The figures listed below are derived from the Trial Balance of EVS & Co. as of 31st March: Dr. (₹) Cr. (₹) Opening Inventories: Finished Stock…

CA Intermediate · Cost and Management Accounting · RTP · May 2025
The figures listed below are derived from the Trial Balance of EVS & Co. as of 31st March: Dr. (₹) Cr. (₹) Opening Inventories: Finished Stock 10,96,000 Raw Materials 19,18,000 Work-in-Process 27,40,000 Office Appliances 2,38,380 Plant & Machinery 63,08,850 Building 27,40,000 Sales 1,35,21,600 Sales Return and Rebates 1,91,800 Cash discount allowed on sales 1,17,820 Materials Purchased 43,84,000 Freight incurred on Materials 2,19,200 Purchase Returns 65,760 Direct employee cost 21,92,000 Indirect employee cost 2,46,600 Drawing and Designing cost 1,37,000 Repairs and maintenance of factory 1,91,800 Heat, Light and Power expenses 8,90,500 Pollution Control Expenses 2,56,190 Sales Commission 4,60,320 Sales Promotion 3,08,250 Distribution Deptt. - Salaries and Expenses 2,46,600 Office - Salaries and Expenses 1,17,820 Packing Cost to make the product marketable 3,15,100 Printing and Stationery expenses 89,050 Bank Charges paid 8,220 Further details are available as follows: (i) Closing Inventories: Finished Goods:15,75,500Raw Materials:24,66,000Work-in-Process:26,30,400 (ii) Outstanding direct employee cost:1,09,600 (iii) Depreciation to be provided on: Office Appliances: 15%Plant and Machinery: 40%Buildings: 10% (iv) 70% of the Heat, Light and Power expenses is related to the Factory and the remaining 30% is equally shared between the Office and Selling Department. Depreciation on Buildings is to be distributed at a similar percentage between the Factory, Office and the Selling Department as that of the Heat, Light and Power. With the help of the above information, you are required to PREPARE a condensed Profit and Loss Statement of EVS & Co. for the year ended 31st March along with the following schedules: (i) Cost of Sales (showing Prime Cost, Gross Works Cost, Cost of production, Cost of Goods Sold and Cost of Sales) (ii) Selling and Distribution Expenses. (iii) Administration Expenses

Suggested Answer and Working Notes:

Profit and Loss Statement of EVS & Co. for the year ended 31st March Particulars (₹) (₹) Gross Sales 1,35,21,600 Less: Returns and rebates (1,91,800) 1,33,29,800 Less: Cost of Sales [See Schedule (i)] (1,20,21,887) Net Operating Profit 13,07,913 Less: Cash discount allowed on sales (1,17,820) Net Profit 11,90,093 (i) Schedule of Cost of Sales Particulars (₹) (₹) Raw Material (Inventory opening balance) 19,18,000 Add: Material Purchased 43,84,000 Add: Freight on Material 2,19,200 Less: Purchase Returns (65,760) 45,37,440 64,55,440 Less: Closing Raw Material Inventory (24,66,000) Materials consumed in Production 39,89,440 Direct employee cost (₹ 21,92,000 +1,09,600) 23,01,600 Prime Cost 62,91,040 Factory Overheads: Indirect employee cost 2,46,600 Drawing and Designing cost 1,37,000 Repairs and maintenance of factory 1,91,800 Heat, Light and Power (₹ 8,90,500 × 70%) 6,23,350 Pollution Control Expenses 2,56,190 Depreciation of Plant (40% of 63,08,850) 25,23,540 Depreciation of Building (10% of 27,40,000 × 70%) 1,91,800 41,70,280 Gross Works Cost 1,04,61,320 Add: Opening Work-in-Process inventory 27,40,000 Less: Closing Work-in-Process inventory (26,30,400) Cost of production 1,05,70,920 Add: Opening Finished Goods inventory 10,96,000 Less: Closing Finished Goods inventory (15,75,500) Cost of Goods Sold 1,00,91,420 Add: Administration Expenses [See Schedule (iii)] 4,25,522 Add: Selling and Distribution Expenses [See Schedule (ii)] 15,04,945 Cost of Sales 1,20,21,887 Note: Cash discount allowed on sales will not form part of Cost Sheet. (ii) Schedule of Selling and Distribution Expenses Particulars (₹) Sales Commission 4,60,320 Sales Promotion 3,08,250 Distribution Deptt. - Salaries and Expenses 2,46,600 Heat, Light and Power (₹ 8,90,500 x 15%) 1,33,575 Depreciation of Building (10% of 27,40,000 × 15%) 41,100 Packing Cost to make the product marketable 3,15,100 15,04,945 (iii) Schedule of Administration Expenses Particulars (₹) Office Salaries and Expenses 1,17,820 Depreciation of Office Appliances (₹ 2,38,380 x 15%) 35,757 Depreciation of Building (10% of 27,40,000 × 15%) 41,100 Heat, Light and Power (₹ 8,90,500 x 15%) 1,33,575 Printing and Stationery expenses 89,050 Bank Charges paid 8,220 4,25,522

Topics: Cost Sheet

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