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Direct material - 100000
Direct labour - 50000
Factory overhead - 20% on prime cost
Office and administration overhead - 20% on cost of production
Selling and distribution overhead -20% on cost of production
profit - 20% on sale
prepare cost sheet.?
Direct labour - 50000
Factory overhead - 20% on prime cost
Office and administration overhead - 20% on cost of production
Selling and distribution overhead -20% on cost of production
profit - 20% on sale
prepare cost sheet.?
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Direct material - 100000Direct labour - 50000Factory overhead - 20% on...
Cost Sheet Preparation
Cost sheet is a statement that shows the various costs incurred at different stages of production. It helps in analyzing the cost of production and determining the selling price of the product.
Direct Material
- Direct material cost is Rs. 100,000.
Direct Labour
- Direct labour cost is Rs. 50,000.
Factory Overhead
- Factory overhead is calculated as 20% of the prime cost.
- Prime cost = Direct material + Direct labour = Rs. 100,000 + Rs. 50,000 = Rs. 150,000
- Factory overhead = 20% of Rs. 150,000 = Rs. 30,000
Office and Administration Overhead
- Office and administration overhead is calculated as 20% of the cost of production.
- Cost of production = Direct material + Direct labour + Factory overhead = Rs. 100,000 + Rs. 50,000 + Rs. 30,000 = Rs. 180,000
- Office and administration overhead = 20% of Rs. 180,000 = Rs. 36,000
Selling and Distribution Overhead
- Selling and distribution overhead is calculated as 20% of the cost of production.
- Selling and distribution overhead = 20% of Rs. 180,000 = Rs. 36,000
Profit
- Profit is calculated as 20% of the sale.
- Profit = 20% of (Direct material + Direct labour + Factory overhead + Office and administration overhead + Selling and distribution overhead) = 20% of Rs. 382,000 = Rs. 76,400
Therefore, the total cost of production is:
Direct material + Direct labour + Factory overhead + Office and administration overhead + Selling and distribution overhead = Rs. 100,000 + Rs. 50,000 + Rs. 30,000 + Rs. 36,000 + Rs. 36,000 = Rs. 252,000
The selling price of the product will be:
Total cost of production + Profit = Rs. 252,000 + Rs. 76,400 = Rs. 328,400
Cost sheet is a statement that shows the various costs incurred at different stages of production. It helps in analyzing the cost of production and determining the selling price of the product.
Direct Material
- Direct material cost is Rs. 100,000.
Direct Labour
- Direct labour cost is Rs. 50,000.
Factory Overhead
- Factory overhead is calculated as 20% of the prime cost.
- Prime cost = Direct material + Direct labour = Rs. 100,000 + Rs. 50,000 = Rs. 150,000
- Factory overhead = 20% of Rs. 150,000 = Rs. 30,000
Office and Administration Overhead
- Office and administration overhead is calculated as 20% of the cost of production.
- Cost of production = Direct material + Direct labour + Factory overhead = Rs. 100,000 + Rs. 50,000 + Rs. 30,000 = Rs. 180,000
- Office and administration overhead = 20% of Rs. 180,000 = Rs. 36,000
Selling and Distribution Overhead
- Selling and distribution overhead is calculated as 20% of the cost of production.
- Selling and distribution overhead = 20% of Rs. 180,000 = Rs. 36,000
Profit
- Profit is calculated as 20% of the sale.
- Profit = 20% of (Direct material + Direct labour + Factory overhead + Office and administration overhead + Selling and distribution overhead) = 20% of Rs. 382,000 = Rs. 76,400
Therefore, the total cost of production is:
Direct material + Direct labour + Factory overhead + Office and administration overhead + Selling and distribution overhead = Rs. 100,000 + Rs. 50,000 + Rs. 30,000 + Rs. 36,000 + Rs. 36,000 = Rs. 252,000
The selling price of the product will be:
Total cost of production + Profit = Rs. 252,000 + Rs. 76,400 = Rs. 328,400
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Direct material - 100000Direct labour - 50000Factory overhead - 20% on prime costOffice and administration overhead - 20% on cost of productionSelling and distribution overhead -20% on cost of productionprofit - 20% on saleprepare cost sheet.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Direct material - 100000Direct labour - 50000Factory overhead - 20% on prime costOffice and administration overhead - 20% on cost of productionSelling and distribution overhead -20% on cost of productionprofit - 20% on saleprepare cost sheet.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direct material - 100000Direct labour - 50000Factory overhead - 20% on prime costOffice and administration overhead - 20% on cost of productionSelling and distribution overhead -20% on cost of productionprofit - 20% on saleprepare cost sheet.?.
Direct material - 100000Direct labour - 50000Factory overhead - 20% on prime costOffice and administration overhead - 20% on cost of productionSelling and distribution overhead -20% on cost of productionprofit - 20% on saleprepare cost sheet.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Direct material - 100000Direct labour - 50000Factory overhead - 20% on prime costOffice and administration overhead - 20% on cost of productionSelling and distribution overhead -20% on cost of productionprofit - 20% on saleprepare cost sheet.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direct material - 100000Direct labour - 50000Factory overhead - 20% on prime costOffice and administration overhead - 20% on cost of productionSelling and distribution overhead -20% on cost of productionprofit - 20% on saleprepare cost sheet.?.
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