Page 57 - DCOM202_COST_ACCOUNTING_I

Unit 3: Cost Sheet and Unit Costing

8. The …………… is the blend of both, selling overheads and cost of production. Notes
9. The cost of the ……………… is nothing but the direct materials cost of the product.

10. The treatment of the stock of ……………… should carried over in between the opening
stock and closing stock and adjusted among them before the finding the cost of goods
sold.

11. The ……………… are the expenses converting the raw materials into semi-finished goods
which should be relatively considered for the treatment of the stock valuation rather than
on the basis of prime cost.
Choose the appropriate answer:
12. Factory cost is the total of:
(a) Direct and indirect costs (b) product and administrative costs
(c) Cost of sales (d) Profit margin

13. Selling price is the summation of:
(a) Direct and indirect costs
(b) product and administrative costs
(c) Cost of sales and profit margin

(d) Direct materials, direct labour and direct expenses
14. production cost is the summation of:
(a) Direct and indirect costs (b) product and administrative costs
(c) Cost of sales and profit margin
(d) Direct materials, direct labour and direct expenses

15. The statement prepared for the computation of a product/service cost is known as:
(a) Standard Costing (b) Marginal Costing
(c) prime Costing (d) None of these

Task Mr Vivek provides the following information which is related to the product of his
enterprise for the month of December 1995.

`
Raw materials consumed 30,000
Direct labour charges 18,000
Machine hours worked 1,800
Machine hour rate 10
Administrative overheads 20% on works cost
Selling overheads ` 1 per unit
Units produced 26,400 units
Units sold 25,000 units `8 per unit
Draft the cost statement and determine the cost per unit, profit per unit sold and profit
during the period.

LOVELY PROFESSIONAL UNIVERSITY 51