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    EDP Microproject New

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    Tanmay Warthe
    This document summarizes a micro-project on preparing a cost sheet for a selected product. The student selected software as the product and prepared its cost sheet. Key components of a cost sheet include prime cost, factory cost, office cost, and total cost. Prime cost includes direct material, labor, and expenses. Factory cost is prime cost plus factory overhead. Office cost adds office and administration overhead. Total cost incorporates all costs and allows determining the ideal selling price. The cost sheet helps with cost analysis, price setting, cost control, and decision making.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    EDP Microproject New

    Uploaded by

    Tanmay Warthe
    25 views12 pages
    This document summarizes a micro-project on preparing a cost sheet for a selected product. The student selected software as the product and prepared its cost sheet. Key components of a cost sheet include prime cost, factory cost, office cost, and total cost. Prime cost includes direct material, labor, and expenses. Factory cost is prime cost plus factory overhead. Office cost adds office and administration overhead. Total cost incorporates all costs and allows determining the ideal selling price. The cost sheet helps with cost analysis, price setting, cost control, and decision making.

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    EDP Microproject new

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    This document summarizes a micro-project on preparing a cost sheet for a selected product. The student selected software as the product and prepared its cost sheet. Key components of a cost sheet include prime cost, factory cost, office cost, and total cost. Prime cost includes direct material, labor, and expenses. Factory cost is prime cost plus factory overhead. Office cost adds office and administration overhead. Total cost incorporates all costs and allows determining the ideal selling price. The cost sheet helps with cost analysis, price setting, cost control, and decision making.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    25 views12 pages

    EDP Microproject New

    Uploaded by

    Tanmay Warthe
    This document summarizes a micro-project on preparing a cost sheet for a selected product. The student selected software as the product and prepared its cost sheet. Key components of a cost sheet include prime cost, factory cost, office cost, and total cost. Prime cost includes direct material, labor, and expenses. Factory cost is prime cost plus factory overhead. Office cost adds office and administration overhead. Total cost incorporates all costs and allows determining the ideal selling price. The cost sheet helps with cost analysis, price setting, cost control, and decision making.

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    © All Rights Reserved
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    A MICRO-PROJECT ON

    “Select any product and prepare its cost sheet.”

    Submitted 2022-2023
    This micro-project work submitted in partial fulfilment of requirement for the
    Award of diploma in CIVIL ENGINEERING.

    Under the Guidance Of

    Mr. H. S. Kumawat

    (Lecture in Civil engg. Dept.)

    SUBMITTED BY: -

    Sr. No. Name Of Student Roll No.

    1. Sahil M. Kumbhare 33
    GOVERNMENT POLYTECHNIC, BRAMHAPURI
    DIST-CHANDRAPUR
    DEPARTMENT OF CIVIL ENGINEERING

    This is to certify that the following students of this institute have


    carried out this micro-project work on “Select any product and prepare its cost
    sheet.” under the guidance of Mr. H. S. Kumawat lecturer in the Department of
    civil engineering during the session 2022-2023. This work has been done in the
    partial fulfilment of the award for in civil engineering from Maharashtra State
    Board of Technical Education, Mumbai.

    SUBMITTED BY: -

    Sr. No. Name Of Student Roll No.

    1. Sahil M. Kumbhare 33

    Project Guide Head of department

    Mr. H. S. Kumawat Dr . A. W. Pawde


    GOVERNMENT POLYTECHNIC, BRAMHAPURI

    DIST-CHANDRAPUR

    We, the students of Third year of Department of Civil Engineering,


    humbly completed this Micro-project work for time to time as described in this
    report by our own skill and study between the period from 2022-2023. As per
    instruction and guidance of Mr. H. S. Kumawat and following students were
    associated with us for this work. However, quantum of our contribution has been
    approved by the guide.

    SUBMITTED BY: -

    Sr. No. Name Of Student Roll No.

    1. Sahil M. Kumbhare 33

    DATE: / / 2023 PLACE: BRAMHAPURI


    PART A: Micro-Project Proposal
    Topic: - Select any product and prepare its cost sheet.

    1.Breif Introduction : A cost sheet is a statement that shows the various


    components of total cost for a product and shows previous data for comparison.
    You can deduce the ideal selling price of a product based on the cost sheet. A cost
    sheet document can be prepared either by using historical cost or by referring to
    estimated costs. A historical cost sheet is prepared based on the actual cost
    incurred for a product. An estimated cost sheet, on the other hand, is prepared
    based on estimated cost just before the production begins.

    2.Aim: - Select any product and prepare its cost sheet.


    3.Action Plan:-
    Sr. Details of Activity Planned Planned Name of Team
    no Start date Finish date Members

    1. Detailed discussion on / /2023 / /2023 Sahil Kumbhare


    the micro project.

    2. Take guideline with / /2023 / /2023 -//-


    subject teacher on
    given topic

    3. Collection of / /2023 / /2023 -//-


    information on the
    given topic.

    4. Preparation of / /2023 / /2023 -//-


    Proposal

    5. Submission of / /2023 / /2023 -//-


    Proposal to the subject
    teacher
    4.Required Resources:-

    Sr.n Name of Specifications Qty. Remarks


    o Resource/material

    1. Internet As per required 1

    2. Reference Book Entrepreneurship 1


    Development by
    S, Anil Kumar

    3. Laptop Acer 1

    Names with Roll No.

    Mr. Sahil M. Kumbhare (33)

    Guided By: - Mr. H. S. Kumawat


    PART B: Micro-Project Report
    1. Breif Introduction: A cost sheet is a statement that shows the various
    components of total cost for a product and shows previous data for comparison.
    You can deduce the ideal selling price of a product based on the cost sheet. A cost
    sheet document can be prepared either by using historical cost or by referring to
    estimated costs. A historical cost sheet is prepared based on the actual cost
    incurred for a product. An estimated cost sheet, on the other hand, is prepared
    based on estimated cost just before the production begins.
    2. Aim/Benefits of the Micro-Project: Select any software and prepare its
    cost sheet.

    3. Course Outcomes Achieved:


    4. Actual Methodology Followed:
    1. We discuss on the topic
    2. We took guidance from subject teacher about the project
    3. We had literature survey
    4. We have prepared proposal of project
    5. We collect required resources related to project .
    6. We had prepared report
    7. Finally we submitted report of the project.

    5.Actual resources required :


    Sr.no Name of Specifications Qty. Remarks
    Resource/material

    1. Internet As per required 1

    2. Reference Book Entrepreneurship 1


    Development by
    S, Anil Kumar

    3. Laptop Acer 1
    6.Outputs of micro project:-

    What is a cost sheet?

    A cost sheet is a statement that shows the various components of total cost for a
    product and shows previous data for comparison. You can deduce the ideal selling
    price of a product based on the cost sheet.
    A cost sheet document can be prepared either by using historical cost or by
    referring to estimated costs. A historical cost sheet is prepared based on the actual
    cost incurred for a product. An estimated cost sheet, on the other hand, is prepared
    based on estimated cost just before the production begins.

    Importance and objectives of cost sheet :

    Cost sheets help with a number of essential business processes:


    1. Determining cost: The main objective of the cost sheet is to obtain an accurate
    product cost. It gives you both the total cost and cost per unit of a product.
    2. Fixing selling price: In order to fix the selling price of a product, you need to
    create a cost sheet so you can see the details of its production cost.
    3. Cost comparison: It helps the management compare the current cost of a
    product with a previous per unit cost for the same product. Comparing the costs
    helps management take corrective measures if costs have increased.
    4. Cost control: The cost sheet is an important document for a manufacturing unit,
    as it helps in controlling production costs. Using an estimated cost sheet aids in
    monitoring labour, material and overhead costs at each step of production.
    5.Decision-making: Some of the most important decisions management makes are
    based on the cost sheet. Whenever a business needs to produce or buy a
    component, or quote prices for its goods on a tender, managers refer to the cost
    sheet.
    Types of costs in cost accounting :

    Costs are broadly classified into four types: fixed cost, variable cost, direct cost,
    and indirect cost.
    1. Fixed cost: These are costs that do not change based on the number of items
    produced. For example, the depreciating value of a building or the price of a piece
    of equipment.
    2. Variable cost: These costs are tied to a company’s level of production. For
    example, a bakery spends $10 on labor and $5 on raw materials to produce each
    cake. The variable cost changes based on the number of cakes the company bakes.
    3. Operating costs: These are those expenses incurred by an organisation to
    maintain the product on a day to day basis. Traveling cost, telephone expenses,
    office supplies are some of things that come under operating costs.
    4. Direct costs: These costs can be directly associated with production. For
    example, if a furniture manufacturing company takes five days to produce a couch,
    then the direct cost of the finished product includes the raw material cost and labor
    charges for five days.

    Components & elements of total cost :

    Components of total cost are constituted mainly of prime cost, factory cost, office
    cost and cost of sales. Let us take a detailed look at each of these elements:
    1. Prime cost: This comprises direct material, direct wages, and direct expenses. It
    is also called basic cost, first cost, or flat cost. It can be defined as an aggregate of
    the price of the material consumed, the wages involved in production, and the
    direct expenses.

    Prime cost = Direct material + Direct wages + Direct expenses


    Direct material cost usually refers to the cost of raw materials used or consumed
    during a given period. To calculate the amount of raw material actually consumed
    during a given period, you add the opening stock and the amount of material
    purchased, and deduct the closing stock.
    Here is the formula for material consumed:

    Material consumed = Material purchased + Opening stock of material – Closing


    stock of material
    2. Factory cost: This is made up of prime cost plus factory overhead, which
    includes indirect wages, indirect material and indirect expenses. Factory cost is
    also known as works cost, production cost, or manufacturing cost.

    Factory cost = Prime cost + Factory overhead


    3. Office cost: This is also called administration cost or total cost of production.
    Office cost is equal to factory cost plus office and administration overhead.
    4. Total cost or cost of sales: This is the sum of the total cost of production and
    the total of selling and distribution overhead.

    Total cost = Cost of goods sold + Selling and distribution overhead


    In the production process, some units of a product are scheduled to be finished at
    the end of a period. Such incomplete units are called work-in-progress. In such
    situations, while calculating the factory cost of a product unit, it is necessary to
    make adjustment for opening and closing stock to arrive at net factory cost of the
    product. Generally, the cost of these unfinished units include direct material, direct
    expenses, and factory overheads.
    Besides this, the adjustments for inventories need to be made in the following
    manner
    1. Direct material consumed = Opening stock of direct material + Purchases of
    direct material – Closing stock of direct
    2. Works cost = Gross works cost + Opening work in progress – Closing work in
    progress
    3. Cost of production of goods sold = Cost of production + Opening stock of
    finished goods – closing stock of finished goods
    How to Prepare a Cost Sheet?

    Here is a step-by-step guide to preparing a cost sheet:


    Step 1:
    Prime Cost = Direct Material Consumed + Direct Wages + Direct Expenses
    Direct Material Consumed = Direct Material Purchased + OP Stock of Raw
    Material – CL Stock of Raw Material
    Step 2:
    Works Cost = Prime Cost + Factory Overheads + OP Stock Work in Progress – CL
    Stock Work in Progress
    Step 3:
    Cost of Production = Works Cost + Office and Administration Overhead + OP
    Stock of Finished Goods – CL Stock Finished Goods
    Step 4:
    Total Cost = Cost of Production + Selling and Distribution Overheads
    Profit: Sales – Total Cost
    Cost Sheet Example

    Suppose you are preparing a cost sheet for an automobile company for the year
    2020-21. You have to consider the following information to prepare a cost sheet:
    • Direct material consumed – INR 30,00,000
    • Opening stock of raw materials – INR 18,00,000
    • Closing stock of raw materials – INR 2,00,000
    • Direct wages – INR 20,00,000
    • Direct expenses – INR 10,00,000
    • Factory overhead – 100% of direct wages
    • Office and administration overhead – 20% of works
    • Selling and distribution overhead – INR 10,00,000
    • Cost of opening stock for finished goods – INR 2,50,000
    • Cost of closing stock for finished goods – INR 3,50,000
    • Profit on cost – 20%
    Micro Project Evaluation Sheet
    Name of Student: Sahil M. Kumbhare (33) Enrollment No.:- 2001210257

    Name of Programme: Civil Engineering Semester: 6th

    Course Title: Entrepreneurship Development Code: 22032

    Title of the Micro-Project: “Select any product and prepare its cost sheet”

    Course Outcomes Achieved:

    Sr. Characteristic to be assessed Poor Average Good Excellent Sub


    No. (Marks 1- (Marks 4-5) (Mark6-8) (Marks 9-10) Total
    3)

    a)Process and Product Assessment (Convert above total marks out of 6 marks)

    1 Relevance to the course

    2 Literature Review

    3 Completion of the Target as per


    project proposal

    4 Analysis of Data and


    representation

    5 Quality of Prototype/Model

    6 Report Preparation

    b) Indivisible Presentation / Viva (Convert above total marks out of 4 marks)

    7 Presentation

    8 Viva

    (A) (B)
    Individual Presentation / Viva
    Process & Product Assessment ( 4 marks) Total Marks
    10
    (6 marks)

    Comments / Suggestions about team work / Inter-personal communication:


    Name and designation of the teacher:

    Mr. H. S. Kumawat

    Dated Signature: Lecturer


    department of Civil Engineering

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