Standard (I Unit Produced) Particulars

Q3 (1)
Cost Sheet for the year ended.. Particulars Amount

60,000 600,000 1,600 661,600
Opening Stock of Raw Materials Add : Purchases Add : Carriage inward Add : Octroi/Customs duty Less : Closing stock of raw materials
Cost of Direct Materials Consumed
-
48,000
613,600
240,000
Direct Wages/Productive wages

(A). PRIME COST
853,600
48,000 48,000 24,000 2,000 4,000
Add : Factory Overheads Power & Fuel Factory Rent Factory lighting Repairs to machinery Depreciation on plant & machinery Add : Opening Work in progress Less : Closing WIP
(B). WORKS COST/FACTORY COST
979,600
-
979,600
-
979,600
24,800 4,800
Add : Office & adm. Overheads Office Salaries Office stationery & printing
( C). COST OF PRODUCTION
1,009,200
48,000
Add : Opening stock of finished goods Less : Closing stock of FG

(D). TOTAL COST
-
1,057,200
60,000
997,200
21,600 12,000
Salesmen's incentives Sales promotion expenses

(E). TOTAL COST/COST OF SALES (F). PROFIT/LOSS (G). SALES
1,030,800 169,200 1,200,000
Q3 (2)
Particulars Rate Material 4 Labour 80 * Comparable standard is the standard cost that would have been incurred for the actual units produced, 6000 units in this case. Material Cost Variance = Material Cost Variance = Standard (I unit produced)
Standard material cost for actual production - Ac 37,200
Materal Price Variance = Materal Price Variance = Material Usage Variance = Material Usage Variance = Check: Material Cost Variance = Material Price Variance + Material Usage Variance Labour Cost Variance = Labour Cost Variance = Labour Rate Variance = Labour Rate Variance = Labour Efficiency Variance = Labour Efficiency Variance =
Actual Quantity (Standard Rate - Actual Rate) 13,200
Standard Rate (Standard Quantity - Actual Quant 24,000
Standard labour cost for actual production - actu 8,800 Actual Hours (Standard Rate - Actual Rate) 24,800 Standard Rate (Standard Hours - Actual Hours) 16,000
Check: Labour Cost Variance = Labour Rate Variance + Labour Efficiency Variance
Q3 (3)
Cash Budget (3 months ending March 31,2010) Particulars Opening Cash Balance Add: Receipts Cash Sales Credit Sales (Note 1) Total Receipts (A) Less: Payments Salaries Wages Advance Tax Interest Material Purchases (Note 2) Other Expenses (Note 3) Total Payments (B) Closing Cash Balance Note 1: Credit Sales Month Dec-09 Jan-10 Feb-10 Mar-10 Total Dec-09 150,000 Jan-10 50,000 280,000 290,000 570,000 10,000 10,000
325,000 10,000 355,000 265,000
150,000
Note 2: Material Purchases Month Dec-09 Jan-10 Feb-10 Mar-10 Total Note 3: Other Expenses Month Dec-09 Jan-10 Feb-10 Mar-10 Total Dec-09 Dec-09 80,000
80,000
Standard Comparable Standard * (I unit produced) (6000 units produced) Input Total Rate Input Total 10 40 4 60,000 240,000 1 80 80 6,000 480,000 r the actual units produced, 6000 units in this case. Standard material cost for actual production - Actual material cost Adverse
Actual (6000 units produced) Rate Input Total 4.2 66,000 277,200 76 6,200 471,200
Actual Quantity (Standard Rate - Actual Rate) Adverse Standard Rate (Standard Quantity - Actual Quantity) Adverse
Standard labour cost for actual production - actual labour cost Favourable Actual Hours (Standard Rate - Actual Rate) Favourable Standard Rate (Standard Hours - Actual Hours) Adverse
Feb-10 265,000 304,000 292,000 596,000 10,000 10,000
Mar-10 425,000 242,000 273,000 515,000 10,000 10,000 5,000 5,000 450,000 43,500 523,500 416,500
375,000 41,000 436,000 425,000
Jan-10 150,000 140,000
Feb-10 140,000 152,000 292,000
Mar-10
290,000
152,000 121,000 273,000
Total 300,000 280,000 304,000 242,000 1,126,000
Jan-10 240,000 85,000
Feb-10 255,000 120,000 375,000
Mar-10
325,000
360,000 90,000 450,000
Total 320,000 340,000 480,000 360,000 1,500,000
Jan-10 10,000
Feb-10 30,000 11,000 41,000
Mar-10
Total 40,000 44,000 42,000 126,000
10,000
33,000 10,500 43,500
Q3 (4)
Particulars To Material To Labour To Manufacturing Expenses Conversion Process A/C Units Amount Particulars 1,000 20,000 By Normal Loss 10,000 By Abnormal Loss (Note 1) 7,550 By Finishing Process A/C 1,000 37,550 Units 50 50 900 1,000 Amount 1,976 35,574 37,550
Note 1: Abnormal Loss Abnormal Loss (Units) = Input - Output - Normal Loss = 1000 - 900 -50 = 50 Abnormal Loss (Cost) Cost per unit of normal output = total cost/ (number of units introduced in the process-normal loss units) = 37550/1000 Cost = Rs 39.53 per unit * 50 units = 1976 Finishing Process A/C Amount Particulars 900 35,574 By Normal Loss 10,000 By Finished Stock 5,000 3,450 10 667 910 54,691
Particulars To Conversion Process A/C To Material To Labour To Manufacturing Expenses To Abnormal Gain (Note 2)
Units
Units
Amount 90 820 54,691
910
54,691
Note 2: Abnormal Gain Units Cost per unit Total Cost
10 66.70 666.96
Q3 (5-I)
Amount (in lakhs) 100 75 25 5 20
Particulars Sales Less: Variable Cost Contribution (Note 1) Less: Fixed Cost Profit Note 1 P/V Ratio = contribution/sales 25% = Contribution/100 Contribution =
25
Break Even Point = Fixed Cost/PV ratio BEP =
20
Q3 (5-II)
Particulars Units Cost High Low Method Variable cost per unit = Particulars Variable Cost Fixed Cost Total Cost May 10,000 35,000 3 May 30,000 5,000 35,000 June 45,000 5,000 50,000 June 15,000 50,000
Q3 (5-III)
Sales to earn desired profit = (Fixed Cost + Desired Profit) / PV Ratio Fixed Cost 180,000 Profit 60,000 PV Ratio 40% Sales to earn an annual profit of 60000 =
600,000
nits) = 37550/1000
Q4
Option to purchase component from supplier Particulars Variable Cost (Per Unit): Materials Labour Other Variable Expenses Price Quoted by Supplier Total Notes Zen motors incurrs a fixed cost of 1,500,000 (150 * 10000 units). This cost will be incurred even if the component is purchased from supplier and hence the same is not considered for decision making. Existing 300 75 250 625 Purchase From Outside 700 700
Variable cost per unit is low when the component is manufactured inhouse. If the component is purchased from supplier, Zen motors would incurr an additional cost of 75 per unit. Hence it would be beneficial for Zen motors to produce the component inhouse. Option to purchase component from supplier and use resources to manufacture another product Particulars Existing Purchase From Outside Variable Cost (Per Unit): Materials 300 Labour 75 Other Variable Expenses 250 Opportunity cost for new product (Note 1) 125 Price Quoted by Supplier 700 Total 750 700
In this case Zen motors may purchase component from supplier and use available resources to make another product. If the component is manufactured in house, Zen motors will have to forego a contribution margin of 125 per unit on the new product which is not beneficial.
Note 1: Particulars Selling Price Less: Variable Cost Material Labour Other Variable Expenses Contribution Per Unit 650 200 75 250 125

Standard (I Unit Produced) Particulars

Uploaded by

Copyright:

Available Formats

Standard (I Unit Produced) Particulars

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Standard (I Unit Produced) Particulars

Uploaded by

Copyright:

Available Formats

Q3 (1)

Cost Sheet for the year ended.. Particulars Amount

Direct Wages/Productive wages

Add : Opening stock of finished goods Less : Closing stock of FG

Salesmen's incentives Sales promotion expenses

1,030,800 169,200 1,200,000

Standard material cost for actual production - Ac 37,200

Actual Quantity (Standard Rate - Actual Rate) 13,200

Standard Rate (Standard Quantity - Actual Quant 24,000

325,000 10,000 355,000 265,000

Feb-10 265,000 304,000 292,000 596,000 10,000 10,000

375,000 41,000 436,000 425,000

Jan-10 150,000 140,000

Feb-10 140,000 152,000 292,000

152,000 121,000 273,000

Total 300,000 280,000 304,000 242,000 1,126,000

Jan-10 240,000 85,000

Feb-10 255,000 120,000 375,000

360,000 90,000 450,000

Total 320,000 340,000 480,000 360,000 1,500,000

Feb-10 30,000 11,000 41,000

Total 40,000 44,000 42,000 126,000

33,000 10,500 43,500

Amount 90 820 54,691

Note 2: Abnormal Gain Units Cost per unit Total Cost

Break Even Point = Fixed Cost/PV ratio BEP =

You might also like