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Questions and Answers
What will be the total cost of materials for the next year, assuming a 10% increase?
How are factory overheads calculated for the next year in relation to direct wages?
What will be the total estimated selling price for 1500 TV sets next year, if each is sold at Rs. 6,600?
If direct wages increase by 15%, what will be the new cost of direct wages for the next year?
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Which of the following expenses is NOT included in the cost components for calculating the cost sheet?
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Study Notes
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.
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Description
Test your knowledge on preparing and analyzing cost sheets based on production data. This quiz covers direct and indirect costs, budgeting for future production, and the implications of losses on a company's finances. Assess your understanding of cost management in manufacturing.
