How to calculate Cost Sheet?

 

Cost Sheet: It is a statement which is made to ascertain the total cost of product and also the cost per unit. It is used when volume of production is given in the question. It helps to compare two product of same industry or compare two different time period cost sheet.

Example: Find out the total cost of a product with the help of given information:

Particulars	Amount
Raw material	60,000
Factory supervisor fee	1,20,000
Factory expense	26,000
Opening stock of raw material	20,000
Carriage inward	18,000
Direct wages	50,000
Office rent and electricity expenses	32,000
Selling and distribution expenses	14,000
Closing stock of raw material	8,000
Output produced	5200 unit

Prepare cost sheet of 2009 to ascertain factory cost also.

Solution:                           Cost Sheet    

                                 for the year ending  2009                                                                                                                                                                                                                            

Particulars	Amount In (Rs.)	Amount In (Rs.)
Opening stock of raw material	20,000
Add: Raw material	60,000	80,000
Less: Closing stock of raw material	8,000
Raw material consumed		72,000
Add: Direct wages	50,000
Add: Carriage inward	18,000
Prime Cost		90,000
Factory cost:
Add: Factory supervisor fee	1,20,000
Add: Factory expense	26,000
Work cost		2,36,000
Office expenses:
Add: Office rent and electricity expenses	32,000
Office cost		2,68000
Selling and distribution expenses:
Add: Selling and distribution expenses	14,000
Total cost		2,82,000

Example: Compare two periods cost sheet of 2009 and 2010 with the help of given information:

Particulars	2009	2010
Raw material	60,500	72,500
Opening stock of raw material	8,000	-
Factory overhead	26,000	20,000
Depreciation (office)	12,000	16,000
Factory rent	10,000	7,000
Advertisement expenses	24,600	19,060
Closing stock of raw material	5,000	6,000
Direct wages	13,500	16,200
Selling price	1,60,000	1,38,000
Output	11,000	15,000

 

Solution:                                                 Cost Sheet

2009 Total cost	2009 Cost per unit	Particulars	2010 Total cost	2010 Cost per unit
8,000	0.72	Opening stock of raw material	-	-
60,500	5.50	Add: Raw material	72,500	4.83
5,000	0.45	Less: Closing stock of raw material	6,000	0.4
63,500	5.77	Raw material consumed	66,500	4.43
13,500	1.23	Add: Direct wages	16,200	1.08
77,000	7.00	Prime cost	82,700	5.51
26,000	2.36	Add: Factory overhead	20,000	1.33
10,000	0.91	Add: Factory rent	7,000	0.47
1,13,000	10.27	Work cost	1,09,700	7.31
12,000	1.09	Add: Depreciation (office)	16,000	1.07
1,25,000	11.36	Office cost	1,25,700	8.38
24,600	2.24	Add: Advertisement expenses	19,060	1.27
1,49,600	13.6	Total cost	1,44,760	9.65
10,400	0.94	Add: Profit (balancing figure)	5,240	0.35
1,60,000	14.54	Selling price	1,50,000	10.00

 

Example: Prepare the cost sheet for year 2011 with the help of given information of two same products A and Y:

Particulars	Product A Amount (Rs)	Product Y Amount (Rs.)
Material	52,000	59,000
Wages	18,000	16,900

6000 unit produced of product A and 7,000 unit produced of product Y. Factory overhead Rs. 146,000 and office overhead Rs. 94,000 both distributed according to unit produced.

Solution:                                           Cost Sheet

                                                   For the year ended 2011

Particulars	Cost per unit	Product A Amount (Rs)	Cost per unit	Product Y Amount (Rs.)
Material	8.66	52,000	8.43	59,000
Add: Wages	3.00	18,000	2.41	16,900
Prime cost	11.66	70,000	10.84	75,900
Add: Factory overhead	11.23	67,385	11.23	78,615
Work cost	22.89	1,37,385	22.07	1,54,515
Add: Office overhead	7.23	43,385	7.23	50,615
Total cost	30.12	1,80,770	29.30	2,05,130

 

Product A:

Factory overhead = 1, 46,000*6/13 = Rs.67, 385

Office overhead = 94,000*6/13 = Rs. 43,385

Product Y:

Factory overhead = 1, 46,000*7/13 = Rs.78, 615

Office overhead = 94,000*7/13= Rs. 50,615