Management Accounting –II

Assignment –I

Cost Sheet:
Q.1 The following particulars have been extracted from the costing records of a manufacturing
company for the year ended 31st March, 2014.

Particulars Rs.
Raw material purchased 1,00,000
Wages –Direct 60,000
Wages - Indirect 10,000
Office salaries 22,000
Carriage inward 2,000
Carriage outwards 6,000
Sales 4,00,000
Opening stock:
Raw material 40,000
Finished goods 10,000
Travelling expenses 2,000
Advertising 6,000
Power – Direct 2,000
Agents Commission 10,000
Plant maintenance 8,000
Rent, rates and taxes, etc. 2,000
(9/10 for works and 1/10 for office)
Miscellaneous expenses:
Works 2,000
Office 4,000
Building repairs 2,000
Salaries – plant 4,000
Depreciation:
Plant and machinery 4,000
Building 2,000
Closing Stock:
Raw materials 40,000
Finished goods 6,000
Building is occupied 9/10 by factory and 1/10 by
office
Production 20,000 units

Prepare cost statement for the manufacturing concern for the year ended 31st march 2014.
Q.2. The Chennai limited supplies you the following information and require you to prepare a
cost statement.

Particulars Rs.
Raw material:
Stock as on 1st April 2015 75,000
Stock as on 30th April 2015 91,500
Direct wages 52,500
Indirect wages 2,750
Sales 2,00,000
Work-in-progress on 1st April 2015 28,000
Work-in-progress on 30th April 2015 35,000
Purchases of raw materials 66,000
Factory rent, rates and power 15,000
Depreciation of plant and machinery 3,500
Expenses on purchases 1,500
Carriage outward 2,500
Advertising 3,500
Office rent and taxes 2,500
Traveller's wages and commission 6,500
Stock of finished goods on 1st April 2015 54,000
Stock of finished goods on 30th April 2015 31,000

Q.3. A factory produces a standard product. The following information is given to you from
which you are required to prepare “Cost Statement” for the period ended 31st March 2015.

Particulars Rs.
Consumable materials:
Opening stock 10,000
Purchases of raw materials 85,000
Closing stock 4,000
Direct wages 20,000
Other direct expenses 10,000
Factory overheads 100% of direct labor
Office overheads 10% of works cost
Selling and distribution expenses Rs.2 per unit
Units of finished product:
In hand at the beginning of the period Units 1000 (value 16,000)
Produced during the period 10,000 units
In hand at the end of the period 2,000 units
Also find the selling price per unit on the basis that profit mark-up is uniformly made to yield a
profit of 20% of the selling price. There was no work-in-progress either at the beginning at the
end of the period.
Q.4. The following particulars relating to the year 2013 have been taken from the books of
Chemical Works and Company, which is in the business of manufacturing and selling a chemical
mixture:

Particulars Details (Kg) Amount (Rs.)

Stock on January 1, 2013:
Raw materials 2,000 2,000
Finished Mixture 500 1,750
Factory Stores 7,250

Purchases:
Raw materials 1,60,000 1,80,000
Factory Stores 24,250

Sales:
Finished Mixture 1,53,050 9,18,000
Factory Scrap 8,170

Factory Wages 1,78,650

Power 30,400
Depreciation on factory machinery 18,000
Salaries:
Factory 72,220
Office 37,220
Selling 41,500

Expenses:
Direct 18,500
Office 18,200
Selling 18,000

Stock on December,31, 2013

Raw Material 1,200
Finished Mixture 450
Factory Stores 5,550

Prepare the cost statement for the business for the year 2013.