Page 41 - DMGT202_COST_AND_MANAGEMENT_ACCOUNTING

Cost and Management Accounting

Notes
Particulars ` Particulars `
`
`
Stock of raw materials 1.1.2005 6,000 Factory rent and rates 6,000
Raw materials procured 56,000 Offi ce rent 1,000
Stock of raw material 31.1.2005 9,000 General expenses 4,000
Direct wages 14,000 Discount on sales 600
Plant depreciation 3,000 Advertisement expenses 1,200
Loss on the sale of plant 600 Income tax paid 2000
Sales ` 1,50,000
5. XYION Co. Ltd. is an export oriented company manufacturing internal-communication
equipment of a standard size. The company is to send quotations to foreign buyers of your
product. As the cost accounts chief you are required to help the management in the matter
of submission of the quotation of a cost estimate based on the following figures relating to

the year 2004.
Total output (in units) 20,000.
Particulars ` ` Particulars `
`
Local raw materials 20,00,000 Excise duty 4,00,000
Imports of raw materials 2,00,000 Administrative offi ce expenses 4,00,000
Direct labour in works 20,00,000 Salary of the managing director 1,20,000
Indirect labour in works 4,00,000 Salary of the joint managing 80,000
director
Storage of raw materials and 1,00,000 Fees of directors 40,000
spares
Fuel 3,00,000 Expenses on advertising 3,20,000
Tools consumed 40,000 Selling expenses 3,60,000
Depreciation on plant 2,00,000 Sales depots 2,40,000
Salaries of works personnel 2,00,000 Packaging and distribution 2,40,000
Prepare the cost statement in columnar form.
6. How would you determine find the cost sheet format of a company and how does it fi nalise

the product cost?
7. In a cost sheet, should the administration overheads come before or after the adjustments

for the opening and closing stock of finished goods? Support your answer with reason.
8. In a factory, there are two different types of hard disk drives manufactured viz SUMO 160
GB and BRAYON 320 GB models. From the following particulars, prepare the cost sheet

showing all the necessary information of cost as well as profit per USB sold. There is no
opening and closing stock.

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.

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