M/s.

Avdhoot Enterprises
Cost Sheet [For the Quarter Year Ended 31-3-014]
Particulars ₹ ₹
Direct Materials :
A. Opening Stock 270,000
Purchases 1,248,000
Carriage Inwards 48,000
1,566,000
Less : Closing Stock 300,000
Net Direct Materials 1,266,000
B. Direct Wages 357,600
C. Direct Expenses 120,000
D. Prime Cost [A + B + C] 1,743,600
E. Works Overheads :
Indirect Wages 24,000
Manager’s Salary (20%) 14,400
Fuel 96,000
Electricity 72,000
Repairs – Plant 63,000
Factory Rent etc. 18,000
Depreciation – Plant 45,000
Total Works Overheads 332,400
F. Works Cost [D + E] 2,076,000
G. Administrative Overheads :
Salaries to Staff 60,000
Manager’s Salary (80%) 57,600
General Charges 37,200
Directors Fees 36,000
Office Rent etc. 9,600
Depreciation – Furniture 3,600
Audit Fees 18,000
Total Administrative Overheads 222,000
H. Cost of Production [F + G] 2,298,000
I. Sales / Distribution Overheads :
Carriage Outwards (37,500 – 7,500) 30,000
Commission on Sales 28,000
Salesmen’s Salaries 50,000
Total Sales / Distribution Overheads : 108,000
J. Cost of Sales [H + I] 2,406,000
K. Profit (Bal. Fig.) 481,200
L. Sales (120% X 24,06,000) [J + K] 2,887,200
 Books of M/s Sohan Manufacturing Company
Cost Sheet for The Year Ended 31-03-2014
Particulars ₹ ₹
Direct Materials :
A. Opening Stock [Raw Materials] 235,000
Purchases 1,040,000
Carriage Inwards 41,000
1,316,000
Less : Closing Stock [Raw Materials] 250,000
Net Direct Materials 1,066,000
B. Direct Wages
Productive Wages 700,000
C. Direct Expenses
Royalty on Production 70,000
D. Prime Cost 1,836,000
E. Works Overheads
Drawing Office Salaries 48,000
Repairs to Plant & Machinery 53,000
Factory Rent, Rates & Taxes 15,000
Depreciation on Plant & Machinery 35,500
Factory Gas and Water Charges 7,500
Manager’s Salary 50,000
Loose Tools Written Off 8,000
Total Works OH 217,000
F. Works Cost 2,053,000
G. Admin. Overheads
Office Rent, Rates & Taxes 8,000
Office Conveyance 15,500
Depreciation – Office Furniture 3,000
Directors Fees 30,000
Office Gas and Water Charges 1,500
Manager’s Salary 10,000
Total Admin. OH 68,000
H. Cost of Production 2,121,000
I. Sales/Distr. Overheads
Salesmen Salary & Commission 42,000
Catalogue Printing 10,000
Trade Fair Expenses 10,000
Total S & D OH 62,000
J. Cost of Sales 2,183,000
K. Profit 910% of Cost) 218,300
L. Sales (110% of Cost) 2,401,300
 Books of Shri Ganesh Industries Ltd.
Cost Sheet for the Year 2017
Step Elements of Cost ₹ ₹
A. Direct Materials :
Opening Stock [Raw Materials] 25,000
Purchases 85,000
Carriage Inwards 5,000
115,000
Less : Closing Stock [Raw Materials] 40,000
Net Direct Materials 75,000
B. Direct Wages 75,000
C. Other Direct Charges 15,000
D. Prime Cost 165,000
E. Factory Overheads
Indirect Wages 10,000
Rent and Rates 5,000
Indirect Material 500
Depreciation on Plant 1,500
Other Factory Expenses 5,700
Managing Director’s Remuneration 4,000
Total Factory OH 26,700
F. Works Cost 191,700
G. Administrative Overheads
Rent and Rates 500
Depreciation on Office Furniture 100
Salary 2,500
Other Office Expenses 900
Managing Director’s Remuneration 2,000
Total Admin. OH 6,000
F. Cost of Production 197,700
I. Sales / Distribution Overheads
Salary 2,000
Managing Director’s Remuneration 6,000
Other Selling Expenses 1,000
Travelling Expenses of Salesman 1,100
Carriage Outward 1,000
Advertisement 2,000
Total S & D OH 13,100
J. Cost of Sales 210,800
K. Profit (Balancing Figure) 39,200
L. Sales (Given) 250,000
 Cost Sheet
Step Element of Cost ₹ ₹
A. Direct Materials :
Opening Stock 61,700
Purchases 286,500
Carriage Inward 5,950
354,150
Less: Closing Stock 75,400
Net Direct Materials 278,750
B. Direct Wages 357,000
C. Prime Cost 635,750
D. Work Overheads
Factory on cost 199,500
Less: Sales of Scrap 1,350
198,150
Work-in-Progress
Add: Opening Stock 121,700
319,850
Less : Closing Stock 135,600
Total Factory OH 184,250
E. Works Cost 820,000
F. Administrative Overheads
Management on cost 110,000
G. Cost of Production 930,000
H. Sales/Distr. Overheads
Selling on cost 70,000
I. Cost of Sales 1,000,000
J. Profit 250,000
K. Sales 1,250,000

1. Percentage of Manufacturing Cost of Total Cost = 8,20,000 /10,00,000 X 100 = 82%

2. Percentage of Manufacturing on cost Total Cost = 1,10,000 / 10,00,000 X 100 = 11%
3. Percentage of Selling to Total Cost = 70,000/10,00,000 X 100 = 7%
 Cost Sheet
STEP Element of Cost Rs. Rs.
A. Direct Material
Opening Stock 110,000
Purchases 825,000
935,000
Less Closing Stock 36,920 898,080
B. Direct Wages 421,400
C. Direct Expenses (Power) 25,840
D. Prime Cost [A + B + C] 1,345,320
E. Work Overheads
Technical Directors Salary 40,590
Factory Rent, Rates and Insurance 10,140
Depreciation on Factory Building 75,200
Factory Stationery 12,340
138,270
Less Sale of Scrap 1,460136,810
F. Work in Progress:
Less: Closing Stock of W.I.P. 120,260
G. Works Cost [D + E + F] 1,361,870
H. Office/ Administrative Overheads:
Printing and Stationery 12,200
Office Rent 60,000
Staff Salaries 630,000 702,200
I. Cost of Production [G + H] 2,064,070
J. Finished Goods:
Add: Opening Stock 45,280
2,109,350
Less: Closing Stock 50,240
K. Cost of Goods Sold [I + J] 2,059,110
L. Sales / Distribution Overheads:
Carriage Outward 28,500
Fess Paid to Brand Ambassador 200,000
Free Samples 20,320 248,820
M. Total Cost / Cost of Sales 2,307,930
N. Profit (10% x 23,07,930 230,793
O. Sales [M + N] 2,538,723
 Cost Sheet
Step Element of Cost ₹ ₹ ₹
A. Direct Materials
Opening Stock 20,000
Purchases 1,500,000
Carriage Inward 20,000
Custom duty & Octroi 60,000
1,600,000
Less: Closing Stock 185,000 1,415,000
B. Direct Wages 1,200,000
C. Direct Expenses (Special Design) 50,000
D. PRIME COST 2,665,000
E. Works Overheads
Power 99,500
Factory Rent 70,000
Factory Electricity 30,000
Depreciation on Plant & Machinery 80,000
Factory Salaries 62,500 342,000
Less : Sale of Scrap 7,500 334,500
F. WORKS COST 2,999,500
G. Office/Administrative Overheads
Office Rent 50,000
Telephone 18,000
Office Electricity 15,000
Salaries 125,000
Establishment expenses 50,000
Directors fees 60,000 318,000
H. COST OF PRODUCTION 3,317,500
I. Finished Goods
Add: Opening Stock 30,000
3,347,500
Less: Closing Stock 30,000
J. COST OF GOODS SOLD 3,317,500
K. Selling & Distribution Overheads
Advertisement 75,000
Depreciation - Delivery Van 20,000
Salaries 62,500
Establishment expenses 50,000
Showroom Rent 65,000
Telephone 12,000
Mailing charges 10,000 294,500
L. TOTALCOST/COST OF SALES 3,612,000
M. PROFIT (20% on S.P.) 903,000
N. SALES 4,515,000
 Cost Sheet
Step Element of Cost ₹ ₹
A. Direct Materials :
Opening Stock 78,175
Add : Purchases 485,230
Add : Carriage inwards 24,325
Less : Sales of defective 8,500
Less: Closing Stock 76,230 503,000
B. Direct Wages
Skilled Labour 315,500
Unskilled Labour 124,500 440,000
C. Direct Expenses
Hire charges – Sp. Equipment 57,000
D. Prime Cost 1,000,000
E. Works Overheads
Corporate manager salary (1/10) 111,000
Rent of Plant 127,500
Indirect Material 235,600
Insurance – Raw Material Stock 22,600
Salary – Drawing & Design 185,700
Less : Sale of Scrap 16,800
W-I-P
Add : Opening Stock 94,300
Less : Closing Stock 96,500 663,400
F. Works Cost 1,663,400
G. Admin. Overheads
Corporate Manager Salary (9/10) 999,000
Office rent 84,700
Office Expenses 41,000
Insurance – Computer 12,700
Depreciation – Computer 87,300
Salary – Office Staff 115,300
Total Admin. OH 1,340,000
H. Cost Of Production 3,003,400
I. Finished Goods
Add : Opening Stock 640,000
Less : Closing Stock of Finished Goods 750,000
J. Cost of Goods Sold 2,893,400
K. Sales/Distr. Overheads
Insurance – Delivery Van 11,500
Carriage outward 110,000
Depreciation – delivery van 28,000
Remuneration – Brand ambassador 480,000
 Printing – catalogue 57,500
Repairs – Delivery Van 35,500
Total S & D OH 722,500
L. Cost of Sales 3,615,900
M. Profit [20% of Cost] 723,180
N. Sales 4,339,080
 Cost Sheet for the Year ended 31st March, 2018
[Output – 15,000 tons]
Step Element of Cost Total Cost Cost per Ton
₹ ₹ ₹ ₹
A. Direct Material : Raw Material 33,000 2,200
B. Direct Labour : Productive Wages 35,000 2,333
C. Direct Expense 3,000 0.2
D Prime Cost 71,000 4.733
E. Factory Overheads :
Unproductive Wages 10,500 0.7
Factory Rent and Taxes 7,500 0.5
Factory Lighting 2,200 0.147
Factory Heating 1,500 0.1
Motor Power 4,400 0.294
Haulage 3,000 0.2
Director’s Fees (Works) 1,000 0.067
Factory Cleaning 500 0.033
Factory Stationery 750 0.05
Loose Tools written off 600 0.04
Water Supply 1,200 0.08
Factory Insurance 1,100 0.073
Depreciation of Plant and Machinery 2,000 36,250 0.133 2.417
F. Works Cost 107,250 7.15
G. Office Overheads :
Director’s Fees (Office) 2,000 0.133
Sundry Expenses 200 0.013
Office Stationery 900 0.06
Rent and Taxes 500 0.033
Office Expenses 500 0.033
Legal Expenses 400 0.027
Bank Charges 50 0.004
Depreciation of Office Building 1,000 5,550 0.067 0.37
H. Cost of Production 112,800 7.52
I. Sales Overheads :
Rent of Warehouse 300 0.02
Depreciation of Delivery Vans 200 0.013
Bad Debts 100 0.007
Advertising 300 0.02
Sales Department Salaries 1,500 0.1
Upkeep of Delivery Van 700
Commission on Sales 1,500 4,600 0,100 0.307
J. Total Cost 117,400 7.827
 Times Paper Mills Limited
Cost Sheet for the Month Ended 31-3-2014
Step Elements of Cost Total Cost ₹ Tons
A. Direct Materials :
Raw Materials (6,000 X 900) 5,400,000 6,000
B. Direct Wages :
Skilled Workmen (280 X 250 X 26) 1,820,000
Semi-skilled Workmen (300 X 150 X 26) 1,170,000
Unskilled Workmen (470 X 100 X 26) 1,222,000 4,212,000 6,000
C. Direct Expenses
Equipment Hire Charges (12,000 X 26) 312,000
Special Dyes (250 X 6,000) 1,500,000 1,812,000 6,000
D. Prime Cost 11,424,000 6,000
E. Work Cost
Variable (50% of Direct Wages) 2,106,000
Fixed 270,000 2,376,000 6,000
F. Works Cost 13,800,000 6,000
G. Administrative Overheads 1,656,000 6,000
(12% of Work Cost)
H. Cost of Production 15,456,000 6,000
Add: Opening Stock of Finished Goods
I. (500 X 2,501.60) 1,250,800 500
Less: Closing Stock of Finished goods
J. (300 X 2,576) 16,706,800 6,500
772,800 300
K. Cost of Goods Sold 15,934,000 6,200
L. Selling & Distribution O/H (80 X 6,200) 496,000 6,200
M. Cost of Sales 16,430,000 6,200
N. Profit 2,170,000 6,200
O. Sales 18,600,000 6,200
Cost per ton ₹

900

702

302
1904

396
2300
276

2576

2,570
80
2,650
350
3,000