Page 34 - DMGT202_COST_AND_MANAGEMENT_ACCOUNTING

Unit 2: Unit and Output Costing

Notes
` `
Direct materials 2,00,000 Offi ce stationery 1,000
Direct wages 50,000 Telephone charges 250
Direct expenses 10,000 Postage and telegrams 500
Wages of foreman 5,000 Salesmen’s’ salaries 2500
Electric power 1,000 Travelling expenses 1,000
Lighting: Factory 3,000 Repairs and renewal plant 7,000
Offi ce 1,000 Offi ce premises 1,000
Storekeeper’s wages 2,000 Carriage outward 750
Oil and water 1,000 Transfer to reserves 1,000
Rent: Factory 10,000 Discount on shares written off 1000
Offi ce 5,000 Advertising 2,500
Depreciation Plant 1,000 Warehouse charges 1000
Offi ce 2,500 Sales 3,79,000
Consumable store 5,000 Income tax 20,000
Managers’ salary 10,000 Dividend 4,000
Directors’ fees 2,500
Solution:
Cost Statement/Cost Sheet

Particulars ` ` `
`
Direct Materials 2,00,000
Direct wages 50,000
Direct expenses 10,000
Prime Cost 2,60,000
Factory Overheads:
Wages of foreman 5,000
Electric power 1,000
Lighting: Factory 3,000
Storekeeper’s wages 2,000
Oil and water 1000
Rent: Factory 10,000
Depreciation Plant 1000
Consumable store 5,000
Repairs and Renewal Plant 7,000 35,000
Factory Cost 2,95,000
Administration Overheads:
Rent Offi ce 5,000
Depreciation offi ce 2,500
Managers’ salary 10,000
Directors’ fees 2,500
Offi ce stationery 1,000
Telephone charges 250
Postage and telegrams 500
Offi ce premises 1,000
Lighting: Offi ce 1,000 23,750
Cost of production 3,18,750
Contd...

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