Page 17 - DCOM206_COST_ACCOUNTING_II

Particulars of Expenses Amount (`)
Fuel :
Coal : 1,200 tons @ ` 11 per ton 13,200
Coke : 500 tons @ ` 15 per ton 7,500
Handling Charges of the fuel : 850
Cost Accounting – II @ 50 Paise per ton (1,200 + 500 x 0.50)
Ash removal charges : 160 tons 40
@ 25 Paise per ton (160 × 0.25)
Cost of Water Pumped : (1,60,000 × 0.375 ÷ 1,000) 60
Notes Lubricating oil : 50 gallons @ ` 4 per ton (50 × 4) 200
Depreciation on :
Boiler : (20,000 × 6 ÷ 100 = 1,200 × 1 ÷ 12) 100
Building ( 12,000 × 1 ÷ 100 = 120 × 1 ÷ 12) 10
21,960
Less: Credit on account of :
(a) Sale of Ash: 280 tons @ 25 Paise per ton (280 × 0.25) 70.00
(b) Steam to manufacturing shops :
(30,000 lbs ÷ ` 10 per 1,000 lb.) 300.00 370
21,590
Cost of Steam produced :
Salaries and wages of operating staff
1 Foreman @ ` 400 p.m. 400
2 Asst. Foreman (2 × 125) 250
4 Mechanies ( 4 × 75) 300
1 Coolie @ ` 2.50 per day for 30 days (2.50 × 20) 75 1,025
Technical supervision charges : ( 3,940 × 25 ÷ 100 ) 985
Depreciation on Generator and other Electrical equipment : 400
(1,20,000 × 4 ÷ 100 = 4,480 × 1 ÷ 12)
Total Cost of Electricity Generated 24,000
Units generated : (Gross) 97,000
Less : Leakage units 1,000
Net units generated 96,000
Cost of per unit of electricity : (24,000 / 96,000 = ` 0.25) 0.25 Paise

1.4.3 Hotel Costing

Hotel services include boarding and lodging. For providing rooms and accommodations, hotels
have to calculate cost per room-per day.

Objectives of Hotel Costing

The main objectives of hotel costing are:
(i) Ascertainment of cost per unit,

(ii) Interfirm comparisons,
(iii) Analysis of cost of hotel for decision-making,
(iv) Collection of cost data and its analysis for cost control, and

(v) It is advisable to select different cost units.
Specimen for Hotel Costing

A Specimen of Operating Cost of Hotel is given below:

12 LOVELY PROFESSIONAL UNIVERSITY