Page 56 - DCOM202_COST_ACCOUNTING_I

Cost Accounting – I

Notes Solution:
Cost Sheet

Particulars ` `
Opening stock of raw materials on 1 April,1994 80,000
st
(+)purchase of raw materials 8,00,000
st
(-)Closing stock of raw materials on 31 Jan 1,00,000
Raw materials consumed during the year 7,80,000
(+)Direct labour 6,00,000
Prime cost 13,80,000
Factory overheads:
Indirect labour 1,00,000
Oil 20,000
Insurance on fixtures 6,000
Electricity 60,000
Depreciation on machinery 1,00,000
Factory rent 1,20,000
property tax on factory building 22,000 4,28,000
(+)Opening stock of semi-finished goods 20,000
(-)Closing stock of semi-finished goods 28,000
Factory cost 18,00,000
(+)Administration overheads 2,00,000
Cost of Production 20,00,000
(+)Opening stock of finished goods 2,00,000
(-)Closing stock of finished goods 3,00,000
Cost of goods sold 19,00,000
Selling overheads:
Sales commission 1,20,000
Salaries of salesmen 2,00,000
Carriage outward 40,000
Cost of sales 22,60,000
Profit margin 1,40,000
Sales 24,00,000

Notes property tax on the plant is to be included under the factory overheads. The tax is
paid by the firm on the plant which is engaged in the production process.

Self Assessment

Fill in the blanks:
5. The factory overheads are nothing but the ……………… incurred at the factory site.
6. The total ……………… incurred in the factory could be derived by adding the both direct
cost and indirect cost incurred during the factory process.
7. The …………… is the combination of both the factory cost and administrative overheads.

50 LOVELY PROFESSIONAL UNIVERSITY