COST SHEET

Problem 1:
From the following details, prepare a statement showing the Prime Cost, Factory Cost, Cost
of Production, Cost of Goods Sold and Cost of Sales as on 31.3.2018.

Particulars Amount
Opening Stock:
Raw Material 20000
WIP 16000
Finished Goods 12000
Closing Stock:
Raw Material 17000
WIP 15500
Finished Goods 16000
Factory Rent and Taxes 7600
Legal Charges 3200
Depreciation: Plant and Machinery 1600
Depreciation: Office Building 2200
Depreciation: Delivery Vans 2300
Carriage Inward 4500
Carriage Outward 4300
Manager’s Salary 10600
Salesmen Commission 6800
Bad Debts 1300
Purchase of Raw Material 42000
Donation to Charitable Trust 51000
Direct Wages 9500
Sales 100000
Problem 2:
From the following information available, prepare a detailed cost sheet as on 31.3.2018.

Particulars Amount
Purchases 45000
Factory Rent 7800
Establishment Charges 6500
Delivery Van Expenses 3400
Directors’ Travelling Expenses 9500
Works Expenses 7900
Direct Wages 6500
Office Salaries 10500
Commission of Salesmen 4300
Warehouse Expenses 6500
Customs Duty 7250
Opening Stock of Raw Material 75000
Closing Stock of Raw Material 60000
Cost of Catalogues 5500
Opening Stock of WIP 19000
Closing Stock of WIP 17500
Provision for Taxation 6980
Opening Stock of Finished Goods 32000
Closing Stock of Finished Goods 46000
Office Lighting 7900
Sales 190000
Carriage Inward 3600
Problem 3:
Prepare a Cost Sheet showing Prime Cost, Factory Cost, COP, COGS, COS and Profit as on
31st March, 2019.

Particulars Amount
Purchases:
Raw Material 53000
Office Stationery 5500
Direct Expenses 6700
Indirect Wages 8400
Office Rent and Taxes 10000
Travelers’ Wages and Commission 8500
Repairs to Machinery 3200
Repairs of the Delivery Van 7600
Supervisor Salaries 9500
Sundry Office Expenses 1250
Bad Debts 2350
Provision for Bad Debts 7580
Legal Expenses 1200
Showroom Expenses 12000
Opening Stock:
Raw Material 32000
WIP 14500
Finished Goods 45000
Closing Stock:
Raw Material 26000
WIP 13000
Finished Goods 56000
Sales 160000
Problem 4:
From the following available information, prepare a detailed Cost Sheet as on 31.3.2019.

Particulars Amount
Stock of Raw Material (1.4.2018) 75000
Stock of Material (31.3.2019) 91500
Direct Wages 52500
Indirect Wages 2750
Sales 200000
WIP (1.4.2018) 28000
WIP (31.3.2019) 35000
Purchases of Raw Material 66000
Factory Rent, Rates and Taxes 15000
Depreciation on Plant and Machinery 3500
Expenses on Purchases 1500
Carriage Outward 2500
Advertising 3500
Office Rent and Taxes 2500
Travelers’ Wages 6500
Stock of Finished Goods (1.4.2018) 54000
Stock of Finished Goods (31.3.2019) 31000
Problem 5:
Prepare a detailed cost sheet for Mahesh Co. as on 31.3.2019 from the following details:

Particulars Amount
Opening Stock of Raw Material 25000
Closing Stock of Raw Material 19000
Purchases of Raw Material 42000
Carriage Inward 8000
Carriage Outward 7500
Direct Wages 14000
Indirect Wages 6500
Salesmen Salaries 15500
Salary of the Managing Director 25000
Audit Fees 4000
Factory Electricity Bill 7800
RDD 1360
Opening Stock of WIP 19000
Closing Stock of WIP 18600
Factory Overtime Premium 3200
Packing Expenses 5500
Postage 600
Opening Stock of Finished Goods 16000
Closing Stock of Finished Goods 13000
Sales Value 200000
Problem 6:
From the following details of XYZ Co. prepare a cost sheet for the year ending 31.3.2019.

Particulars Amount
Stock of Raw Material:
Opening 188000
Closing 200000
Material purchased during the year 832000
Direct Wages paid 238400
Indirect Wages 16000
Salaries to Administrative Staff 40000
Freight:
Inward 32000
Outward 20000
Sales 1579800
Cash Discount allowed 14000
Bad Debts 18800
Repairs of Plant and Machinery 42400
Rent Rates and Taxes:
Factory 12000
Office 6400
Travelling Expenses 12400
Salesmen Salaries and Commission 33600
Depreciation:
Plant and Machinery 28900
Furniture 2400
Director’s Fees 24000
Electricity Charges (Factory) 48000
Fuel (for boiler) 64000
Sale of Scrap 500
 General Charges 24800
Manager’s Salary 48000

The manager’s time is shared between the factory and office in the ratio of 20:80
Problem 7:
Prepare a Cost Sheet for the year ended 31.3.2019 from the following figures extracted
from the books of Best Engineering Co.

Opening Stock:
Raw Material 40,350,
Work-in-Progress 15,000
Finished Stock 35,590.
Cost incurred during the period:
Materials purchased 2,50,000,
Wages paid 2,00,000,
Carriage inward 7,000,
Works Equipment 10,000,
Wages of Factory Supervisor 7,000,
Depreciation of Plant & Machinery 10,000,
Repairs & Renewals 5,010,
Office Manager’s Salary 10,000,
Salary to Office Staff 20,500,
Printing & Stationery 10,000,
Power 10,500,
Lighting for Office Building 2,000,
Carriage outward 3,000,
Donation 2,500,
Warehousing charges 1,500,
Legal charges 2,000,
Expenses for participating in Industrial exhibition- 6,000.
Closing Stock:
Raw material 35,000,
Work-in-Progress 14,500,
Finished Stock 40,030.
Profit 25% on cost.

Problem 8:
Prepare a Cost Sheet for the year ended 31.3.2019 from the following figures extracted
from the books of Manish.

Particulars Amount
Legal Charges 9000
Depreciation on Plant and Machinery 8000
Supervisor’s Salary 30000
Octroi Charges 7500
Works Charges 13500
Carraige Inward 5000
Carraige Outward 6500
Warehousing Expenses 8000
Purchases of Raw Material 120000
Sale of Scrap 6000
Royalty Charges 4000
Director’s Salary 45000
Factory Rent 26000
Opening Stock of Finished Goods 37000
Closing Stock of Finished Goods 45000
Salesmen Commission 7000
Audit Fees 12000
Repairs to Office Furniture 7000
Direct wages 17500
Rent of Admin Block 35000
Coal and Fuel 17000
Opening Stock of WIP 32000
Closing Stock of WIP 49000
Advertising Expenses 3200
Opening Stock of Raw Material 65000
Closing Stock of Raw Material 44000
Cost of Brochures 3500
Profit 15% of COGS
 JOB COSTING

Problem 1:
Direct Costs for Job No. 239 of XYZ Co. are as follows:
Material : 6010
Wages : Dept A - 60 hrs @ Rs. 30 per hour
Dept B - 40 hrs @ Rs. 20 per hour
Dept C - 20 hrs @ Rs. 50 per hour
Overheads: (Variable)
Dept A - Rs. 15000 for 1500 hrs
Dept B - Rs. 4000 for 200 hrs
Dept C - Rs. 12000 for 300 hrs
Overheads: (Fixed) - Rs. 40000 for 2000 normal hrs.

Calculate Cost and Price to get profit of 25% on cost.

Problem 2:
From the following details, ascertain the total cost of each job.

Job 1 Job 2 Job 3 Job 4

Direct Material 800 1000 1200 1400

Direct Labour 400 500 600 700

Direct Expenses 80 100 120 140

Problem 3:
From the following details, ascertain the total cost of each job.

Job 1 Job 2 Job 3 Job 4

Direct Material 3200 4100 2250 4500

Direct Labour 2100 1600 700 1200

Direct Expenses 100 200 90 350

Problem 4:
The cost estimates of RK Ltd has following data:
Direct Material : 34 units @ Rs. 2 per unit
Direct Labour: Dept A - 12 hrs @ Rs. 2 per hour
Dept B - 20 hrs @ Rs. 1.80 per hour
Variable O/H: Dept A - Rs. 18000 for 18000 hours
Dept B - Rs. 18000 for 10000 hours
Fixed O/H: Rs. 100000 for 50000 hours
Profit: 20% of Selling Price
Prepare a Job Cost Sheet.

Problem 5:
From the following details, prepare a cost sheet for Job No. 75:
Material - Rs. 6000
Direct Expenses - Rs. 500
Production Wages - Rs. 4600
Works O/H - 60% of Productive Wages
Office O/H - 12.5% of Works Cost
Profit - 15% on selling price.
 CONTRACT COSTING

Problem 1:
The following expenditure was incurred on a contract of Rs. 12,00,000 for the year ending
31-12-2019.
Materials: Rs. 2,40,000
Wages: Rs. 3,28,000
Plant: Rs. 40,000
Overheads: Rs. 17,200
Cash received on account of the contract upto 31st Dec. 2019 was Rs. 4,80,000, being 80%
of the work certified.
The value of materials in hand was Rs. 20,000.
The plant had undergone 20% depreciation.
Prepare a Contract Account.

Problem 2:
The following expenses were incurred on an unfinished contract during the year 2019.
Materials - Rs. 90,000
Wages - Rs. 60,000
Other expenses - Rs. 30,000
Rs. 2,00,000 was received by the contractor, being 80% of the work certified.
Work done but not certified was Rs. 5,000.
Determine the profit to be credited to profit and loss account and profit kept reserve in all
the three alternatives given below:
(i) Contract price is Rs. 3,00,000
(ii) Contract price is Rs. 5,50,000
(iii) Contract price is Rs. 12,00,000

Problem 3:
Thekedar accepted a contract for the construction of a building for Rs. 10,00,000, the
contractee agreeing to pay 90% of work certified by the architect.
During the first year, the amounts spent were:
Material - Rs. 1,20,000
Machinery - Rs. 30,000
Labour - Rs. 1,50,000
Other expenses - Rs. 90,000
At the end of the year, the machinery was valued at Rs. 20,000 and materials at site were of
the value of Rs. 5,000.
Work certified during the year totalled Rs. 4,00,000.
In addition work-in-progress not certified at the end of the year had cost Rs. 15,000.
Prepare Contract Account in the books of Thekedar.
Also show the various figures of profit that can be reasonably transferred to the Profit and
Loss Account.

Problem 4:
The BBA Construction Company undertakes large contracts. The following particulars
relate to contract No. 125 carried out during the year ended on 31st March, 2015.
 ● Work certified by architect - Rs. 1,43,000
● Wages accrued on 31st March 2015 - Rs. 1,800
● Cost of work not certified - Rs. 3,400
● Direct expenditure - Rs. 2,400
● Plant installed at site - Rs. 11,300
● Materials on hand on 31st March 2015 - Rs. 1,400
● Value of plant on 31st March 2015 - Rs. 8,200
● Materials returned to store - Rs. 400
● Materials sent to site - Rs. 64,500
● Direct expenditure accrued on 31st March 2015 - Rs. 200
● Labour - Rs. 54,800
● Establishment charge - Rs. 3,250
● Contract price - Rs. 2,00,000
● Cash received from contractee - Rs. 1,30,000
Prepare a Contract Account for the period ending 31st March 2015 and find out the profit.
It was decided to transfer 2/3 of the profit on cash basis to Profit and Loss Account

Problem 5:
Modern Contractors have undertaken the two contracts - A and B on Ist January, 2019:
Contract A Contract B
Materials sent to sites 85,349 73,267
Labour engaged on sites 74,375 68,523
Plants installed at sites at cost 15,000 12,500
Direct expenditure 3,167 2,859
Establishment charges 4,126 3,852
Materials returned to store 549 632
Work certified 1,95,000 1,45,000
Cost of work not certified 4,500 3,000
Materials in hand 31st Dec. 2019 1,883 1,736
Wages accrued 31st Dec. 2019 2,400 2,100
Direct expenditure accrued 31st Dec. 2019 240 180
Value on plant 31st Dec. 2019 11,000 9,500
The contract prices have been agreed at Rs. 2,50,000 for contract A and Rs. 2,00,000 for
contract B.
Cash has been received from the contractees as follows:
Contract A Rs. 1,80,000 and Contract B Rs. 1,40,000.
Prepare Contract Accounts.

Problem 6:
A firm of contractors undertook three contracts on 1st April, 2014, 1st October, 2014 and
1st Jan., 2015.
On 31st March, 2015, when their accounts were made up, the position was as follows:
Contract 1 Contract 2 Contract 3
Contract price 4,00,000 1,35,000 1,50,000
Materials 72,000 29,000 10,000
Wages 1,10,000 56,200 7,000
General expenses 4,000 1,400 500
Plant 20,000 8,000 6,000
Materials on hand 4,000 2,000 1,000
Wages outstanding 3,400 1,800 800
Work certified 2,00,000 80,000 18,000
Cash received 1,50,000 60,000 13,500
Work uncertified 6,000 4,000 1,050
General expenses outstanding 600 200 100
The plants were installed on the respective dates of the contract and depreciation is taken
at 10% p. a.
Prepare contract accounts.
 PROCESS COSTING

Problem 1:
A product passes through 3 processes A, B and C.
Process A Process B Process C
1 % loss 2% 5% 10%
2 Sale price per 100 units Rs. 5 Rs. 5 Rs. 20
3 Actual output in units 19,500 18,800 2,000
4 Material consumed Rs. 6,000 Rs. 4,000 Rs. 2,000
5 Direct labour Rs. 8,000 Rs. 6,000 Rs. 3,000
6 Manufacturing expenses Rs. 1,000 Rs. 1,000 Rs. 1,500
During the month, 20,000 units were introduced to Process A at a cost of Rs. 10,000.
Prepare respective Process A/cs and also calculate cost/unit for each process.

Problem 2:
A product passes through 3 processes. The following cost is given below:
Process 1 Process 2 Process 3
Direct Material 2,000 3,020 3,462
Direct Labour 3,000 4,000 5,000
Expenses (direct) 500 226 —
Production Overhead ? ? ?
Output 920 units 870 units 800 units
Normal loss 10% 5% 10%
Sale price of scrap p.u. Rs. 3 Rs. 5 Rs. 6
1,000 units at Rate Rs. 5 were introduced in Process 1.
Production overheads are allocated to each process on the basis of 50% cost of Direct
Labour.
Prepare necessary Process A/c. Also calculate cost p.u. for each process.

Problem 3:
Process A Process B Process C
Sundry material Rs. 1,000 Rs. 1,500 Rs. 1,480
Direct wages Rs. 5,000 Rs. 8,000 Rs. 6,500
Direct expenses Rs.1,050 Rs. 1,188 Rs. 1,605
Normal wastage 5% 4% 5%
Selling price of normal wastage per unit Rs. 0.25 Rs. 0.50 Rs. 1
10,000 units @ Rs. 1 per unit was introduced in Process A.
Factory overheads are 168% of direct wages.
The final product was sold at Rs. 10 per unit fetching a profit of 20% on sales.

Problem 4:
A Ltd. manufactures a chemical product which passes through three processes.
The cost records show the following particulars for the year ended 30th June, 2019.
Input to process X is 20,000 units @ ` 28 per unit.
Process X (Rs.) Process Y (Rs.) Process Z (Rs.)
Materials 48,620 1,08,259 1,03,345
Labour 32,865 84,553 77,180
Expenses 2,515 10,588 16,275
Normal Loss 20% 15% 10%
Scrap value per unit 1 2 3
Actual Output (Units) 18,000 16,000 15,000
Prepare Process Accounts. Also show process cost per unit for each process.

Problem 5:
Product “GUM” passes through three stages. The following information is obtained from the
records of a company for the year ended 31.12.13.
Particulars Process A (Rs.) Process B (Rs.) Process C (Rs)
Direct Material 2,500 2,000 3,000
Direct Wages 2,000 3,000 4,000
Product overheads are Rs. 9,000,
1,000 units at Rs. 5 each were introduced to Process A.
There was no stock of materials or work-in-progress at the beginning and at the end of the
year. The output of each process directly passes to the next process and finally to the
Finished Stock A/c.
Production overheads are recovered on 100% of direct wages.
The following additional data is available:
Output Normal Loss Scrap per Unit
Process A 950 5% 3
Process B 840 10% 5
Process C 750 15% 5
Prepare Process Cost Accounts.
 STANDARD COSTING

Problem 1:
A manufacturing concern, which has adopted standard costing, furnished the following
information:
Standard Material for 70 kg finished product: 100 kg.
Price of materials: Re. 1 per kg.
Actual Output: 2,10,000 kg.
Material used: 2,80,000 kg.
Cost of material: Rs. 2,52,000.
Calculate: (a) Material Usage Variance (b) Material Price Variance (c) Material Cost
Variance

Problem 2:
The standard mix to produce one unit of product is as follows:
Material A 60 units @ Rs. 15 per unit = Rs. 900
Material B 80 units @ Rs. 20 per unit = Rs. 1,600
Material C 100 units @ Rs. 25 per unit = Rs. 2,500
240 units Rs. 5,000
During the month of April, 10 units were actually produced and consumption was as
follows:
Material A 640 units @ Rs. 17.50 per unit = Rs. 11,200
Material B 950 units @ Rs. 18.00 per unit = Rs. 17,100
Material C 870 units @ Rs. 27.50 per unit = Rs. 23,925
2,460 units Rs. 52,225
Calculate all material variances.

Problem 3:
For making 10 kg. of yarn, the standard material requirement is:
Material Quantity (kg.) Rate per kg. (Rs.)
White 8 6.00
Black 4 4.00
In March, 1,000 kg. of yarn was produced.
The actual consumption of materials is as under:
Material Quantity (kg.) Rate per kg. (Rs.)
White 750 7.00
Black 500 5.00
Calculate: (1) MCV (2) MPV (3) MUV

Problem 4:
Calculate Labour cost variance from the information:
Standard production: 100 units
Standard Hours: 500 hours
Wage rate per hour: Rs. 2
Actual production: 85 units
Actual time taken: 450 hours
Actual wage rate paid: Rs. 2.10 per hour
Problem 5:
India Ltd. Manufactures a particular product, the standard direct labour cost of which is Rs.
120 per unit whose manufacture involves the following:
Type of workers Hours Rate (Rs.) Amount (Rs.)
A 30 2 60
B 20 3 60
50 120
During a period, 100 units of the product were produced, the actual labour cost of which
was as follows:
Type of workers Hours Rate (Rs.) Amount (Rs.)
A 3,200 1.50 4,800
B 1,900 4.00 7,600
5,100 12,400
Calculate: (1) Labour cost variance (2) Labour Rate variance (3) Labour Efficiency variance.

Problem 6:
Standard labour hours and rate for production of one unit of Article P is given below:
Per Unit Hour Rate per Hour Total (Rs.)
Skilled worker 5 1.50 7.50
Unskilled worker 8 0.50 4.00
Semi‐ skilled worker 4 0.75 3.00
Actual Data (Articles produced 1,000 units)
Rate per Hour Total (Rs.)
Skilled worker 4,500 hours 2.00 9,000
Unskilled worker 10,000 hours 0.45 4,500
Semi‐ skilled worker 4,200 hours 0.75 3,150
Calculate Labour Variances.