sold:;Chapter- (2)
Part- (B)https://www.tipshotels.com/https://www.tipsnews24.com/
Cost Concepts and Classifications [ব্যয়ের ধারণা ও শ্রেণীবিভাগ]
Exercise-01. From the following particulars a cost sheet.
Tk
Raw materials used 34,000
Work-in process (1-3-12) 5,200
Work-in-process (31-3-12) 6,500
Finished goods (1-312) 10,000
Finished goods (31-3-12) 8,000
Direct wages: 14,000 hours @ Tk 2 per hour
Direct Expenses 5,500
Factory supplies 4,200
Indirect labor 8,000
Miscellaneous factory expenses 5,500
Administrative expenses 12,000
Selling expenses 13,000
Profit 15% on sale
[ Ans : 1,30,470 ]
Cost Concepts and Classifications [ব্যয়ের ধারণা ও শ্রেণীবিভাগ]
Cost Concepts and Classifications [ব্যয়ের ধারণা ও শ্রেণীবিভাগ]
Exercise-02. The following information is obtained form the cost records of a manufacturing company:
Total manufacturing cost Tk 2,50,000
Finished goods inventory (closing) 42,000
Cost of finished goods 2,30,000
Work-in process, (closing) 20,000
Factory overhead was applied 30% of total manufacturing cost and direct labor cost 15% of factory overhead. Administrative and selling total expenses, amounted to Tk 40,000. Total sales during the period was Tk 2,60,000.
Prepare a cost sheet from the above informations.
[ Ans : 32,000 ]
Cost Concepts and Classifications [ব্যয়ের ধারণা ও শ্রেণীবিভাগ]
Exercise-03. As a cost accountant of Meena Ltd. you have collected the following relevant informations:
Direct Materials Tk 1,00,000
Direct Labour 80% of Material
Factory on Cost: 50% of Direct Labour
Office cost is 75% of factory cost.
Selling on Cost 50% of Office on Cost
Profit 25% of Sales.
Required: (1) Prime cost (2) Factory Cost (3) Cost of production (4) Cost of sales (5) Sales (6) Percentage of total cost of sales on sales.
[ Ans : 75% ]
Cost Concepts and Classifications [ব্যয়ের ধারণা ও শ্রেণীবিভাগ]
Exercise-04. The Rico Watch Co. Ltd, manufactures different types of watches. The sales tevenue for the year were Tk 9,45,000. The cost related to production during the year and the inventories in different dates were as follows:
Start of the period End of the period
Work-in-process Tk 75,000 Tk 60,000
Finished goods 35,000 54,000
Direct material purchased during the year wear Tk 2,05,000. Material used in production Tk 1,76,000. Direct labor cost Tk 2,50,000 and factory overhead costs Tk 2,37,500 general and administrative expenses Tk 1,17,000 selling expenses Tk 55,000. Prepare a statement showing (1) Cost of goods manufactured. (2) Cost of goods available for sale. (3) Cost of goods sold. (4) Total Cost of sales and (5) Profit or Loss.
[ Ans: 1,13,500 ]
Cost Concepts and Classifications [ব্যয়ের ধারণা ও শ্রেণীবিভাগ]
Exercise-05. Last month cyber Games retailer had total sales of Tfk 29,00,000 selling expenses of Tk 4,20,000 and administrative expenses of Tk 3,60,000. The company had beginning merchandise inventory of Tk 4,80,000 purchased additional merchandise inventory for Tk 19,00,000 and had ending merchandise inventory of Tk 3,40,000.
Required : Prepare an income statement for the company for the month.
[ Ans : 80,000 ]
Cost Concepts and Classifications [ব্যয়ের ধারণা ও শ্রেণীবিভাগ]
Exercise-06. Pubali Company manufactures special machines made to customers specification. The following information was available for the month of June-2016.
1st June (Tk) | 30 the June (Tk) | |
Inventory of material
Work in process Purchases of materials Direct labor cost Factory overhead |
62,000
36,000 |
70,000
1,01,200 2,00,000 1,65,000 85,800 |
Required : Prepare a cost of goods manufactured statement for June, 2016.
[ Ans : 3,77,600 ]
Exercise-07. The following data are related to the Tazin Company :
Inventories Ending Beginning
Tk Tk
Finished goods 96,000 1,10,000
Worki-in-process 80,000 70,000
Direct materials 95,000 90,000
Costs incurred during the period : Tk
Cost of goods available for sale 6,84,000
Total manufacturing costs 5,84,000
Factory overhead 1,67,000
Direct materials used 1,93,000
Required : (1) Direct labour cost (2) Direct materials purchased during the period.
Cost Concepts and Classifications [ব্যয়ের ধারণা ও শ্রেণীবিভাগ]
Exercise-08. Moon star Company provided the data for May, 2012:
Sales Tk 72,000. Marketing expenses Tk 3,600 administrative expenses Tk 72,000 other expenses Tk 360 purchase Tk 36,000 factory expenses Tk 10,000 direct labour Tk 15,000.
Inventories Baginning (Tk) Ending ( Tk )
Finished goods
Work-in-process 6,000 5,000
Materials 5,700 11,600
Required : Cost of goods sold statement.
Exercise-09. The following information is obtained from the cost record of ABC manufacturing company :
Tk
Total manufacturing cost 3,00,000
Closing inventories of finished goods 42,000
Cost of finished goods 2,80,000
Work-in-progress (Closing) 20,000
Factory overhead was applied 30% of total manufacturing cost and direct labour cost was 15% of factory overhead. Administative and selling expenses Tk 45,000. Total sales during the period was Tk 3,10,000.
Prepare a cost sheet form the above information.
Cost Concepts and Classifications [ব্যয়ের ধারণা ও শ্রেণীবিভাগ]
Exercise-10. The following data are related to Depu Limited :
Inventories Opening Ending
Tk Tk
Material 5,000 3,000
Work-in-process 8,000 6,000
Finished goods 6,500 4,500
Direct labour TK 7,500, Administrative expense Tk 3,000 Material purchase Tk 40,000. Factory expense Tk 4,000.
Required : Cost of good sold.
Cost Concepts and Classifications [ব্যয়ের ধারণা ও শ্রেণীবিভাগ]
Part- (C)
Exercise-01. The following information is obtained from a manufacturing concern for a year ended 31 st December :
Inventories : 1st January 31st December
Tk Tk
Raw 11,200 9,200
Work-in-progress 4,300 5,200
Finished Stock 7,400 9,100
Purchase of raw materials Tk 1,24,000
Direct wages :
Department A-32,000 hours @ Tk 4
Department B-24,000 hours @ Tk 5
Factory overhead :
Fixed- Tk 76,000
Variable-Tk 1.75 per direct labour hour
Administrative expenses- 7.5% of works cost
Selling expenses-60% of administrative expenses.
Net profit 20% of sales
Ascertain works cost, cost of goods finished, total cost of goods sold and sales.
[ Ans :A.M : Tk 5,48,000, T k 5,47,100, Tk 6,11,160, Tk 7,63,950 ]
Cost Concepts and Classifications [ব্যয়ের ধারণা ও শ্রেণীবিভাগ]
Exercise-02. From the following particulars prepare a cost of goods sold statement & net Income for the year.
Inventory of raw materials (1-1-16) 20,000
Inventory of tinished goods (1-1-16) 50,000
Purchase of raw materials 6,00,000
Wages (9/10 direct) 4,50,000
Works overhead charges 70,000
Inventory of raw materials (31-12-16) 15,000
Inventory of finished goods (31=12-10) 48,000
Sales of finished goods 13,52,000
Selling expenses 12,000
Administration expenses (10% of works cost )
Sale of scrap 1,000
[ Ans : Cost of goods sold Tk 11,26,000.]. [Net Income: Tk 1,0.1,600 ]
Cost Concepts and Classifications [ব্যয়ের ধারণা ও শ্রেণীবিভাগ]
Exercise-03. Various cost and sales data for Medco, Inc. are given below for the year 2016.
Purchases of raw materials
Raw materials inventory, January-1 Radw materials inventory, December 31 Depreciation. factory Insurance, factory Direct labour cost Maintenance, factory Administrative expenses Sales Utilities, factory Supplies, factory Selling expenses Indirect labour Work in process inventory, January-1 Work in process inventory, December 31 Finished goods inventory, January 1 Finished goods inventory, December 31 |
Tk 90,000
10,000 17,000 42,000 5,000 60,000 30,000 70,000 4,50,000 27,000 1,000 80,000 65,000 7,000 30,000 10,000 40,000 |
Required:
- Prepare a cost of goods sold statement, and
- Prepare an income statement for 2012.
[ Ans : Tk 2,60,000, (2) Tk 40,000 ]
Cost Concepts and Classifications [ব্যয়ের ধারণা ও শ্রেণীবিভাগ]
Exercise-04. Fazell Company, a manufacturing firm, has supplied the following information from its for the last calendar year.
Direct labour cost: Tk 2,40,000
Purchases of direct material: 95,000
Freight-in on materials: 1,000
Factory supplies used: 3,570
Factory insurance:
Commission paid 35,000
Factory supervision and indirect labour: 1,60,300
Advertising 24,000
Material handling F.O.H 26,750
Work in inventory. January-1 1 2,17,000
Work in inventory, December 31
Direct material inventory: January-1 16,000
Derect material inventory, Kecember 31
Finished goods inventory, January-1 1: 56,000
Finished goods inventory, December 31: 37,000
Required :
- Prepare a cost of goods manufactured statement.
- Prepare a cost of goods sold statement.
[ Ans : (1) Tk 6,33,620; (2) Tk 6,52,620 ]
Cost Concepts and Classifications [ব্যয়ের ধারণা ও শ্রেণীবিভাগ]
Exercise-05. Following data are collected from the records of a manufacturing concern,
Raw material used Tk 3,200
Work-in process (1-3-16) 5,200
Work-in process (31-3-16): 6,500
Finished goods (1-3-16)
Finished good (31-3-16): 8,070
Direct wages : 1,400 hours @ Tk 2 per hour
Direct expenses: 7,200
Indirect materials (Factory): 4,200
Indirect labour (Factory): 9,100
Factory miscellaneous Expenses: 7,300
Administrative expenses:
Fixed 6,000
Variable-10% prime cost
Selling expenses : $3,000
Fixed
Variable 5% of cost of goods manufactured
Profit 15% on sales
Prepare a statement showing the following : Prime cost , Manufacturing cost of goods manufactured, cost of goods sold, total cost, and sales.
[ Ans : (1) 13,200; (2) 33,800; (3) 32,500; (4) 38,130; (4) 59,244 ]
Cost Concepts and Classifications [ব্যয়ের ধারণা ও শ্রেণীবিভাগ]
Exercise- 06. The Noor Chemical Companystarted production from 1st January. From the following particulars obtained from the books of account, calculate cost of materials and prepare a cost sheet showing cost of goods sold and nett profit
Taka
Total Manufacturing Cost (Works Cost):
Direct wages paid: 72,500
Sales 2,67,000
Administrative expenses:
Selling and Distribution expenses: 11,300
Direct wages accrued:
Work-in-progress, 31st December. 15,000
Finished goods, 31st December, 22,000
Factory Overhead constitutes 120% of the direct labour cost.
[Ans : Tk 1,05,000 Tk 2,33,000 Tk 2,700 ]
Cost Concepts and Classifications [ব্যয়ের ধারণা ও শ্রেণীবিভাগ]
Exercise-07. From the following particulars, prepare a statement showing the cost of goods, total cost and sales :
Inventories at the beginning :
Tk
Raw materials 6,050
Work-in process: 5,100
Finished goods: 6,500
Diret wages:
Raw materials purchased:
Factory overhead : 2/3 rds of direct wages
Administrative expenses : 20% of works cost
Selling expenses : 5% of sales
Profit: 15% of sales.
Inventories at the end :
Raw materials: 4,500
Work-in process:
Finished goods: 7,500
[ Ans : A.M : Tk 33,550, Tk 42,712.5, Tk 50,250 ]
Cost Concepts and Classifications [ব্যয়ের ধারণা ও শ্রেণীবিভাগ]
Exercise-8. From the following particulars, prepare a statement showing (a) Works cost (b) Cost of goods manufactured (c) Cost of goods sold (d) Total cost of sales and (e) Profit :
Opening Closing
Stocks on hand : Tk Tk
Raw materials 7,400 8,600
Work-in-process 12,300 16,000
Finished goods 11,500 9,700
Factory supplies 2,400 3,000
Packing materials 2,000 1,800
Purchases :
Paw materials 64,000
Factory supplies 6,000
Packing materials 4,000
Direct labour 45,300
Cost Concepts and Classifications [ব্যয়ের ধারণা ও শ্রেণীবিভাগ]
Factory expenses 9,600
Depreciation of Machinary 5,400
Office expenses: 3,500
Distribution charges: $3,000
Selling expenses: 4,200
Managing Director’s remuneration: 7,500
Sales Manager’s remuneration: 6,000
Sales 1,68,000
[ Ans : (a) Tk 1,28,500; (b) Tk 1,24,800; (c) Tk 1,26,600; (d) Tk 1,55,000; (e) Tk 13,000 ]
Cost Concepts and Classifications [ব্যয়ের ধারণা ও শ্রেণীবিভাগ]
Exercise-09. The cost records of a manufacturing concern showed the following balances :
1st January 31st December
Tk Tk
Raw materials 12,000 9,000
Work-in-progress: 21,900 19,500
Finished goods (120 units): 32,400 ?
Further information relating to the year is as follows :
Raw materials purchased: 1,62,200
Conversion cost: 2,12,000
Sales ( 1,500 units including opening stock ) 4,44,000
Finished goods on hand at close are 80 units 60% of the conversion cost constitutes direct wages. Administrative expenses are 25% of factory overhead and selling expenses 4% of sales/
You are required to calculate the number of units produced and the value of closing stock. Also prepare a statement showing the cost of goods sold and the nett profit.
[Ans : A.M : Tk 20,800 Tk 3,91,200 Tk 13,840 ]
Cost Concepts and Classifications [ব্যয়ের ধারণা ও শ্রেণীবিভাগ]
Exercise-10. The Apex Company produce different types of leather goods. The sales revenue for the year was Tk 12,00,000. The cost-related different information during the year were as follows :
Particulars Tk
Raw material purchased: $50,000
Freight in 2,000
Opening work-in-process 80,000
Opening finished goods 40,000
Opening raw materials 2,50,000
Closing work-in-process 70,000
Closing finished goods 60,000
Closing Raw materials 60,000
Productive wages 1,70,000
Changeable expenses 50,000
Factory overhead: 2,50,000
Selling expenses:
General and administrative expenses 10,000
Sale of scrap 5,000
Prepare a statement showing the following:
- Raw material used. (2) Prime cost (3) Cost of manufacturing (4) Cost of goods manufactured (5) Cost of goods available for use (6) Cost of goods sold (7) Cost of sales (8) Profit of loss.
Exercise-11. A manufacturing company produces bicycles. The company had 260 units of opening inventory costing Tk 700 per unit in 2014.
During the year 2014, the company sold 2,150 bicycles at a gross profit of 20% on sale. The cost of material per unit was Tk 420. Direct labour cost per bicycle was 40 hours at Tk 4 per hour. Factory overhead was charged at Tk 5 per direct labour hour. Administrative and selling expenses amounted to Tk 1,20,000. The finished inventory at close was 110 units.
Prepare :
- Statement of cost of goods sold.
- Income statement.
Cost Concepts and Classifications [ব্যয়ের ধারণা ও শ্রেণীবিভাগ]
Exercise-12. The following data relate to XYZ Ltd :
Detsils Tk
Inventory of finished goods 01-01-2014 70,800
Inventory of raw materials 01-01-2014 33,280
Purchase of raw materials 7,59,200
Productive wases: 5,16,880
Sales of finished goods /sales
Inventory of finished goods: 31-12-2014: 78,000
Inventory of raw materials 30-12-2014 35,360
Work manager’s salary: $50,000
Indirect wages:
Fuel 15,000
Depreciation of plant 15,000
Indirect raw materials 10,000
Tools used in production 98,220
Administrative expenses 30,161
Salary to the managing director: 40,000
Required :
- Prepare a cost sheet for the year.
- Compute total cost of a plant and find out the price of a tender for another plant to be submitted. It is estimated that the cost of raw materials required for the tender will be Tk 52,000 and direct wages Tk 31,200. The tender is to be made at a profit of 20% on selling price.
Cost Concepts and Classifications [ব্যয়ের ধারণা ও শ্রেণীবিভাগ]
Exercise-13. Selected account balances for the year ended December 31 are provided below for salkat Company.
Selling and administrative salaries Tk 1,10,000
Purchases of raw materials Tk 2,29,000
Direct labour ?
Advertising expense: Tk 80,000
Manufacturing overhead: Tk 2,70,000
Sales commissions: Tk 50,000
Inventory balances at the beginning and end of the year were as follows:
Beginning of the Year End of the year
Raw materials Tk 40,000; Tk 10,000
Work in process ? Tk 35,000
Finished goods Tk 50,000 ?
The total manufacturing costs for the year were Tk 6,83,000, the goods available for sales totalled Tk 7,40,000 and the cost of goods sold totalled Tk 6,60,000.
Required :
- Prepare a schedule of cost of goods manufactured and the cost of goods sold section of the company’s income statement for the year.
- Assume that the amounts given above are for the equivalent of 40,000 units produced during the year. Compute the average cost per unit for direct materials used and the average cost per unit for manufacturing overhead.
[ Ans : (1) 6,90,000; (2) 6,60,000 ]
Cost Concepts and Classifications [ব্যয়ের ধারণা ও শ্রেণীবিভাগ]
Exercise-14. From the following particulars of Kader Manufacturing Company, prepare (1) Statement of cost of goods sold and (2) an income statement for the year ended 31st December 1999
Tk
Purchase of raw material: 2,60,000
Sales 7,50,000
Direct labour 95,000
Inventory on 1st January 1999
Raw material 45,000
Work-in-progress 1,55,000
Finished goods:
Inventory on 31st December, 1999
Raw material ?
Work-in-progress ?
Finished goods: 52,000
Purchase returns
Sales returns
Factory supplies :
Purchase 6,000
Opening inventory:
Closing inventory:
Indirect labour
Office expenses:
Sales expenses
Heat, light and power 25,000
Depreciation :
Factory building 12,000
Machinery 27,000
Property taxes (75% Factory 10% to office and 15% to sales ) 6,000
Repair and maintenance: 10,000
Raw materials used 2,56,000
Insurance (50% Factory 25% office and 25 % to selling ) 12,000
Cost of goods sold 4,75,000
Cost Concepts and Classifications [ব্যয়ের ধারণা ও শ্রেণীবিভাগ]
Exercise-15. The following particulars are extracted from the books of A Engineering company :
Tk
Inventory of Finished goods (1-1-2018) 28,000
Inventory of raw materials (1-1-2018) 12,800
Inventory of finished goods (31/12/2018) 30,000
Inventory of raw materials (31-12-2018) 13,600
Purchase of raw materials 2,92,000
Direct wages: 1,98,800
Works overhead charges: 43,736
Administrative and selling overhead 88,950
Sales of finished goods: 5,92,000
From the above paragraphs, prepare a statement showing
- The cost of materials used
- Prime cost
- The work cost
- Total cost
- The percentage of works overhead to productive wages and
- The percentage of administration and selling overhead to works cost.
- The Company estimates the cost of a tender, which costs materials of Tk 20,000 and direct wages of Tk 12,000. The tender is to be made at a nett profit of 20% on the selling price. Statement the amount of the tender price on the basis of above information.
[Ans : (a) 2,91,200; (b) 4,90,000; (c) 6,20,686; (e) 22%; (f) 16,67%; (g) 50,518 ]
Exercise-16. The particulars of a completed job are as follows:
Direct materials 1,200 kgs @ Tk 15
Direct labour: 750 hours @ Tk 4
Cost Concepts and Classifications [ব্যয়ের ধারণা ও শ্রেণীবিভাগ]
Fixed overhead TK 2.40 per direct labour Variable overhead 80% of direct labour cost.
selling price of the job is Tk 32,760.
It is necessary to quote the price of a new job, which require 20% more materials and 30% more labour hours to complete. The price of materials and the labour hour have increased by 10% and 15%, respectively.
What price should be quoted for the new job for earning the same percentage profit on cost?
[ Ans : 43,723 ]