Question

URGENT!!
5.From the following, prepare a cost sheet and the price to be quoted.

1.1.2018 31.12.2018

Raw materials 20,000 32,000

Work-in-progress 26,500 14,000

Finished Goods 16,000 18,000

Purchases of raw materials 90,000 Carriage inwards 2,000 Direct wages 40,000

Direct expenses 15,000 Works overheads 22,500 Administration overheads 10,000

Selling and distribution overheads 14,000 Sales 2,20,000.

The Company wants to Quote the price for the order received from the customer, where the

material required is 4000 and labour 3000. Expected profit 25% margin on sales.

Answer 1

Statement of Cost sheet on 31.12.2018

Particulars	Amount
Opening stock of Raw material	20000
Add:Purchase of Raw materials(inculding carrige inward)	92000
Less:Closing stock of raw materials	-32000
Raw material consumed	80000
Add:Direct wages	40000
Add:Direct Expenses	15000
Prime costs	135000
Add: Works overheads	22500
Gross factory costs	157500
Add:opening work in progress	26500
Less:ending work in progress	14000
Net factory costs	170000
Add:Administration overheads	10000
Cost of Production	180000
Add:Opening stock of finish goods	16000
Less:Ending stock of finish goods	18000
Cost of goods sold	178000
Add:selling & distribution overheads	14000
Cost of Sales	192000
Profits (balancing figure)	28000
Sales	220000

Statement showing the price to be charged for order received from customer

Particulars	Amounts
Material Required	4000
Labour Required	3000
Total costs	7000
Add:Profits 25%on sales or 1/4 on sales,1/3 on costs (7000/3)	2333
Selling price or quoted price for order	9333