llustration 5.

1
have been extracted from the books of J K Production
Co. Ltd, f
The following particulars
2012.
the year ended 31 March

Stock of materials as on 1 April 2011 47,000

Stock of materials as on 31 March 2012 45,000
Materials purchased
2,08,000
Drawing office salaries 9,600
Counting house salaries 14,000
Carriage inwards 8,200
Carriage outwards 5,100
Donations to relief fund 4,300
Sales 4,87,000
Bad debts written off 4,700
Repairs of plant, machinery and tools 8,600
Rent, rates, taxes and insurance (factory) 3,000
Rent, rates, taxes and insurance (office) 1,000
Travelling expenses 3,700
Travelling salaries and commission 7,800
Production wages 1,45,000
Depreciation written off on machinery, plant and tools 9,100
Depreciation written off on office furniture 600
Director's fees 6,000
Gas and water charges (factory) 1,000
Gas and water charges (office) 300
General charges 5,000
Manager's salary 18,000
Out of 48 working hours in a week, the time devoted
by the manager to the factory and
office was on an average 30 hours and 18
hours, respectively, throughout the accounng
year. Prepare a cost sheet showing different elements of cost.
Problem 5.1
Mr Gopal furnishes the following data relating to the manufacture of a standard
standard pro
pra

during the month of April 2012:

Raw materials consumed T15,000
Direct labour charges 79,000
Machine hours worked 900
Machine hour rate 75
Administration overheads 20% on works cost
Selling overheads T0.50 per unit
Unit produced 17,100
Units sold 16,000 at 74 per unit
You are required to prepare a cost sheet from the above, showing
(a) the cost per unit,
(b) cost per unit sold and profit for the period.
 Direct materials:

Paper pulp-500 tonnes 5,000 per tonne

Other materials-100 tonnesF3,000 per tonne
Direct labour:
80 skilled men {300 per day for 25 days
40 unskilled men z200 per day for 25 days
Direct expenses:
Special equipment-73,00,000
Special dyes-71,00,000
Works/factory overheads:
Variable@ 100 per cent and fixed 60 per cent on direct wages
Administrative overhead 10 per cent of factory cost
Seling and distribution overhead @15 per cent on work cost.
400 tonnes of special paper was manufactured and sold @ 20,000 per tonne and T80,000 was
realised by the sale of waste material during the course of manufacture. The scrap value of the
special equipment and dyes after utilisation in manufacture is nil.
ExAMPLE 10.2
The following extracts of costing information related to commodity Y for the half year ending
September 30 of the current year:

Purchases of raw materials 71,32,000

Direct wages 1,10,000
Rent, rates, insurance and works overhead 44,000
Carriage inwards 1,584
Stock, Apnil 1 of the curent year
Raw materials 22,000
Finished products (1,600 units) 17,600
Stock, September 30 of the current year
Raw materials 24,464
Finished products (3,200 units) 35,200
Work-in-process, April 1 5,280
Work-in-process, September 30 17,600
Cost of factory supervision 8,800
Sales of finished 3,30,000
product
discounts allowed and selling costs amounted to Re 0.75 per unit sold and 25,600
Advertising,
units of commodity were produced during the period.
You are required to ascertain (a) the value of raw materials used; (b) prime cost; (c) the cost of
tunover of the period; (d) net profit for the period;
and (e) net profit per tonne of the commodity

sold.