Cost Sheet Preparation Quiz

Cost Sheet Preparation

• Super Vision Company produced and sold 1,000 TV sets in a year.
• Total cost incurred was Rs. 62,00,000.
• This includes direct costs like materials (Rs. 18,00,000) and direct wages (Rs. 10,00,000).
• Indirect costs include factory overheads (Rs. 6,60,000), office and administration expenses (Rs. 18,00,000), and selling and distribution expenses (Rs. 10,00,000).
• Sale of scrap (Rs. 2,40,000) offsets the total cost to some extent.
• The company sold 1,000 TV sets for a total of Rs. 3,00,000, indicating a significant loss for the year.
• The cost of rectifying defective work is not included in the given information, further details are missing to determine its impact.

Estimated Cost Sheet for the Next Year

• The company expects to produce and sell 1,500 TV sets in the next year.
• Direct materials cost is projected to increase by 10% and direct wages by 15%.
• Factory overheads will be calculated as a percentage of direct wages, similar to the previous year.
• Office overheads and selling overheads will be calculated as a percentage of works cost, similar to the previous year.
• Each TV set is expected to be sold for Rs. 6,600 in the next year.

2000 Cost Data

• The provided data for 2000 shows a breakdown of costs for materials, factory overheads, selling overheads, and distribution overheads.
• There is no information about unit production, sales, or revenue for the year 2000, making it difficult to analyze the company's performance.