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? Example Question Cost Sheet

The document provides a series of cost calculations for a manufacturing company, detailing various costs such as direct materials, labor, factory overheads, and selling expenses. It includes multiple examples and questions that require the preparation of cost sheets and the calculation of profits based on given data. Each example follows a structured approach to determine prime costs, factory costs, cost of production, and ultimately profit.

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michealmulondo74
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12 views6 pages

? Example Question Cost Sheet

The document provides a series of cost calculations for a manufacturing company, detailing various costs such as direct materials, labor, factory overheads, and selling expenses. It includes multiple examples and questions that require the preparation of cost sheets and the calculation of profits based on given data. Each example follows a structured approach to determine prime costs, factory costs, cost of production, and ultimately profit.

Uploaded by

michealmulondo74
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

✅ EXAMPLE 2: Another Cost Sheet (Exam Style)

📊 Given Data
 Direct Materials Consumed = 20,000
 Direct Labour = 10,000
 Factory Overheads = 50% of Labour
 Administration Overheads = 20% of Factory Cost
 Selling Overheads = 5,000
 Opening WIP = 2,000
 Closing WIP = 1,000
 Opening Finished Goods = 3,000
 Closing Finished Goods = 2,000
 Sales = 60,000

🔹 Step 1: Prime Cost


Prime Cost = Materials + Labour
= 20,000 + 10,000
= 30,000

🔹 Step 2: Factory Overheads


Factory Overheads = 50% of Labour
= 50% × 10,000
= 5,000

🔹 Step 3: Factory Cost


Factory Cost = Prime Cost + Factory Overheads
= 30,000 + 5,000
= 35,000

🔹 Step 4: Cost of Production


Cost of Production = Factory Cost + Opening WIP –
Closing WIP
= 35,000 + 2,000 – 1,000
= 36,000

🔹 Step 5: Administration Overheads


Admin Overheads = 20% of Factory Cost
= 20% × 35,000
= 7,000

🔹 Step 6: Cost of Production (Final)


= 36,000 + 7,000
= 43,000

🔹 Step 7: Cost of Goods Sold


COGS = 43,000 + 3,000 – 2,000
= 44,000

🔹 Step 8: Total Cost


Total Cost = 44,000 + 5,000
= 49,000

🔹 Step 9: Profit
Profit = Sales – Total Cost
= 60,000 – 49,000
= 11,000
🔹 Example Question
A manufacturing company provides the following data for the year:
 Direct Materials Consumed = 50,000
 Direct Labour = 30,000
 Direct Expenses = 5,000
 Factory Overheads = 20,000
 Opening Work-in-Progress = 10,000
 Closing Work-in-Progress = 8,000
 Opening Finished Goods = 12,000
 Closing Finished Goods = 9,000
 Selling & Distribution Overheads = 6,000
 Sales = 1,50,000
👉 Required: Prepare a Cost Statement and find the Profit

📊 Given Data
 Direct Materials = 12,000
 Direct Labour = 8,000
 Direct Expenses = 2,000
 Factory Overheads = 6,000
 Opening WIP = 3,000
 Closing WIP = 2,000
 Opening Finished Goods = 4,000
 Closing Finished Goods = 3,000
 Selling & Distribution Overheads = 5,000
 Sales = 50,000
 Units Produced = 1,000
📊 Given Data
 Direct Materials Consumed = 20,000
 Direct Labour = 10,000
 Factory Overheads = 50% of Labour
 Administration Overheads = 20% of Factory Cost
 Selling Overheads = 5,000
 Opening WIP = 2,000
 Closing WIP = 1,000
 Opening Finished Goods = 3,000
 Closing Finished Goods = 2,000
 Sales = 60,000
✅ Question 2 (With Stock Adjustments)
Prepare a Cost Sheet and calculate Cost of Production:
 Direct Materials = 20,000
 Direct Labour = 12,000
 Factory Overheads = 6,000
 Opening WIP = 4,000
 Closing WIP = 2,000
👉 Required:
 Prime Cost
 Factory Cost
 Cost of Production

✅ Question 3 (Full Cost Sheet)


From the following, prepare a complete Cost Sheet and determine profit:
 Direct Materials = 25,000
 Direct Labour = 15,000
 Factory Overheads = 10,000
 Opening WIP = 5,000
 Closing WIP = 3,000
 Opening Finished Goods = 6,000
 Closing Finished Goods = 4,000
 Selling & Distribution Overheads = 7,000
 Sales = 80,000
👉 Required:
 Cost of Production
 Cost of Goods Sold
 Total Cost
 Profit

✅ Question 4 (With Percentages – Exam Favorite 🔥)


Prepare a Cost Sheet:
 Direct Materials = 30,000
 Direct Labour = 20,000
 Factory Overheads = 50% of Labour
 Administration Overheads = 10% of Factory Cost
 Selling Overheads = 8,000
 Opening WIP = 3,000
 Closing WIP = 2,000
 Sales = 100,000
👉 Required:
 Cost of Production
 Total Cost
 Profit

✅ Question 5 (Cost Per Unit)


A company produced 2,000 units.
 Direct Materials = 40,000
 Direct Labour = 20,000
 Factory Overheads = 10,000
 Selling Expenses = 6,000
👉 Required:
 Total Cost
 Cost per Unit

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