Class 12 Accounting Unit or Production Cost Determination Notes and Important Questions
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Notes for Class 12 Unit or Production Cost Determination (Accounting) are shown above.
Practice
Important Questions
The opening and closing balance of inventories are as below:
Inventories | Opening | Closing |
|---|---|---|
Finished goods | Rs. 40,000 | Rs. 45,000 |
Work-in-progress | Rs. 25,000 | Rs. 20,000 |
Raw materials | Rs. 40,000 | Rs. 50,000 |
The other information provided by the company for the month ended was as follows:
Purchase of raw material – Rs. 350,000
Direct labor cost – Rs. 420,000
Profit – 25% on sales
Factory overhead – 50% of direct labor cost
Selling expenses – 12% of factory cost
Administration overhead – 15% of factory cost
Required:
Cost sheet
A factory provides the following information:
Items | Rs. |
|---|---|
Material purchase | 4,00,000 |
Carriage on purchase | 20,000 |
Direct wages | 2,00,000 |
Chargeable expenses | 80,000 |
Custom duty | 10,000 |
Indirect material | 20,000 |
Factory rent | 40,000 |
Depreciation on factory machinery | 20,000 |
Depreciation on office furniture | 30,000 |
Depreciation Delivery van | 10,000 |
Carriage outward | 15,000 |
Legal fee | 25,000 |
Audit fee | 18,000 |
Stock of goods
Item | Opening (Rs.) | Closing (Rs.) |
|---|---|---|
Material | 40,000 | 60,000 |
Semi-finished goods | 80,000 | 20,000 |
Finished goods | 1,00,000 | 70,000 |
Profit policy: 20% on cost
Required:
Prepare Cost Sheet.
A food industry showed the following details of its production for the previous year:
Direct materials: Rs. 1,80,000
Direct wages: Rs. 1,20,000
Factory overhead: Rs. 60,000
Office overhead: Rs. 36,000
The industry wants to estimate the total cost and its selling price for next lot.
The cost department estimated the direct cost as follows:
Direct materials: Rs. 40,000
Direct wages: Rs. 30,000
Overheads are to be allocated as below:
Factory overhead: on the basis of direct wages
Office overhead: on the basis of factory cost
Profit: 20% on sales
Required:
Cost Sheet of previous year
Required:
Tender price for next lot
The detail of manufacturing and other cost are as follows:
Direct material: Rs. 100,000
Direct wages: Rs. 80,000
Factory overhead: Rs. 60,000
Administrative overhead: Rs. 50,000
Selling overhead: Rs. 30,000
Following estimated cost were made for tender:
Direct material: Rs. 60,000
Direct wages: Rs. 40,000
Factory overhead based on direct wages and other overhead based on work cost. The company wants to earn 25% profit on sales.
Required:
Cost Sheet
Required:
Tender Sheet
Cost information for manufacturing a product is given below:
Direct material: 20,000 kgs @ Rs. 10 per kg
Direct labour cost: 80% of cost of material
Factory overhead: Rs. 64,000
Administrative overhead: Rs. 42,400
The following estimations were made for submitting a tender:
Estimated cost of materials: Rs. 30,000
Direct labour: Rs. 24,000
Factory overheads are absorbed on the basis of direct labour
Administrative overheads are absorbed on the basis of factory cost
A profit of 20% on selling price is estimated
Required:
Prepare:
Statement of Cost
Tender Sheet
Define process costing.
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Past Question Analysis
Historical exam-pattern data from past NEB question papers — not a prediction of future questions.
2
Question Items
1
Total Marks
2
Papers Appeared In
| Year | Question Items | Marks |
|---|---|---|
| 2082 | 1 | — |
| 2080 | 1 | 1 |
Also appears in 2 model questions (not counted above — model sets aren't actual NEB exam history).
This page covers Unit or Production Cost Determination, chapter 12 of 15 in the Class 12 Accounting syllabus set by the National Examination Board (NEB). 6 important questions for this chapter are available, each with a full solution.
For subjects like this one, examiners tend to reuse similar question patterns year to year — comparing this chapter's important questions against recent old NEB papers is one of the more efficient ways to revise.