Page 36 - DMGT202_COST_AND_MANAGEMENT_ACCOUNTING

Unit 2: Unit and Output Costing

Notes
Particulars `
`
Cost of production XXXXX
(+) Opening stock of fi nished goods XXXXX
(–) Closing stock of fi nished goods XXXXX
Cost of goods sold XXXXX

Example: The following data has been from the records of Centre corporation for the
period from June 1 to June 30, 2005, Draft the cost sheet.
Particulars 2005, 1 June 2005, 30 June
st
th
Cost of raw materials 60,000 50,000
Cost of work in progress 24,000 30,000
Cost of fi nished good 1,20,000 1,10,000
Transaction during the month
Purchase of raw materials 9,00,000
Wages paid 4,60,000
Factory overheads 1,84,000
Administration overheads 60,000
Selling overheads 40,000
Sales 18,00,000
Solution:
Cost Sheet

`
`
Particulars ` `
Opening stock of raw materials 1st June 60,000
(+) Purchase of raw materials 9,00,000
(-) Closing stock of raw materials 30th June 50,000
Raw materials consumed during the month 9,10,000
(+) Wages paid 4,60,000
Prime cost 13,70,000
Factory overheads 1,84,000
(+) Opening stock of semi goods 24,000
(-) Closing stock of semi goods 30,000
Factory overheads 1,78,000
Factory or Works cost 15,48,000
(+) Administration overheads 60,000
Cost of Production 16,08,000
(+) Opening stock of fi nished goods 1,20,000
(–) Closing stock of fi nished goods 1,10,000
Cost of goods sold 16,18,000
(+) Selling overheads 40,000
Cost of Sales 16,58,000
Net profi t 1,42,000
Sales 18,00,000

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