COST SHEET- Tender and Quotation unit 2.pdf
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TENDER AND QUOTATION COST SHEET FOR PRICE QUOTATION
![78. Acompany has received an enquiry for the supply of 10,000 steei
folding chairs. The costs are estimated as follows :
Raw materials
Direct wages
. Variable overheads
Fixed overheads
1,00,000 kg. at Re. lper kg
10,000 hours at Rs. 4 per hour
Factory Rs. 2.40 per labour hour
Selling &distribution Rs. 16,000
Factory Rs. 6,000
Selling & distribution Rs. 14,000
Prepare a statement showing the price to be fixed, which will result
inaprofit of20% on the selling price.
[C.A.,Inter]
[Ans :Total cost: Rs. 2,00,000 (i.e., 1,00,000 + 40,000 + 30,000(FC: 6,000 +
VC:24,000) + 30,000 (FC:14,000 + VC:16,000); Profit : Rs. 50,000;
Price to be fixed : Rs. 2,50,000]](https://image.slidesharecdn.com/tenderandquotationunit2-250807084802-52794605/85/COST-SHEET-Tender-and-Quotation-unit-2-pdf-16-320.jpg)
COST SHEET- Tender and Quotation unit 2.pdf
- 1. (F) Cost Sheet- Tenders and Quotations Illustration 15 The accounts of a machine mar disclosethefollowing information for sixmonths ending 3Ist December 2019. Materials used Solution : Direct wages Factory overheads Administrative expenses Particulars Materials used Direct wages manufacturing company Preparecost sheet for thehalfyearand calculate the price which the company should quote for the manufacture of amachine requiring materials valued at Rs.1,250 and expenditure in productive wages Rs. 750, so that the price might yieldaprofit of 20%on theselling price. (MadrasB.Com (G& AF) Nov. 2012) (Bharathiyar B.ComNov. 2012)[Madras, B.Com. April1983| Prime cost For Six months ending 31-12-2019 Add: Factory overheads Works cost Add: Administrative overheads Statement of Cost Rs. Cost of production 1,50,000 1,20,000 30.000 15,000 Rs. 1,50,000 1,20,000 2,70,000 30,000 3,00,000 15,000 3,15,000
- 2. Cost Shect, Tenders and Quotations Add: Add: Particulars Materials Wages Prime cost Works overheads 25% ofwages - 31,200 x- Works cost Tender for Large Plant Officeand generaloverheads Total cost 25 100 S% of works cost - 91,000 x 5 100 Profit, at 20% on selling price (or) 25% on cost =95,550 x Tender price ofplant 25 100 2.41 Rs 52,000 31.200 83.200 7.800 91,000 4.550 95.550 23,888 1,19,438 Note: Since,sellinganddistributionoverheadsare notseparatelygiven, officeand general overheads are taken as the total ofall the overheads except works overhead. So. the total afteradding the office and general overheads is Total cost". (G) CostSheet-With Hidden Information
- 3. Jllustration18 Cm the following particularsyouarerequired to prepare astatement showing (a)the cost of materials consumed (b)the prime cost (c) the works cost (d)the lotal|Cost(e) the percentage of works overhead to productive wages and (t)the general overhead to works cost. percentageof Stockoffinished goods on 1-1-2016 Stock ofrawmaterials on 1-1-2016 Purchases ofraw materials Productive wages Sales of finished goods Stock of finishedgoods on 31-12-2016 Stock ofraw materialson 31-12-2016 Works overhead charges Office and general expenses Rs. 72,800 33,280 7,59,200 5,16,880 15,39,200 78,000 35,360 1.29,220 70,161 Thecompany is about to send a tender for a large plant. The costing department has estimated that the materials required would cost Rs. 52,000 and
- 4. 240 to be made at anet profitof20% ontheselling price. Show what. the amOunt or ne wagesto workmen for makingtheplant wouldcost Rs. 31,200. The tender i tender would be, if it is basedontheabove p e r c e n t a g e s . Solution: Add. Particulars Statement showipg Costand Profit fortheyear ended 3istDec. 2016 Openingstockofraw materials Purchase ofraw materials Less: Closing stock of raw materials (a) Costofmaterialsconsumed Productivewages (b) Prime cost Works overheads (c) Works cost Officeand generalexpenses (d) Total cost Add: Opening stock offinished goods Less: Closing stock of finished goods Cost of goods sold [Madras B. Com (G&AF) April 2011| Madras, B.Com(1CE) May 2000 (Old; Madras, ,BLA. B CorP., Sep. 1988| Profit (Bal. fig.) Sales (e) Percentage of works overhead to productive wages = () Percentage ofgeneral overhead to works cost = Cost AccOunn Rs. 33,280 7,59,200 70,161 14,03,220 7,92,480 1,29,220 516,880 35,360 -x100= 5°% Rs. 7,57,120 S,16,880 12,74,000 1,29,220 14,03,220 70,161 14,73,381 x00 =25% 72,800 15,46,181 78,000 14,68,181 71,019 1s,39,200
- 5. 12. The accounts of amachine manufacturing company disclose the following information for the six months ending 31-12-2013. Materials Direct wages Rs. 1,50,000 1,20,000
- 6. Fztoryoverhzads Offceovechieads laj) Prepareaos:shetofthtemachine. 24.00 prce. I1,640 (o) Caculate the price whichtàe compaty should quote for the manutactureofamachinerequiring malerialsRs. 125oand 1.250 Furthepurpose ofprice quolation, charge laciory overheads 2s1 percenlage ofdirect wages and othce overheads as apercentace nf Works Cosl.
- 7. ChatPalans age*Bege cost Adl:ofe Castel Bolun wokast Gharukars Mateuh e o/4 to aerk Gast =1764O ol4 6Y. of wc Cosat Procution toof cale !. 20,0o0 2,#o.oOD 2279X20 I,e0.oO0 kmtle) 2279 2e19o0.
- 8. 71. The accounts of ABCCo. Ltd. show the following: Materials used Direct labour Works overheads Establishment overheads Rs. 7,00,000 5,40,000 1,62,000 1,12,160 Whatprice should tlhe company quote to manufacture amachine which will require an expenditure of Rs. 1,000 in materials and Rs. 800 En wages so that it willyield aprofit of 20% onselling price? Make ecessary assumptionsregarding percentages.
- 9. Labown (siakenat *BBne lat Add: lok owanhaads Add: EstablRhatoverheod &igknst ahou Pasdlas Matefas Lwage) Clabou) Add: Work oft l3o/ lot L4.o2.00 Psice to Þe ue 7.00.0oD 12,40.000 L62,000 S40.000 l4.02.000 Duahed Amtle 4000 2040 63.20 2,203.20
- 10. 66. From the following data, prepare acost statement of Stove Co., for the year 2012. Stock of materials on 1.1.2012 Stock of materials on 31:12.2012 Purchase of materials Wages Rs. 35,000 4,900 52,500 95,000
- 11. CTO-84 Factory expenses Establishment expenses Completed stock in hand on 1.1.2012 Completed stock in hand on 31.12.2012 Sales CosT AcCOUNTING 17,500 10,000 Nil 35,000 1,89,000 The number of stoves manufactured during the year 2012 was 4,00. The company wants to quote for a contract for the supply of 1,000 stoves during the year 2013.The stove to be quoted are of uniform quality and make and are similar to those manufactured in the previous year but cost of materials has increased by 15% and cost of wages by 10%. Prepare a statement showing the price to be quoted to give the same percentage of net profit on turnover as was realised during the year 2012, assuming that the cost per unit of overhead charges will t same as in the previous year.
- 12. Cet hast estove l lonteVesn 2d1s Chandeasla Raw mateual spenyato ok Lasi cleingSfock Cest Add: ags kddi lest akeuisl ouund 3s000 DRect Matotls Dset Wagos g2.60 I.6o0 |,600 L.9S.100 I2400. Ast 23750 26l30 44.88O 9Ldenastfahaup, PRe Quoted. s4, 23 2D0 Perlntt 6306.L 62051.! 20.6J 23.73. 2.50 S1. 28 S-69 S6.44 Pen t 23.75 26,13 44-82 4.37 Sh.26 2.50 S6.76
- 13. CoSt:3 % 76. Costing records of acompany show the following: Materials Rs.5,00,000 Wages Rs.4,00,000 Works overheads Rs.1,00,000 Office overheads Rs.2,00,000 A quotation is to be prepared for the supply of 100 units of product. Estimated cost of materials and wáge per unit are Rs.250 and Rs.200 respectively. Required profit on quotation is 20%. Ascertain the quotation for 100 units of product.
- 14. l68 Wonks o/ A.00.000 DB.etaeis 250loo = 25 oo0 age 200 (0 2r. or eges 20.000 20 Y. ntoO0o Matetl Shast (2t.onocog Qustaton 9.00.0 lo.o0.O00 2,00,coa l2,00..o0
- 16. 78. Acompany has received an enquiry for the supply of 10,000 steei folding chairs. The costs are estimated as follows : Raw materials Direct wages . Variable overheads Fixed overheads 1,00,000 kg. at Re. lper kg 10,000 hours at Rs. 4 per hour Factory Rs. 2.40 per labour hour Selling &distribution Rs. 16,000 Factory Rs. 6,000 Selling & distribution Rs. 14,000 Prepare a statement showing the price to be fixed, which will result inaprofit of20% on the selling price. [C.A.,Inter] [Ans :Total cost: Rs. 2,00,000 (i.e., 1,00,000 + 40,000 + 30,000(FC: 6,000 + VC:24,000) + 30,000 (FC:14,000 + VC:16,000); Profit : Rs. 50,000; Price to be fixed : Rs. 2,50,000]
- 17. DBest lart hateyo/ YarfaBk 4.0006Oo owerk lat cost elaa 1. 00.060 ho.ooo I.4o.000 -30oo L7O.O00. 30.000 2.00.
- 18. CTQ32 II. Tenders and Quotations (A). To Determine Tender Price on the Basis of Per Unit Cost Mustration 15 (When there is no change in cost components and Thefollowing figuresrelate to thecosting of a T a r p a u l i n m a n u f a c t u r e d in respect of acertaintype of a sheet for a period ofthree months: percentage ofprofit) Stock ofmaterials (1-1-2013) Stock of materials (31-3-2013) Productivewages Materials purchased Sales Indirect expenses Completed stock (1-1-2013) Completed stock (31-3-2013) Solution Particulars The numberofsheets manufactured during three months was 4,400 and the price is to be quoted for 1,296 sheets in order to realise the sane percentage of profit as for the period under review, assurming no alteration inrates ofwages and cost of materials. Opening stock of materials Prepare astatement of costfor themanufacture of4,400sheets and quotation for 1,296 sheets. Add : Purchase of materials Less : Closing stock of materials Statement of cost and profit for the three months ending 31-3-2013 (Output:4,400 sheets Cost of materials consumed Add : Productive wages Prime cost Rs. 11,000 7,000 Add : Indirect expenses 1 , 6 6 , 0 0 0 1,23,000 Cost of production 2,87,100 26,000 NIL 58,000 Total Rs. 11,000 1,23,000 1,34,000 7,000 1,27,000 1,66,000 2,93,000 26,000 3,19,000 Per sheet Rs. P. 28.86 37.73 66.59 5.91 72.50
- 19. Cost SHEET, IENDERS AN) QUOTATKONS Less : Closing stock of finished goods (58,000/ 72.50 = 800sheets) Notes Cost of production of goods sold Profit (Bal.fig.) Sales (4,400 - 800 = 3,600) (i) Profit percentage : On sales: (or) On cost: ) Indirect expenses are assumed to include all overheads. 26,100 2,87,100 26,100 2,61,000 X100 = 10% x100= 9.09% Particulars Materials (1,27,000 /4,400 X 1,296) Productive wages(1,66,000/4,400 ×1,296) Prime cost Statement showing quotation for 1,296sheets Add : Indirect expenses(26,000/4,400 x 1,296) Costof production (or) Cost of sales 58,000 2,61,000 Add: Profit at 9.09% on sales or 10% on cost Selling price 26,100 2,87,100 Stock of materials (opening) Stock of materials (31-5-2013) Total Rs. 37,407 48,895 86,302 7,658 93,960 9,396 1,03,356 CTO-33 72.50 Rs. 7.25 1,00,000 14,000 79.75 Per unit Rs. P. 28.86 37.73 66.59 5.91 72.50 Note Profitiscalculatedatthesamepercentageasinthepreviousperiodasper instruction. 7.25 lustration 16 (When there is aprobability to have change in costs but there is no change in profitpercentage) 79.75 On June 30, 2013,a perambulator manufacturer desired to quote for a contract for the supply of 5,000 perambulators. From the following data, prepare a statement showing the price to be quoted to give the same Percentage of profiton turnover as was realised during six months to 3lst May 2013.
- 20. Purchase of materials (6 months) Direct wages Overheads Add : Sales Solution Completed stock in hand (opening) The number of perambulatorsmanufactured during the six month was 6,000 including those sold and those in stock at the close ofthe period The peranmbulators to be quoted are ofuniform size and quality and similar to those manufactured during the previous six months. As from 31-5-2013 the cost of direct labour is increased by 20%. Less : Add: Add: (i) Completedstock in hand (31-5-2013) (ii) Statement of cost and profit for six months ending 31st May 2013 Opening stock of materials Purchase of materials Closing stock of materials Cost of materials consumed Direct wages Overheads Particulars Working Notes Prime cost Less : Closing stock of finished goods Cost of production Cost of production of goods sold Profit Sales Profit percentage on sales : Direct wage per unit Add: 20% increase [Madras, M.Com., Sept. 1987 Directwage per unit for quotation 54,000 5,40,000 1,50,000 3,00,000 50,000 5,40,000 Nil 1,00,000 50.00 (Output: 6,000 units) 10.00 60.00 Total Rs. 1,00,000 1,50,000 2,50,000 14,000 2,36,000 3,00,000 5,36,000 50,000 5,86,000 1,00,000 4,86,000 x 100= 10% 54,000 5,40,000 Per unit Rs. P. 39.33 50.00 89.33 8.33 97.66 16.66 81.00 9.00 90.00
- 21. CosT SHEET, TENDERS AND QUOTATIONS (i) Materials of overheadson direct wages : 50,000 /3,00,000 X 100 = 16.67% Statement showing quotation for 5,000 perambulators Direct wages Add : 20% increase 16.67%) 2,36,000 Particulars Prime cost 6,000 Add : Profit Add : Overheads (3,00,000 x Cost of production 3,00, 000 6,000 X 5,46,667 90% Selling price x 10% x5,000'= 2,50,000 percentage of wages. 50,000 Total Rs. CTO-35 1,96,667 Per unit Rs. P. 39.33 3,00,000 60.00 4,96,667 99.33 50,000 10.00 5,46,667|109.33 60,741 12.15 6,07,408 121.48 Note Inthe absence of specific instruction, overheads are taken as a in cost elements
- 22. CTQ-38 (B). Estimation ofTender Price on the Basis of Overhead Percento. Ilustration 18 The accounts of Pleasant Company Ltd., show the following detaile the year 2013: Materials Labour Factory overheads Administration overheads (a) Prepare acost sheet, and Add : It is estimated that Rs. 1,000 for materials and Rs. 700 6 labour will be required for one unit of the finished product for quotati purpose. Solution Add : Absorb factory overheads onthe basis oflabour and administrati overheads on the basis of works cost. Aprofit of 12.5% on selling pric is required on quotation. product. (b) Prepare astatement showing selling price per unit of the finishe Materials Labour Statement of cost for the year 2013 Particulars Prime cost Factory overheads Works cost Administrative overheads Cost of production Percentage of factory overheads to wages = Percentage of administrative CosT Acc0 overheads to works cost = 3,50,000 81,000 2,70,000 2,70,000 Rs. 56,080 7,01,000 81,000 [Madras, B.Com., Sept. 1991 56,080 X 100= 30% X100 = 8% Rs. 3,50,000 2,70,000 6,20,000 81,000 7,01,000 56,080 7,57,080
- 23. CoST SHEET, TENDERS AND QUOTATIONS Statement showing price to be quoted for a unit Materials Add : Labour Particulars Prime cost Add : Factory overheads (30% of wages = 700 × 30%) Works cost Add : Administrative overheads (8% of works cost = 1,910 × 8%) Cost of production Profit 12.5 % on sales (2,062.8O Selling price to be quoted 87.5 -X 12.5) CTQ-39 Rs. P. 1,000.00 700.00 1,700.00 210.00 1,910.00 152.80 2,062.80 294.69 2,357.49