Prepare a Cost Sheet from the following information : | Particulars | Amount (₹) | | --- | --- | | Materials consumed | 1,20,000 | | Labour cost | 2,28,000 | | Works overheads | 100% of labour cost | | Office overheads | 25% of works cost | Number of units produced and sold 200. Also determine the selling price per unit if the profit is 20% on sales.

> > [!TLDR] > Total cost ₹7,20,000 (₹3,600/unit); profit is 20% on sales, so selling price = ₹4,500 per unit. > > This CHSE Odisha +2 Cost Accounting problem requires a **cost sheet** and then a selling price where **profit is 20% on sales**. > > **Cost Sheet (for 200 units)** > > | Particulars | Working | Amount (₹) | > | --- | --- | --- | > | Materials consumed | — | 1,20,000 | > | Labour cost | — | 2,28,000 | > | **Prime cost** | 1,20,000 + 2,28,000 | **3,48,000** | > | Add: Works overheads | 100% of labour = 100% × 2,28,000 | 2,28,000 | > | **Works (factory) cost** | 3,48,000 + 2,28,000 | **5,76,000** | > | Add: Office overheads | 25% of works cost = 25% × 5,76,000 | 1,44,000 | > | **Cost of production / Total cost** | 5,76,000 + 1,44,000 | **7,20,000** | > > Cost per unit = 7,20,000 ÷ 200 = **₹3,600**. > > **Selling price (profit = 20% on sales)** > > When profit is a % of sales, cost = (100% − 20%) = 80% of sales. > > | Step | Working | Amount (₹) | > | --- | --- | --- | …

Prepare a Cost Sheet from the following informatio – Class 12 Cost Accounting

Question 58 of 85

Prepare a Cost Sheet from the following information :

Particulars	Amount (₹)
Materials consumed	1,20,000
Labour cost	2,28,000
Works overheads	100% of labour cost
Office overheads	25% of works cost

Number of units produced and sold 200.

Also determine the selling price per unit if the profit is 20% on sales.

ChseodishaCHSE Odisha Plus Two (Class 12) Commerce Board 2022Subjective· 5mImportance★★★★★est

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Total cost ₹7,20,000 (₹3,600/unit); profit is 20% on sales, so selling price = ₹4,500 per unit.

This CHSE Odisha +2 Cost Accounting problem requires a cost sheet and then a selling price where profit is 20% on sales.

Cost Sheet (for 200 units)

Particulars	Working	Amount (₹)
Materials consumed	—	1,20,000
Labour cost	—	2,28,000
Prime cost	1,20,000 + 2,28,000	3,48,000
Add: Works overheads	100% of labour = 100% × 2,28,000	2,28,000
Works (factory) cost	3,48,000 + 2,28,000	5,76,000
Add: Office overheads	25% of works cost = 25% × 5,76,000	1,44,000
Cost of production / Total cost	5,76,000 + 1,44,000	7,20,000

Cost per unit = 7,20,000 ÷ 200 = ₹3,600.

Selling price (profit = 20% on sales)

When profit is a % of sales, cost = (100% − 20%) = 80% of sales.

| Step | Working | Amount (₹) |

| --- | --- | --- | …

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Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

CBSE 2024Set ANNUAL1 mark
$Q. Rectify the underlined portions of the following sentences :$
(vii) Prime cost plus factory overhead is total cost. (underlined : total)
›Reveal solutionSolution
Correct word: Prime cost + factory overhead = WORKS cost (not total cost).

The cost sheet build-up is:

Prime cost + Factory/Works overhead = Works (Factory) cost

Works cost + Office & Administration overhead = Cost of production

Cost of production + Selling & Distribution overhead = Total cost (cost of sales) …
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CBSE 2022Set ANNUAL1 markMCQ
$Q. Cost of production is equal to :$
(a) Prime cost plus factory overheads
(b) Factory cost plus administration overheads
(c) Direct material plus direct expenses
(d) Total cost plus profit
›Reveal solutionSolution

Cost of production = Works (factory) cost + Office/Administration overheads — option (b).

The cost-sheet ladder in +2 Class-12 Cost Accounting (CHSE Odisha, NCERT/CBSE-aligned) is:

Stage Build-up
Prime cost Direct material + Direct wages + Direct expenses
Works / Factory cost Prime cost + Factory (works) overheads
Cost of production Works cost + Office/Administration overheads

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CBSE 2022Set ANNUAL1 markMCQ
$Q. Aggregate of direct material, direct wages and direct expenses is known as :$
(a) Factory cost
(b) Cost of production
(c) Total cost
(d) Prime cost
›Reveal solutionSolution

Direct material + Direct wages + Direct expenses = Prime cost — option (d).

In +2 Class-12 Cost Accounting (CHSE Odisha), prime cost is the aggregate of all direct costs:

Element
Direct material xxx
Direct wages xxx
Direct expenses xxx

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CBSE 2022Set ANNUAL1 markMCQ
$Q. Cost of sale is the sum total of :$
(a) Cost of production plus selling and distribution overheads
(b) Prime cost plus factory overheads
(c) Cost of production plus selling and distribution overheads plus % of profit
(d) Total cost minus profit
›Reveal solutionSolution

Cost of sales = Cost of production + Selling & Distribution overheads — option (a).

In the cost-sheet build-up (CHSE Odisha +2 Cost Accounting):

Stage Build-up
Cost of production Works cost + Office/Administration overheads
Cost of sales (total cost) Cost of production + Selling & Distribution overheads
Sales Cost of sales + Profit
…

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CBSE 2019Set ANNUAL1 mark
$Q. Correct the underlined portion of the following sentence: Cost of production + selling and distribution overhead = Factory cost. (underlined portion: "Factory cost")$
›Reveal solutionSolution

The underlined "Factory cost" is wrong — adding selling and distribution overhead to cost of production gives Total Cost (Cost of Sales), the last line of the cost sheet.

The cost sheet builds up in a fixed sequence (a core idea in the CHSE Odisha +2 Class-12 Cost Accounting syllabus):

Stage Build-up
Prime cost Direct material + Direct labour + Direct expenses
Factory / Works cost Prime cost + Factory (works) overhead
Cost of production Factory cost + Office & administration overhead

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Stage	Build-up
Prime cost	Direct material + Direct wages + Direct expenses
Works / Factory cost	Prime cost + Factory (works) overheads
Cost of production	Works cost + Office/Administration overheads

Element
Direct material	xxx
Direct wages	xxx
Direct expenses	xxx

Stage	Build-up
Cost of production	Works cost + Office/Administration overheads
Cost of sales (total cost)	Cost of production + Selling & Distribution overheads
Sales	Cost of sales + Profit
…

Stage	Build-up
Prime cost	Direct material + Direct labour + Direct expenses
Factory / Works cost	Prime cost + Factory (works) overhead
Cost of production	Factory cost + Office & administration overhead

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