Prepare a Cost Sheet from the following information of Reliable Ltd. For the year ending 31-03-17. Particulars Rs. Raw materials Consumed 15,50,000 Freight paid on raw materials purchase 40,000 Productive wages paid 750,000 Unproductive wages paid 220,000 Productive wages outstanding 70,000 Royalty on production (direct) 180,000 Fuel and Power 45,000 Factory Rent 63,000 Insurance on machinery 17,000 Loading and Unloading charges on purchase of raw materials 35,000 Loss on sale of old machinery 54,000 Depreciation on machinery 83,000 Lighting – factory 7,000 Lighting – office 3,000 Factory cleaning 4,000 Advertising 37,000 Carriage outwards 13,000 Income tax 60,400 Factory Telephone 8,900 Plant repairs and maintenance 25,000 Office Computer depreciation 120,000 Office Stationery 21,000 Travelling Expenses – salesmen 35,000 Travelling Expenses – office staff 18,000 Donations 13,500 Salaries of sales staff 70,000 Opening Stock of Finished Goods 120,000 Closing Stock of Finished Goods 150,000 Marketing Research expenses 14,000 Bank charges and interest 3,400 Expenses on office cars 35,000 Office managers salary 54,000 Bad debts 7,000 Sales 36,00,000
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Prepare a Cost Sheet from the following information of Reliable Ltd. For the year ending 31-03-17.
|
Particulars |
Rs. |
|
Raw materials Consumed |
15,50,000 |
|
Freight paid on raw materials purchase |
40,000 |
|
Productive wages paid |
750,000 |
|
Unproductive wages paid |
220,000 |
|
Productive wages outstanding |
70,000 |
|
Royalty on production (direct) |
180,000 |
|
Fuel and Power |
45,000 |
|
Factory Rent |
63,000 |
|
Insurance on machinery |
17,000 |
|
Loading and Unloading charges on purchase of raw materials |
35,000 |
|
Loss on sale of old machinery |
54,000 |
|
|
83,000 |
|
Lighting – factory |
7,000 |
|
Lighting – office |
3,000 |
|
Factory cleaning |
4,000 |
|
Advertising |
37,000 |
|
Carriage outwards |
13,000 |
|
Income tax |
60,400 |
|
Factory Telephone |
8,900 |
|
Plant repairs and maintenance |
25,000 |
|
Office Computer depreciation |
120,000 |
|
Office Stationery |
21,000 |
|
Travelling Expenses – salesmen |
35,000 |
|
Travelling Expenses – office staff |
18,000 |
|
Donations |
13,500 |
|
Salaries of sales staff |
70,000 |
|
Opening Stock of Finished Goods |
120,000 |
|
Closing Stock of Finished Goods |
150,000 |
|
|
14,000 |
|
Bank charges and interest |
3,400 |
|
Expenses on office cars |
35,000 |
|
Office managers salary |
54,000 |
|
|
7,000 |
|
Sales |
36,00,000 |
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