Page 60 - DCOM202_COST_ACCOUNTING_I

Cost Accounting – I

Notes Particulars SUMO 160 GB ` BRAYON 320 GB `

Materials 54,600 2,17,360
Labour 31,200 1,25,840

Works overhead is charged at 80% on labour and office overhead is taken at 15% on works
cost. The selling price of both hard disk drives amounted to ` 2,000; 156 SUMO 160 GB and
572 BRAYON 320 GB hard disks were sold.
9. From the following information, prepare the balance sheet from the cost records of Aditya
Chemicals Ltd. for 1993.

Particulars `
Finished goods on 1-1-1993 50,000
Raw material on 1-1-1993 10,000
Work in progress 1-1-1993 14,000
Direct labour 1,60,000
purchase of raw material 98,000
Indirect labour 40,000
Heat, light and power 20,000
Factory, Insurance and Taxes 5,000
Repairs to plant 3,000
Factory supplies 5,000
Depreciation –factory building 6,000
Depreciation –plant 10,000
Factory cost of goods produced in 1993 2,80,000
Raw material consumed in 19x3 95,000
Cost of goods sold in 19x3 1,60,000
No office and administration expenses were incurred during the year 1993. Prepare a
statement of cost for the year ending 1993 giving maximum possible information and its
break up.
10. Discuss analytically, direct and indirect costing.

Answers: Self Assessment

1. cost centre 2. Cost Accounting
3. prime cost
4. Direct materials, direct labour and direct expenses

5. indirect costs 6. factory cost or works cost
7. cost of production 8. cost of sales
9. raw materials 10. finished goods
11. indirect expenses 12. Direct and indirect costs
13. Cost of sales and profit margin 14. Product and administrative costs

15. None of these

54 LOVELY PROFESSIONAL UNIVERSITY