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Chapter 13

Cost sheet

NEB Class 12 past exam questions

Past questions and answers

8 questions set from this chapter, 1 of them more than once. Most repeated first.

  • Asked 2 times
  • 2083 Baishakh · 8 marks
  • 2079 Jestha · 8 marks

ABC Manufacturing Company provides the following cost information:
Raw material purchases — Rs. 3,60,000 Productive labour — Rs. 2,00,000 Factory expenses — 50% of productive labour Depreciation on furniture — Rs. 24,000 Salaries of salesmen — Rs. 15,000 Freight on purchases — Rs. 20,000 Direct expenses — Rs. 1,50,000 Office rent — Rs. 18,000 Selling and distribution overheads — Rs. 10,000 Expected profit — 15% on cost
ItemBeginning (Rs.)Ending (Rs.)
Raw material35,00040,000
Work-in-progress60,00038,000
Finished goods80,00050,000
Required: Prepare a cost sheet showing: (a) Cost of raw material consumed (b) Prime cost (c) Factory cost (d) Cost of production (e) Cost of goods sold (f) Cost of sales (g) Profit amount (h) Total sales amount

Answer

Cost Sheet of ABC Manufacturing Company

ParticularsRsRs
Opening raw material35,000
Add: Raw material purchases3,60,000
Add: Freight on purchases20,000
Less: Closing raw material(40,000)
Raw material consumed3,75,000
Add: Productive labour2,00,000
Add: Direct expenses1,50,000
Prime cost7,25,000
Add: Factory expenses (50% of Rs 2,00,000)1,00,000
Add: Opening work-in-progress60,000
Less: Closing work-in-progress(38,000)
Factory cost8,47,000
Add: Office rent18,000
Add: Depreciation on furniture24,00042,000
Cost of production8,89,000
Add: Opening finished goods80,000
Less: Closing finished goods(50,000)
Cost of goods sold9,19,000
Add: Salaries of salesmen15,000
Add: Selling and distribution overheads10,00025,000
Cost of sales9,44,000
Add: Profit (15% of 9,44,000)1,41,600
Total sales10,85,600

Results

  • (a) Raw material consumed = Rs 3,75,000
  • (b) Prime cost = Rs 7,25,000
  • (c) Factory cost = Rs 8,47,000
  • (d) Cost of production = Rs 8,89,000
  • (e) Cost of goods sold = Rs 9,19,000
  • (f) Cost of sales = Rs 9,44,000
  • (g) Profit = Rs 1,41,600
  • (h) Total sales = Rs 10,85,600

Depreciation on furniture is treated as an office (administration) overhead.

Answer checked by Claude Sonnet · Oct 21, 2026

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  • 2082 Baishakh · 8 marks

A factory provides the following information:
ItemsRs.
Material purchase4,00,000
Carriage on purchase20,000
Direct wages2,00,000
Chargeable expenses80,000
Custom duty10,000
Indirect material20,000
Factory rent40,000
Depreciation on factory machinery20,000
Depreciation on office furniture30,000
Depreciation Delivery van10,000
Carriage outward15,000
Legal fee25,000
Audit fee18,000
Stock of goods
ItemOpening (Rs.)Closing (Rs.)
Material40,00060,000
Semi-finished goods80,00020,000
Finished goods1,00,00070,000
Profit policy: 20% on cost
Required:
Prepare Cost Sheet.

Answer

Cost Sheet

ParticularsRsRs
Opening material40,000
Add: Material purchase4,00,000
Add: Carriage on purchase20,000
Add: Custom duty10,000
Less: Closing material(60,000)
Direct material consumed4,10,000
Add: Direct wages2,00,000
Add: Chargeable expenses80,000
Prime cost6,90,000
Add: Indirect material20,000
Add: Factory rent40,000
Add: Depreciation on factory machinery20,00080,000
Add: Opening semi-finished goods80,000
Less: Closing semi-finished goods(20,000)
Factory cost8,30,000
Add: Depreciation on office furniture30,000
Add: Legal fee25,000
Add: Audit fee18,00073,000
Cost of production9,03,000
Add: Opening finished goods1,00,000
Less: Closing finished goods(70,000)
Cost of goods sold9,33,000
Add: Carriage outward15,000
Add: Depreciation on delivery van10,00025,000
Cost of sales9,58,000
Add: Profit (20% of cost)1,91,600
Sales11,49,600

Answer checked by Claude Sonnet · Oct 21, 2026

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  • 2082 Supplementary · 8 marks

Production related cost information of a factory are provided as:
Direct materials — Rs. 1,50,000 Direct wages — Rs. 1,20,000 Indirect materials — Rs. 40,000 Employee salary: Factory — Rs. 15,000 Office — Rs. 16,000 Sales place — Rs. 14,000 Carriage: Inward — Rs. 17,000 Outward — Rs. 13,000 Stock position:
ParticularsOpening (Rs.)Closing (Rs.)
Raw material20,00025,000
Semi finished40,00018,000
Finished goods60,0001,00,000
Profit 20% on sales.
Required: Cost sheet

Answer

Cost Sheet

ParticularsRsRs
Opening raw material20,000
Add: Direct materials purchased1,50,000
Add: Carriage inward17,000
Less: Closing raw material(25,000)
Direct material consumed1,62,000
Add: Direct wages1,20,000
Prime cost2,82,000
Add: Indirect materials40,000
Add: Factory salary15,00055,000
Add: Opening semi-finished goods40,000
Less: Closing semi-finished goods(18,000)
Factory cost3,59,000
Add: Office salary16,000
Cost of production3,75,000
Add: Opening finished goods60,000
Less: Closing finished goods(1,00,000)
Cost of goods sold3,35,000
Add: Sales place salary14,000
Add: Carriage outward13,00027,000
Cost of sales3,62,000
Add: Profit (20% on sales = 25% on cost)90,500
Sales4,52,500

Profit: if sales = Rs 100, profit = Rs 20 and cost = Rs 80, so profit = 2080×3,62,000=Rs 90,500\frac{20}{80} \times 3{,}62{,}000 = \text{Rs } 90{,}500.

Answer checked by Claude Sonnet · Oct 21, 2026

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  • 2081 Baishakh · 8 marks

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
a. [4] Required: Cost Sheet of previous year
b. [4] Required: Tender price for next lot

Answer

(a) Cost sheet of the previous year

ParticularsRs
Direct materials1,80,000
Direct wages1,20,000
Prime cost3,00,000
Add: Factory overhead60,000
Factory cost3,60,000
Add: Office overhead36,000
Total cost3,96,000

Overhead rates

Factory overhead rate=60,0001,20,000×100=50% of direct wages\text{Factory overhead rate} = \frac{60{,}000}{1{,}20{,}000} \times 100 = 50\% \text{ of direct wages}

Office overhead rate=36,0003,60,000×100=10% of factory cost\text{Office overhead rate} = \frac{36{,}000}{3{,}60{,}000} \times 100 = 10\% \text{ of factory cost}

(b) Tender price for the next lot

ParticularsRs
Direct materials40,000
Direct wages30,000
Prime cost70,000
Add: Factory overhead (50% of 30,000)15,000
Factory cost85,000
Add: Office overhead (10% of 85,000)8,500
Total cost93,500
Add: Profit (20% on sales = 25% on cost)23,375
Tender price1,16,875

Answer checked by Claude Sonnet · Oct 21, 2026

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  • 2080 Baishakh · 8 marks

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.
a. [ 4 ] Required: Cost Sheet
b. [ 4 ] Required: Tender Sheet

Answer

(a) Cost sheet

ParticularsRs
Direct material1,00,000
Direct wages80,000
Prime cost1,80,000
Add: Factory overhead60,000
Work cost2,40,000
Add: Administrative overhead50,000
Cost of production2,90,000
Add: Selling overhead30,000
Total cost3,20,000
Add: Profit (25% on sales = 3313%33\frac{1}{3}\% on cost)1,06,667
Sales4,26,667

Rates: factory overhead = 60,000 ÷ 80,000 = 75% of direct wages; administrative overhead = 50,000 ÷ 2,40,000 = 20.83% of work cost; selling overhead = 30,000 ÷ 2,40,000 = 12.5% of work cost.

(b) Tender sheet

ParticularsRs
Direct material60,000
Direct wages40,000
Prime cost1,00,000
Add: Factory overhead (75% of 40,000)30,000
Work cost1,30,000
Add: Administrative overhead (20.83% of 1,30,000)27,083
Cost of production1,57,083
Add: Selling overhead (12.5% of 1,30,000)16,250
Total cost1,73,333
Add: Profit (25% on sales = 3313%33\frac{1}{3}\% on cost)57,778
Tender price2,31,111

Answer checked by Claude Sonnet · Oct 21, 2026

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  • 2079 Jestha · 8 marks

A manufacturing company showed the following details of its production cost for 2,000 units: Raw materials: Direct — Rs. 2,00,000 Indirect — Rs. 60,000 Wages: Direct — Rs. 1,50,000 Indirect — Rs. 20,000 Carriage inward — Rs. 25,000 Carriage outward — Rs. 10,000 Factory expenses — Rs. 30,000 Salaries — Rs. 40,000 Insurance — Rs. 10,000 Selling expenses — Rs. 5 per unit sold Profit — 25% of selling price
Stock details:
ParticularsOpening (Rs.)Closing (Rs.)
Raw materials50,00040,000
WIP40,00030,000
Finished goods500 units300 units
Required: Cost Sheet
Figure: Stock details table with Opening and Closing columns as shown.

Answer

Cost Sheet

Units produced: 2,000 units
Units sold: Opening finished goods 500 + produced 2,000 − closing finished goods 300 = 2,200 units

Statement of Cost and Profit

ParticularsAmount (Rs.)Amount (Rs.)
Direct materials consumed:
Opening raw materials50,000
Add: Purchases (direct raw materials)2,00,000
Add: Carriage inward25,000
Less: Closing raw materials(40,000)
Direct materials consumed2,35,000
Add: Direct wages1,50,000
PRIME COST3,85,000
Add: Factory overheads:
Indirect materials60,000
Indirect wages20,000
Factory expenses30,000
Insurance10,000
Total factory overheads1,20,000
Add: Opening WIP40,000
Less: Closing WIP(30,000)
Factory cost / Works cost5,15,000
Add: Administration overheads (Salaries)40,000
Cost of production5,55,000
Add: Opening finished goods (500 units × Rs. 277.50)1,38,750
Less: Closing finished goods (300 units × Rs. 277.50)(83,250)
Cost of goods sold (2,200 units)6,10,500
Add: Selling and distribution overheads:
Selling expenses (2,200 units × Rs. 5)11,000
Carriage outward10,000
Total selling and distribution overheads21,000
Cost of sales6,31,500
Add: Profit (25% of selling price = 33⅓% of cost)2,10,500
SALES8,42,000

Working Notes

1. Cost of production per unit =5,55,0002,000=Rs. 277.50 per unit= \frac{5,55,000}{2,000} = \text{Rs. } 277.50 \text{ per unit}

2. Profit Profit is 25% of selling price, so on cost it is: 25100−25=13=3313%\frac{25}{100-25} = \frac{1}{3} = 33\tfrac{1}{3}\% Profit=6,31,500×13=Rs. 2,10,500\text{Profit} = 6,31,500 \times \frac{1}{3} = \text{Rs. } 2,10,500

3. Sales =6,31,500+2,10,500=Rs. 8,42,000= 6,31,500 + 2,10,500 = \text{Rs. } 8,42,000

Answer checked by Claude Sonnet · Oct 21, 2026

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  • 2079 Model Set B · 3+5 marks

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:
  • The estimated cost of materials is Rs. 30,000
  • Direct labour Rs. 24,000
  • Factory overhead 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: A statement of cost and tender sheet.

Answer

Part 1: Statement of cost

Direct material = 20,000×10=20{,}000 \times 10 = Rs 2,00,000. Direct labour = 80%×2,00,000=80\% \times 2{,}00{,}000 = Rs 1,60,000.

ParticularsRs
Direct material (20,000 kg @ Rs 10)2,00,000
Direct labour (80% of material)1,60,000
Prime cost3,60,000
Add: Factory overhead64,000
Factory cost4,24,000
Add: Administrative overhead42,400
Total cost of production4,66,400

Part 2: Tender sheet

Rates from the cost statement:

Factory overhead rate=64,0001,60,000×100=40% of direct labour\text{Factory overhead rate} = \frac{64{,}000}{1{,}60{,}000} \times 100 = 40\% \text{ of direct labour}

Administrative overhead rate=42,4004,24,000×100=10% of factory cost\text{Administrative overhead rate} = \frac{42{,}400}{4{,}24{,}000} \times 100 = 10\% \text{ of factory cost}

ParticularsRs
Direct material30,000
Direct labour24,000
Prime cost54,000
Add: Factory overhead (40% of 24,000)9,600
Factory cost63,600
Add: Administrative overhead (10% of 63,600)6,360
Total cost69,960
Add: Profit (20% of selling price = 25% of cost)17,490
Tender price87,450

Check: profit of 20% on selling price means cost is 80% of price, so price = 69,960÷0.80=87,45069{,}960 \div 0.80 = 87{,}450, and 20%×87,450=17,49020\% \times 87{,}450 = 17{,}490.

Answer checked by Claude Sonnet · Oct 21, 2026

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  • NEB Class 12 2079 Accounting Model Question Set A · 8 marks

The opening and closing balance of inventories are as below:
OpeningClosing
Finished goodsRs. 40,000Rs. 45,000
Work-in-progressRs. 25,000Rs. 20,000
Raw materialsRs. 40,000Rs. 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 [8]

Answer

Cost Sheet

ParticularsRsRs
Opening raw materials40,000
Add: Purchase of raw materials3,50,000
Less: Closing raw materials(50,000)
Raw materials consumed3,40,000
Add: Direct labour4,20,000
Prime cost7,60,000
Add: Factory overhead (50% of direct labour)2,10,000
Add: Opening work-in-progress25,000
Less: Closing work-in-progress(20,000)
Factory cost9,75,000
Add: Administration overhead (15% of 9,75,000)1,46,250
Cost of production11,21,250
Add: Opening finished goods40,000
Less: Closing finished goods(45,000)
Cost of goods sold11,16,250
Add: Selling expenses (12% of 9,75,000)1,17,000
Cost of sales12,33,250
Add: Profit (25% on sales = 3313%33\frac{1}{3}\% on cost)4,11,083
Sales16,44,333

Profit: if sales = Rs 100, profit = Rs 25 and cost = Rs 75, so profit = 12,33,250×2575=Rs 4,11,08312{,}33{,}250 \times \frac{25}{75} = \text{Rs } 4{,}11{,}083 (rounded).

Answer checked by Claude Sonnet · Oct 21, 2026

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Questions from NEB Class 12 2083 Accounting (Board exam, Baishakh 2083), NEB Class 12 2082 Accounting (Board exam, Baishakh 2082), NEB Class 12 2082 Accounting Supplementary Set A (Grade-increment / supplementary exam, Set A), NEB Class 12 2081 Accounting (Board exam, Baishakh 2081), NEB Class 12 2080 Accounting (Board exam, Baishakh 2080), NEB Class 12 2079 Accounting (Board exam, Jestha 2079), NEB Class 12 2079 Accounting Model Question Set A (NEB model paper, Set A) and NEB Class 12 2079 (2023) Accounting 1041 Model Question Set B (NEB model question paper, Set B, 2079 (2023); Set A is already on the site as neb-model-2079). Answers are written for this site; check them against your class notes.

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