# Jain and Narang's Book Solved Practical Problems | Cost Sheet Problems and Solutions | Part 1

### Cost Sheet Practical Problems and Solutions,  Cost Accounting, Cost Sheet Format, All Universities of India, B.Com]

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In this post, you will get cost sheet practical problems and solutions which are asked in Jain and Narangs’ Book (Part 1). Also go through Part 2 , Part 3 and Part 4 of cost sheet problems and solutions for more.

You can also go through my comprehensive article on Cost Sheet Format.

JAIN AND NARANG’S BOOK PRACTICAL PROBLEM SOLVED

Solution of Problem No. 1

Cost Sheet or Statement of Cost

 PARTICULARS AMOUNT AMOUNT Raw Materials Add: Productive Wages 33,000 38,000 (a) Prime Cost Add: Factory Overhead: Unproductive wages Factory rent and taxes Factory lighting Factory heating Motive power Haulage (works) Director’s Fees (works) Factory cleaning Estimating expenses (works) Factory stationery Water supply (works) Factory insurance Depreciation of Plant & Machinery Loose Tools written off 10,500 7,500 2,200 1,500 4,400 3,000 1,000 500 800 750 1,200 1,100 2,000 600 71,000                             37,050 (b) Factory Cost Add: Office and administrative overhead: Director’s fees (Office) Sundry office expenses Office stationery Office Insurance Legal expenses Depreciation on office Building Rent and Taxes (office) Bank charges 2,000 200 900 500 400 1,000 500 50 1,08,050                 5,550 (c) Cost of production Add: Selling & Distribution overhead: Rent of warehouse Depreciation on Delivery vans Bad debts Advertising Sales department’s salaries Un of delivery vans Commission of sales 300 200 100 300 1,500 700 1,500 1,13,600               4,600 Total Cost 1,18,200

Cost per ton = 1,18,200/14,775 = Rs. 8 per ton

Solution of Problem No. 2

In the Books of Z Manufacturing Company

Cost Sheet

 PARTICULARS AMOUNT AMOUNT Raw Material Consumed: Opening Stock Purchases Carriage on purchases Less: Closing Stock of Raw Materials 62,800 1,85,000 7,150 48,000 (a) Raw Materials consumed during the year Productive wages 2,06,950 1,26,000 (b) Prime Cost Works overheads: Factory Office salaries Repairs of plant, machinery & tools Rent, rates, taxes & insurance Depreciation on plant, machinery and tools Gas and water Manager’s salary 6,500 4,450 8,500 6,500 1,200 7,500 3,32,950             34,650 (c) Factory Cost Administrative Overheads: General Office salaries Rent, rates, taxes & insurance Depreciation on furniture Director’s fees Manager’s salary General expenses Gas and water 12,600 2,000 300 6,000 2,500 3,400 400 3,67,600               27,200 (d) Cost of production Selling & distributive Overheads: Carriage outward Bad debts written off Travelling expenses Traveler’s salaries & commission 4,300 6,500 2,100 7,700 3,94,800         20,600 (e) Total Cost Net Profit 4,15,400 45,700 (f) Sales 4,61,100

Solution of Problem No. 3

Ans:

Cost Sheet of sunshine Industries Ltd.

For the year 2012

Solution of Problem No. 4

Cost Sheet

For the month of September, 2012

Solution of Problem No. 5

In the Books of Modern Manufacturing Company

Cost Sheet

 PARTICULARS AMOUNT AMOUNT Raw Material Consumed: Opening Purchases Less: Closing Stock of Raw Materials 3,000 1,10,000 4,000 (a) Raw Materials Consumed during the year Direct Labour 1,09,000 65,000 (b) Prime Cost Works Overheads: Factory overhead (60% of direct labour cost) Add: Opening stock of work-in-progress Less: Closing stock of work-in-progress 39,000 4,000 6,000 1,74,000       37,000 (c) Factory’s Cost Administrative Overheads: Administrative expenses (5% of sales) 2,11,000   13,750 (d) Cost of Production Add: Opening stock of finished goods Less: Closing stock of finished goods 2,24,750 7,000 8,000 (e) Cost of goods sold Selling and Distributive Overhead: Selling Expenses (10% of sales) 2,23,750   27,500 (f) Total cost Net Profit 2,51,250 23,750 (g) Sales 2,75,000

Solution of Problem No. 6

In the Books of Manufacturing Company

Cost Sheet

 PARTICULARS AMOUNT AMOUNT Raw Material Consumed: Opening Stock Purchases Less: Closing Stock of Raw Materials 40,000 4,00,000 50,000 (a) Raw Material consumed during the year Direct Labour 3,90,000 3,00,000 (b) Prime Cost Works Overheads: Indirect Labour Lubricants Insurance on Plant Power Depreciation on Machinery Factory Rent Property for factory Building 50,000 10,000 3,000 30,000 50,000 60,000 11,000 6,90,000               2,14,000 (c) Factory cost incurred Add: Opening Stock of work-in-progress Less: Closing Stock of work-in-progress 9,04,000 10,000 14,000 (d) Factory Cost Administrative Overheads: Administrative Expenses 9,00,000   1,00,000 (e) Cost of Production Add: Opening Stock of finished goods Less: Closing Stock of finished goods 10,00,000 1,00,000 1,50,000 (f) Cost of goods sold Selling and Distributive Overhead: Sale Commission Salaries of Salesman Carriage outward 60,000 1,00,000 20,000 9,50,000       1,80,000 (g) Total Cost Net Profit 11,30,000 70,000 (h) Sales 12,00,000

Solution of Problem No. 7

Statement Cost Sheet

 PARTICULARS AMOUNT AMOUNT Raw Material Consumed: Opening Stock Purchases Carriage inward 30,000 1,20,000 Less: Closing Stock of Raw Materials 1,50,000 35,000 (a) Raw Material consumed during the year Productive wages 1,15,000 90,000 (b) Prime Cost Factory Overheads: Indirect wages Factory rent & rates Plant repair Depreciation on plant Factory lighting 9,720 7,830 3,420 8,360 7,380 2,05,000           36,710 (c) Factory cost incurred Add: Opening Stock of work-in-progress Less: Closing Stock of work-in-progress 2,41,710 15,000 20,000 (d) Factory Cost 2,36,710

Income Statement

For the year ended on 31-12-2012

 Particulars Amount Net Sales Less: Cost of Goods Sold Opening stock of finished goods                                                                                            43,700 Add: Factory cost                                                                                                                   2,36,710                                                                                                                                                   2,80,410 Less: Closing stock of finished goods                                                                                    54,000 3,25,000         2,26,410 Gross Profit Less: Operating Expenses Office and Administrative overheads (15,030+13,500+2,000)                                           30,530                                                          Selling and Distribution overheads (1,200+7,650)                                                                  8,850 98,590     39,380 Net Profit 59,210

Solution of Problem No. 8

Statement Cost Sheet

 PARTICULARS AMOUNT AMOUNT Raw Material Consumed: Opening Stock Purchases Carriage inward Less: Closing Stock of raw material 40,000 4,75,000 12,500 50,000 (a) Raw Material Consumed during the year Wages 4,77,500 1,75,000 (b) Prime Cost Factory Overhead: Work’s manager’s salary Factory employee’s salary Factory rent, taxes, insurance Power expenses Other production expenses 30,000 60,000 7,250 9,500 43,000 6,52,500           1,49,750 (c) Factory cost incurred Add: Opening stock of work-in-progress Less: Closing Stock of work-in-progress 8,02,250 15,000 10,000 (d) Factory Cost Administrative Overhead: General Expenses 8,07,250   32,500 (e) Cost of Production Add: Opening stock of finished goods Less: Closing stock of finished goods 8,39,750 6,000 15,000 (f) Cost of goods Sold Selling and Distribution Overhead: Selling Expenses 8,30,750   9,250 (g) Total Cost Net Profit 8,40,000 20,000 (h) Sales 8,60,000

Solution of Problem No. 9

In the books of a Manufacturing firm

 PARTICULARS AMOUNT AMOUNT Opening Stock of Raw Materials Add: Purchases of Raw Materials 40,000 11,00,000 Less: Closing Stock of Raw Materials 11,40,000 1,40,000 (a) Raw Materials Consumed during the year Add: Productive Wages 10,00,000 5,00,000 (b) Prime Cost Add: Factory Overheads: Work’s Overhead 15,00,000   1,50,000 (c) works/Manufacturing/Factory Cost Add: Office and Administrative Overheads 16,50,000 1,00,000 (d) Cost of production Add: Opening Stock of finished goods Less: Closing Stock of finished goods 50,000 60,000 17,50,000   (10,000) (e) Cost of goods sold /sales Add: Profit 17,40,000 6,60,000 Sales 24,00,000

Working Note:

% of works overheads to Productive Wages = (1,50,000/5,00,000 * 100) = 30%

% of General overheads to Works Cost = (1,00,000/16,50,000*100) = 6.06%

Solution of Problem No. 10

Statement of Cost Sheet

 PARTICULARS UNIT AMOUNT Raw Material Consumed Wages 15,000 9,000 (a) Prime Cost Factory Overheads (900 x 5) 24,000 4,500 (b) Work’s cost Administrative Overheads (28,500 x 20%) 28,500 5,700 (c) Cost of Production Less: Closing Stock of finished goods (34,200/17,100 = 2*1,100) 17,100   1,100 34,200   2,200 (d) Cost of goods sold Selling & Distribution Overheads (16,000*0.5) 16,000 32,000 8,000 (e) Total Cost Net Sales 16,000 40,000 24,000 Sales 16,000 64,000

Working Note:

Cost of production per unit = (34,200/17,100 = 2)

Profit per unit = (24,000/16,000 = 1.50)

Solution of Problem No. 11

Statement of Cost

 PARTICULARS UNIT AMOUNT Raw Materials Consumed: Opening Stock Purchases Less: Closing Stock of Raw Material 3,000 28,000 4,500 (a) Raw Material consumed during the year Manufacturing wages 26,500 7,000 (b) Prime Cost Work’s Overheads: Factory rent & rates Depreciation on plant 33,500   3,000 1,500 (c) Work’s Cost Administrative Overheads: Office rent General Expenses 38,000   500 400 (d) Cost of production Add: Opening stock of finished goods Less: Closing Stock of finished goods  (38,900/3,000 = 12.97 * 400) 3,000 200 400 38,900 2,800 5,187 (e) Cost of goods sold Selling & Distributive Overheads: Advertisement Expenses 2,800   - 36,513   600 (f) Total Cost Add: Net Profit 2,800 - 37,113 12,887 Sales 2,800 50,000

Working Note:  Total cost per ton = (Total Cost / Output during the year)

Solution of Problem No. 1 2

Statement of Cost Sheet

 PARTICULARS Orient (78) Sujon (287) Unit Total Unit Total Material Wages 350 200 27,300 15,600 1,08,680 62,920 (a) Prime Cost Add: Factory Overheads (80% on labour) 550 160 42,900 12,480 50,336 (b) Work’s Cost Add: Office & Administrative Overhead 710 106.50 55,380 8,307 (c) Cost of production Profit 816.5 183.50 63,687 14,313 (d) Sales 1,000 78,000

Solution of Problem No. 1 3

Cost Sheet

For the year 2012

Working Note:

Selling Price per unit before subsidy by government = (49,00,000/20,000) = Rs. 245

Selling price per unit after subsidy by government = Rs. 245 – Rs. 100 = Rs. 145

IMPORTANT NOTE: Selling price to be estimated, we have to convert profit margin from sales to cost.

Solution of Problem No. 1 4

Cost Sheet of Raja Textiles Co. Ltd.

For the year ended on 2011 – 12

Working Note : Estimated selling price per unit for the open market = (expected sales in open market/ no. of units to be sold in open market)  = 98,00,000/10,00,000

Solution of Problem No. 1 5

Cost Sheet of Product A

Working Note: Since profit is 20% sales, therefore required profit is = 1,00,000 * 20/80 = 25,000

Solution of Problem No. 1 6

Cost Sheet of Vindhyachal Industries

For the year ended on 31st December, 2012

 PARTICULARS UNIT AMOUNT Opening of Raw Material Add: Purchases of Raw material [Note – 1] Freight on Raw Material purchased 11,620 88,610 5,570 Less: Closing Stock of Raw Material 1,05,800 9,640 (a) Raw Material Consumed during the year Add: Direct Labour 96,160 32,640 (b) Prime Cost Add: Factory Overheads: Indirect Labour Other Factory Expenses Indirect materials 1,28,800   12,160 31,730 21,390 (c) Factory cost incurred Add: Opening Stock of work-in-progress Less: Closing Stock of work-in-progress 1,94,080 5,740 7,820 (d) Factory Cost or Cost of Production Add: Opening Stock of finished goods [12 x 500] Less: Closing stock of finished goods [12 x 1,500] 16,000 500 1,500 1,92,000 6,000 18,000 (e) Cost of goods sold Add: Profit 15,000 1,80,000 1,80,000 (f) Sales 15,000 3,60,000

Working Note:

Note – 1: Calculation of Purchases:

 PARTICULARS AMOUNT Factory cost incurred Less: Factory Overheads: Indirect Labour Other Factory Expenses Indirect materials 1,94,080   12,160 31,730 21,390 Less: Direct Labour 1,28,800 32,640 Less: Opening Stock of Raw Materials Add: Closing Stock of Raw Materials Less: Freight on Raw Material Purchased 96,160 11,620 9,640 5,510 Purchase of Raw Materials 88,610

Solution of Problem No. 1 7

Cost Sheet of Adarsh Manufacturing Company

For the month of April, 2012

Working Notes:

Note – 1: Calculation of Purchases of Raw Material

 PARTICULARS AMOUNT Cost of goods sold Less: Opening Stock of finished goods Add: Closing Stock of finished goods 56,000 17,600 19,000 Less: Opening Stock of work-in-progress Add: Closing Stock of work-in-progress 57,400 10,500 14,500 Less: Works/Factory Overheads (17,500*100/175) 61,400 10,000 Less: Direct Labour 51,400 17,500 Less: Opening Stock of Raw Materials Add: Closing Stock of Raw Materials 32,900 8,000 10,600 Purchase of Raw Materials 36,500