Cost Sheet Analysis

Aparna Parmar
Damini Baijal
Shambhawi Sinha
 PART-A

Particulars 31st March, 2010 31st, March, 2011

Number of Units 1500000 units 2000000 units
       
  Total Cost Cost per unit Total Cost Cost per unit
  (in 000s) (in Rs.) (in 000s) (in Rs.)
Direct Materials 330000 220 396000 198
Direct Wages 270000 180 288000 144
Prime Cost 600000 400 684000 342
Factory overheads 325000 216.667 418333.333 209.167
Works Cost 925000 616.667 1102333.33 551.167
Administration        
overheads 205000 136.667 123000 61.50
Cost of
production 1130000 753.333 1225333.33 612.667
Sales Overheads 90000 60 120000 60
Cost of sales 1220000 813.333 1345333.333 672.667
Profit 280000 186.667 195182.667 97.59
Sales 1500000 1000 1540516 770.25
       
 0.18667  0.1267
 Profit on sales ( %)  
 Calculations
 Material : 20% * 330000 = 66000
Cost : (100-25)% * 220 = Rs.165
Total material cost = 165*2000 + 66000
= Rs.396000
 Factory Overheads : Fixed cost is 45,000
Variable Cost : 3,25,000 – 45,000 = Rs.2,80,000
VC per unit : 280000/1500 = Rs.186.67
Total factory Overheads : Fixed cost + Variable cost
= 45000 + 186.666(2000) = 45000 + 373332 = Rs.418332
 Profit on sales (%) for 2017 = 0.12666
Profit = 0.1266* Sales
 Cost of Sales + Profit = Sales
1345333.33 + 0.1266* Sales = Sales
0.8733 * Sales = 1345333.33
Sales = Rs.1540516
 PART-B

  Particulars Jeans Skirts Handbags

Material Consumed            
  Stock on 1st April 200000  ……… ………
Add: Purchases during the year 600000  300000  100000 
    800000  300000  100000 
Add: Carriage on purchases 12000  6000  2000 
    812000  306000  102000 
Less: Stock on 31st March 150000  75000  25000 
    662000  231000  77000 
Less: Sale of Material 25000 637000 - 231000 - 77000
Direct Labour (productive
wages) 300000 120000 180000
PRIME COST 937000 351000 257000
 Works Overheads:            
  Salaries (Factory) 15350  10000  5000 
  Repairs of plant, machinery 8000  4000  1600 
  Rent, rates, insurance            
  (factory) 12000  6000  2000 
  Depreciation on plant etc. 9000  3000  2000 
  Dyeing and water charges            
  (factory) 3000  1500  500 
  Manager's salary            
  (40/48*18000) 10000  6900  5000 
    57350  31400  16100 
Add: Opening Work-in-progress 100000  ………   ………  
    157350  31400  16100 
Less: Closing Work-in-progress 35000 122350 10000 21400 5000 11100
WORKS COST/FACTORY
COST   1059350  372400  268100
             
Office and Admin Overheads            
  Office Salaries 25000  15000  5000 
  Rent, rates, taxes etc. 2000  700  300 
  Depreciation of office            
  furniture 1800  400  200 
  Director's fees 15000  7000  3000 
  Gas and water charges            
  (office) 850  300  100 
  General charges 12750  5000  3000 
  Manager's Salary 8000 65400 5000 33400 2000 13600
COST OF PRODUCTION   1124750  405800  281700
 Add: Opening stock of finished
stock   350000  ………   ………
      1474750  4105800  281700
Less: Closing stock of finished
stock   450000  200000  120000
COST OF GOODS SOLD   1024750  205800  161700
Selling and distribution
overheads            
  Advertising 28000  21000  8750 
  Carriage on sales 13000  5000  2000 
  Travelling expenses 7000  5000  3000 
  Traveller's salaries and            
  commission 20000 68000 13000 44000 7000 20750
TOTAL COST/ COST OF SALES  1092750  249800  182450
THANK YOU