Krishna Auto Components Pvt. Ltd., an auto-ancillary unit based in Pune manufacturing precision metal parts for two-wheeler assembly lines, prepares…

Cost Sheet (for the quarter ending 31st March 2026) Amount (₹) (i) Raw materials consumed Opening stock of raw materials 2,20,000 Add: Purchase of materials* 11,05,500 Less: Closing stock of raw materials (1,95,000) Raw materials consumed 11,30,500 Add: Direct wages (₹1,50,000 × 180%) 2,70,000 Direct Expenses 1,65,000 (ii) Prime cost 15,65,500 Add: Factory overheads (2,70,000/180%) 1,50,000 Gross Factory cost 17,15,500 Add: Opening work-in-process 1,55,000 Less: Closing work-in-process (1,72,500) (iii) Factory cost 16,98,000 Add: Administration overheads (8% of factory overheads) 12,000 Add: Opening stock of finished goods 2,90,000 Less: Closing stock of finished goods (2,60,000) (iv) Cost of goods sold 17,40,000 Add: Selling & distribution overheads 52,000 (v) Cost of sales 17,92,000 Net Profit 2,68,000 Sales 20,60,000 *Purchase of raw materials = (17,40,000 + 2,60,000 – 2,90,000 – (1,50,000 × 8%) + 1,72,500 – 1,55,000 – (2,70,000 × 100/180) – 1,65,000 – 2,70,000 + 1,95,000 - 2,20,000) = ₹11,05,500 Working Notes Purchase of raw materials = Raw material consumed + Closing stock – Opening stock of raw material Raw material consumed = Prime cost – Direct wages – Direct expenses Factory Overheads = 2,70,000 × 100/180 = ₹1,50,000 Prime cost = Factory cost + Closing WIP – Opening WIP – Factory overheads Factory Cost = Cost of goods sold + Closing stock of Finished goods – Opening stock of finished goods – Administrative overheads Net Profit = Sales - Cost of sales