The following information has been obtained from the cost records of modern Works ltd., for three months ending 31st March,2022 during which 100 units are produced and all the units are sold @Rs. 3,000 per unit. Particulars Amount Stock of raw materials (1-1-2021) 18000 Stock of raw materials (31-3-2022) 21000 Materials Purchased 162000 Carriage paid on Purchase 3000 Depreciation on Plant 6000 Repairs to plant 2000 Factory rent, taxes and insurance 7000 Indirect materials 11000 Indirect labor 9000 Direct labor 28000 Depreciation on Furniture 3000 Printing and stationery 1500 Office salaries and allowances 14500 Warehouse rent 2400 Advertising 2000 Salesmen’s salary and commission 2600 Prepare a Cost Sheet showing the following information: Prime Cost b) Works Cost c) Cost of Production
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.
The following information has been obtained from the cost records of modern Works ltd., for three months ending 31st March,2022 during which 100 units are produced and all the units are sold @Rs. 3,000 per unit.
|
Particulars |
Amount |
|
Stock of raw materials (1-1-2021) |
18000 |
|
Stock of raw materials (31-3-2022) |
21000 |
|
Materials Purchased |
162000 |
|
Carriage paid on Purchase |
3000 |
|
|
6000 |
|
Repairs to plant |
2000 |
|
Factory rent, taxes and insurance |
7000 |
|
Indirect materials |
11000 |
|
Indirect labor |
9000 |
|
Direct labor |
28000 |
|
Depreciation on Furniture |
3000 |
|
Printing and stationery |
1500 |
|
Office salaries and allowances |
14500 |
|
Warehouse rent |
2400 |
|
Advertising |
2000 |
|
Salesmen’s salary and commission |
2600 |
Prepare a Cost Sheet showing the following information:
- Prime Cost b) Works Cost c) Cost of Production d) Cost of Sales e) Total Cost f) Profit
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