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    Problem Set 1 PDF

    Uploaded by

    renjith
    The document contains information for 4 accounting problems involving cost sheets, cost statements, and profit/loss calculations. Problem 1 provides income statement and inventory data for ABC Ltd and asks to prepare a cost sheet and show a profit and loss statement. Problem 2 provides expense data for Steelsways Engineering and asks to calculate works cost, total cost, overhead percentages, and a recommended selling price. Problem 3 provides inventory and expense data and asks to prepare a cost sheet. Problem 4 provides production and sales data and asks to prepare a cost sheet showing cost per unit and profit.

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    Problem Set 1 PDF

    Uploaded by

    renjith
    841 views3 pages
    The document contains information for 4 accounting problems involving cost sheets, cost statements, and profit/loss calculations. Problem 1 provides income statement and inventory data for ABC Ltd and asks to prepare a cost sheet and show a profit and loss statement. Problem 2 provides expense data for Steelsways Engineering and asks to calculate works cost, total cost, overhead percentages, and a recommended selling price. Problem 3 provides inventory and expense data and asks to prepare a cost sheet. Problem 4 provides production and sales data and asks to prepare a cost sheet showing cost per unit and profit.

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    The document contains information for 4 accounting problems involving cost sheets, cost statements, and profit/loss calculations. Problem 1 provides income statement and inventory data for ABC Ltd and asks to prepare a cost sheet and show a profit and loss statement. Problem 2 provides expense data for Steelsways Engineering and asks to calculate works cost, total cost, overhead percentages, and a recommended selling price. Problem 3 provides inventory and expense data and asks to prepare a cost sheet. Problem 4 provides production and sales data and asks to prepare a cost sheet showing cost per unit and profit.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    841 views3 pages

    Problem Set 1 PDF

    Uploaded by

    renjith
    The document contains information for 4 accounting problems involving cost sheets, cost statements, and profit/loss calculations. Problem 1 provides income statement and inventory data for ABC Ltd and asks to prepare a cost sheet and show a profit and loss statement. Problem 2 provides expense data for Steelsways Engineering and asks to calculate works cost, total cost, overhead percentages, and a recommended selling price. Problem 3 provides inventory and expense data and asks to prepare a cost sheet. Problem 4 provides production and sales data and asks to prepare a cost sheet showing cost per unit and profit.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Problem 1 : Cost sheet and profit or loss

    The following information are obtained from the books of accounts of ABC Ltd
    for the year ended 2013.

    Debit (Rs.) Credit (Rs.)


    Inventories:
    Raw materials 140000
    Work in progress 200000
    Finished Goods 80000

    Office appliances 17500


    Plant and Machinery 460500
    Buildings 200000
    Sales 768000
    Sales returns and rebates 14000
    Materials purchased 320000
    Freight on materials 16000
    Purchase returns 4800
    Direct labour 160000
    Direct expense 50000
    Indirect labour 18000
    Factory supervision 10000
    Factory repairs and upkeep 14000
    Heat light and power 65000
    Rates and taxes 6300
    Misc. Expenses factory 18700
    Sales commission 33600
    Sales travelling 11000
    Sales promotion 22500
    Distribution dept. salaries & expenses 18000
    Office salaries and expenses 8600
    Interest on borrowed fund 2000
    Dividend income 20000
    Bad debts 5000
    Additional Information:

    1. Closing inventories: Raw materials Rs. 180000; WIP Rs. 192000 and FG Rs.
    115000
    2. Accrued Expenses: Direct Labour Rs. 8000; Indirect Labour Rs. 1200 and
    Interest on borrowed funds Rs. 2000
    3. Depreciation to be provided on: Office appliances at 5%; Plant and
    machinery at 10%; and buildings at 4%
    4. Distribution of common expenses would be as follows:
    a. Heat, light and power: in the ratio of 8:1:1 to factory, office and
    selling and distribution
    b. Rates and taxes: 2/3 to factory and 1/3 to office
    c. Depreciation on buildings: in the ratio of 8:1:1 to factory, office and
    selling and distribution

    Prepare a cost sheet of ABC Ltd for the year ended 31.03.2013 showing
    a. Prime costs
    b. Factory Overheads
    c. Cost of production
    d. Cost of sales
    Also, show Profit and Loss as per cost accounts for the above period.

    Problem 2: Cost statement, estimated cost and Price

    The accounts of Steelsways Engineering Co. Ltd show the following for 2013:

    Rs.
    Materials used 180000
    Manual and machine labour wages directly chargeable 160000
    Works overhead expenditure 40000
    Establishment and general expenses 19000

    a. Show the works cost and total cost, the percentage that the works
    overhead cost bears to the manual and machine labour wages and the
    percentage that the establishment and general expenses bear to the
    works cost
    b. What price should the company quote to manufacture a machine which,
    it is estimated, will require an expenditure of Rs 8000 on materials; and
    Rs. 6000 on wages , so that it will yield a profit of 25% on the total cost or
    20% on selling price
    Problem 3: Cost sheet with adjustments for inventories

    A manufacturing company submits the following information on 31.03.2013.

    Rs. Rs.
    Sales for the year 275000
    Inventories as on 1.4.2012
    Materials 3000
    WIP 4000
    FG 8000
    Raw materials purchased 110000
    Direct labour 65000
    Chargeable expenses 10000
    Inventories as on 31.3.2013
    Materials 4000
    WIP 6000
    FG 7000
    Other Expenses:
    Factory overheads @ 50% of direct labour
    Administration overheads @ 10% of works cost
    Selling overheads @ 5% of sales

    Prepare a cost sheet

    Problem 4: Cost of sales and profit determination

    The following data relate to the manufacture of a standard product during a


    four week period ending June 30, 2013:
    Rs
    Raw materials consumed 4000
    Wages 6000
    Machine hours worked 1000
    Machine hour rate 0.50
    Office overhead @ 20% on works cost
    Selling overhead per unit 0.06
    Units produced 20000
    Units sold (at Re 1 per unit ) 18000

    Prepare a cost sheet showing the cost per unit and profit for the period.

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