile of Goobers Chocolate:

The name of company is Bluementhal Chocolate Company which introduced GOOBERS in
1985 in India.
Initially, The Company was dealing in 2-3 types of spices and dry fruits only. But later on it
came up with up with an idea of chocolate peanuts with milk chocolate.
In the year 1992, the CEO of Blumenthal Chocolate Company thought about increasing the
profit of the company with some bigger margins and making the company bigger then ever. In
the year 1993 company had introduced the full variety of chocolate like dark chocolate,
chocolate enriched with dry fruits etc., and also he started exporting them to neighboring
countries. At that time Blumenthal Chocolate Company was the only company who was there
in Indian Market with full varieties of dark chocolate, chocolate with dry fruits, wafer chocolate,
bar chocolate etc.
In the year 1995, This Company got listed in NSE. Now, in the year 2009, after reading the
Indian booming food industry, The Company has decided to launch a new Chocolate (only in
Indian market) by the name of “GOOBERS”. This chocolate is a unique in its category which
is has peanuts coated in milk chocolate with butter, caramels, dry fruits and honey in it. This
chocolate is available in different packs of 15 grams, 35 grams, 65 grams and Jumbo pack of
125 grams. This chocolate is especially launched in a way so that it suits the middle class pocket
and even low call of people as well. The Jumbo pack of this chocolate is the biggest chocolate
available in the Indian market.
 SWOT Analysis:
Strengths:-
1. Almost 80,000 employees are working for the company.
2. The company is a respected employer that values its workforce.
3. It is cheap in comparison to other chocolates.
4. The company provides better quality of chocolate at competitive prices.
Weaknesses:-
1. Transportation and its costs giant because of the company’s size.
2. Production costs are high.
3. A lot of work just to keep the company running in an orderly and organized fashion.
4. Quality of new products is automatically expected to be very good.
5. It causes health problems.
Opportunites:-
1. Expansion into every country around the world.
2. Increase in control over their market segment.
3. Acquisition of more famous and well known brand names.
4. Expand product range in order to target multiple user groups.
5. Production of sugar-free chocolates.
Threats:-
1. Increased international taxes on goods, especially beverages and confectionary goods.
2. Rise of transportation prices.
3. Other companies such as Cadbury and Nestle who also strives for market leadership.
4. Change in laws that inhibit production or sales in anyway.

 Analysis:
The company is producing 4,50,0000 units of chocolates at the rate of Rs. 16 for which we are
incurring the total cost of Rs. 72,00,000 and the total sales of Rs. 90,00,000 which implies that
we are having the profit of Rs. 18,00,000.
The company is producing a single unit of chocolate at the rate of Rs. 20 which includes the cost
of chocolate as Rs. 16 which again implies that the profit of Rs. 4 is gained on the single unit of
chocolate.
Since the company is earning some percentage of profit above the cost it means increasing cost
can be the favorable condition for the company.
5.0 Actual methodology followed:
1. Discussion about topic with guide and among group members
2. Submission of project proposal
3. Information collection
4. Analysis of Data
5. Compilation of the content
6. Representation
7. Editing and Revising the content
8. Report Preparation

6.0 Actual resources used

Sr.No Name of resource/Material Specifications Qty

1. Online Free open learning 1

sources
2. Computer Microsoft word 1
document with internet
facility
3. Printer Printout 1
7.0 Output of the micro project:

Cost sheet of Chocolate Company

Particulars Cost Per Unit Total Cost

Raw Material
Sugar = 3,00,000
Cocoa Butter = 3,20,000 s
Cocoa Solid = 2,00,000
Peanuts = 2,00,000
Milk Solids = 2,00,000 5.16 23,20,000
Chocolate Coated Rasins =4,00,000
Almonds = 3,00,000
Vanillin = 1,00,000
Honey = 50,000
Boston Baked Bean = 1,50,000

Direct Labour = 7,00,000 1.56 7,00,000

Carriage On Material = 2,42,000 0.53 2,42,500
Prime Cost:- 7.25 36,62,500
Factory Expenses:-
Fixed-
Depreciation On Planet And Machinery =
2,57,500
Rent = 1,50,000
2.35 10,57,000
Power And Consumable Stores = 1,50,000
Factory Insurance = 1,50,000
Supervisor Salary = 50,000
Variable-
Electricity Charges = 50,000
Power And Consumable Stores = 1,00,000
Running Expenses Of Machine = 1,50,000
Factory Cost:- 9.60 43,20,000
Office And Administration Expenses
Office Staff Salary = 10,00,000
Rent = 80,000
4.40 19,80,000
Computer = 1,20,000
Furniture = 3,00,000
Telephone = 10,0000
Carriage Outward = 20,000
Depreciation On Furniture = 50,00014.00
Salaries To Administrative = 3,70,0002.00
Rent, Rates And Taxes = 30,00016.00

Office And Administration Cost:-4.00 14.00 63,00,00

Selling & Distribution Expenses20.00
Advertisement (Print And By Local T.V.
Channels) =4,00,0000
Petrol = 1,00,000
Delivery Vehicles = 2,50,200
Maintenance And Delivery Vehicle = 49,800 2.00 9,00,000
Packaging Rates = 50,000
Bad Debt Written Off = 1,00,000

Total Cost 16.00 72,00,000

Net Profit ( 20% On Selling Prices) 4.00 18,00,000

Sales 20.00 90,00,000

 8.0 Skills developed/Learning outcome:
The following skills were developed while performing and developing this micro-project
1. Designing: Designing of micro-project with minimum required resources and at low cost.
2. Team work: Learned to work in a team and boost individual confidence.
3. Time Management: Timely completion of micro-project as scheduled.
4. Data Analysis: Interpretation of data: drawing and analysis of graphs, laboratory calculations,
etc.
5. Problem-solving: Develop good problem-solving habits.
6. Technical writing: Preparing a report of the proposed plan and final report.

9.0 Application of micro project

The main objective of the cost sheet is to ascertain the cost of a product. The cost sheet helps in the
ascertainment of cost to determine cost after they are incurred. It also helps to ascertain the actual
cost or estimated cost of a Job.

**************
 Annexure – III

Suggested Rubric for Assessment of Micro-Project

S. Characteristi Poor Average Good Excellent

c to be
No assessed ( Marks 1 - ( Marks 4 - 5 ) ( Marks 6 - 8 ) ( Marks 9- 10 )
. 3)
Relevance to Relate to Take care of Take care of
1 the very Related to some at-least more
course few LOs Los one CO than one CO
Not more
Literature than two
At-least 5 At –least 7 About 10
Survey sources
relevant relevant relevant
2 (primaryand
/information sources, at least sources, most sources, most
collection secondary), 2 latest latest latest
very old
reference
Completion Completed Completed
of the less than more than
3 Completed 50 to Completed 60 to
Target as 50% 80 %
60% 80%
per
project
proposal
Enough data
collected by
Sample Size Sufficient and Sufficient and
sufficient and
small, data appropriate appropriate
appropriate
neither sample, enough sample, enough
sample size.
4 Analysis of organized data generated data generated
Proper
Data and nor but not which is
inferences
representatio presented organized and organized and
drawn by
n well not presented presented well
organising and
well. No or poor but poor
presenting data
inferences inferences drawn
through
drawn
tables,charts
and graphs.

Just Well Well

assembled/fabri assembled/fabric assembled/fabri
cated and parts ated with proper cated with
are not functioning parts. proper
functioning In proper shape, functioning
Quality of Incomplete parts. In proper
Prototype/M fabrication/as well. Not in within tolerance
5 proper shape, dimensions and shape, within
odel sembly. tolerance
dimensions good
 beyond finish/appearance dimensions and
tolerance limit. . But no good
creativity in finish/appearan
Appearance/fini
design and use of ce.
sh is shabby.
material Creativity in
design and use
ofmaterial
Very short, Nearly
poor quality sufficient and
Detailed, correct Very detailed,
sketches, correct details
and clear correct, clear
Details about methods,
description of description of
about material,
6 Report methods, methods,
methods, precautions and
Preparation materials, materials,
material, conclusion. but
precautions and precautions and
precaution clarity is not
Conclusions. conclusions.
and there in
Sufficient Enough tables,
conclusions presentation.
Graphic charts and
omitted, But not enough
Description. sketches
some graphic
details are description.
wrong
Major
informatio
Includes major Includes major Well
n is not
information but information organized,
7 Presentation included,
not well and well includes
informatio
organized and organized but major
n is
not presented not presented information
not well well well ,well
organiz
ed . presented

Could not Replied to Replied properly

reply to considerable to considerable
8 Viva Replied most
considerabl number of number of
of the
e number questions but question.
questions
of not very
properly
question. properly
 Annexure – IV

Teacher Evaluation Sheet

Name of Student: Ansari Masood Ahmed. Enrollment No: 19000404060

Name of Program: ME Semester: VI
Course Title: EDE Course Code: 22032
Title of the Micro-Project: Select any product and prepare its cost sheet.

Course Outcomes Achieved: Develop comprehensive business plans.

Prepare plans to manage enterprise effectively.

Evaluation as per Suggested Rubric for Assessment of Micro Project

Sr. Characteristic to be
assessed Poor Average Good Excellent Sub total
No.
( Marks 1-3 (Marks 4-5 ) (Marks 6- ( Marks9-
) 8) 10)

Process and product Assessment (6m)

Relevance to the
1
course

Literature Survey /
Information
2
Collection

Completion of the
Target as per project
3
proposal

Analysis of Data and

4
representation

Quality of
5
Prototype/Model

6 Report Preparation

Individual Presentation/Viva (4 marks)

7 Presentation

8 Viva
 Micro-Project Evaluation Sheet

Roll no. Name of students (A) (B) Total marks

Process and Product Individual (10 marks)
Assessment Presentation/viva
(6 marks) (4 marks)
64 Ansari Masood
Ahmed

Note Every course teacher is expected to assign marks for group evolution in first 3 columns &
individual evaluation in 4TH columns for each group of students as per rubrics.

Comments/Suggestions about teamwork/leadership/interpersonal communication (if any)

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Any Other Comment:

……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
………………………………………………………………………………………………

Name and designation of the Faculty Member: Mrs. Sheetal Kokate (Lecturer)

Signature