Kidz Company manufactures and sells two models of baby toys namely, Max and Pro. During the Financial Year 2024-25, 1,500 units of Max and 3,600…

Preparation of Cost Sheet for FY 2024-25 Particulars Max (₹) Pro (₹) Total (₹) Direct materials 42,000 63,000 1,05,000 Direct wages (Working note- (i)) 55,000 66,000 1,21,000 Prime cost 97,000 1,29,000 2,26,000 Work overhead (50% of labour cost) 27,500 33,000 60,500 Factory Cost/Work Cost 1,24,500 1,62,000 2,86,500 Administration/Office Overhead (20% of work cost) 24,900 32,400 57,300 Cost of production 1,49,400 1,94,400 3,43,800 Less: Closing stock (Working note- (ii)) (59,760) (38,880) (98,640) Cost of goods sold 89,640 1,55,520 2,45,160 Selling and distribution overhead 27,000 (30x 900) 57,600 (20x 2,880) 84,600 Cost of sales/ Total cost 1,16,640 2,13,120 3,29,760 Profit (20% on sales or 25% of cost) 29,160 53,280 82,440 Sales value 1,45,800 2,66,400 4,12,200 Selling price per unit 162 92.5 Working Notes: (i) Direct labour cost per unit of Pro = M Direct labour cost per unit of Max = 2 M Total Direct labour cost = M x 3,600 units + 2M × 1,500 units 1,21,000 = 3,600 M + 3,000 M M = 18.333 Therefore, Direct labour Cost per unit of Max = 2 x 18.33 = 36.667 Total labour cost of Pro = 18.333 x 3,600 units = 66,000 Total labour cost of Max = 36.667 x 1,500 units = 55,000 (ii) Value of closing stock Particulars Max (units) Pro (units) No. of units produced 1,500 3,600 No. of units sold 60% of 1,500 = 900 80% of 3,600 = 2,880 Closing Stock 600 720 Max = (1,49,400/1,500) x 600 = 59,760 Pro = (1,94,400/3,600) x 720 = 38,880 Note: If a student assumes Office overheads as general overheads, then it will be part of cost of sales.