Cost Project Moushmi

8/4/2019 Cost Project Moushmi

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COST AND MANAGEMENT ACCOUNTING

PROJECT

NAME: MOUSHUMI MUKHERJEE

ROLL NO: 029

SECTION: ST - 5

PROJECT TOPIC

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Select any joint stock company (BSE 30 Company preferred)

Give a brief profile of the company.

Copy final account of any recent year from website (p&l,

balance sheet).

Discuss format, utility, limitation of Historical cost sheet.

From copied final account prepare cost sheet of the

company.

Make necessary assumption.

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CONTENTS

1. Brief profile of the company.

2. Final account of recent year of the company.

3. Format of Historical cost sheet.

4. Utility of Historical cost sheet.

5. Limitation of Historical cost sheet.

6. Cost sheet of the company.

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Company Profile

Hindustan Unilever Limited (HUL) (BSE: 500696) is India's largest fastmoving consumer goodscompany owned by the European

company Unilever. The Anglo-Dutch company Unileverowns a 52%

majority stake.

HUL was formed in 1933 as Lever Brothers India Limited and came into

being in 1956 as Hindustan Lever Limited through a merger ofLever

Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is

headquartered in Mumbai, India and has employee strength of over 15,000

employees and contributes to indirect employment of over 52,000 people.The company was renamed in June 2007 as Hindustan Unilever Limited.

Hindustan Unilever's distribution covers over 1 million retail outlets across

India directly and its products are available in over 6.3 million outlets in the

country, nearly 80% of all retail outlets in India. The company claims that

two out of three Indians use its many home and personal care products,

food and beverages.

HUL is the market leader in Indian consumer products with presence in

over 20 consumer categories such as soaps, tea, detergents andshampoos amongst others with over 700 million Indian consumers using its

products. Sixteen of HULs brands featured in the ACNielsen Brand Equity

list of 100 Most Trusted Brands Annual Survey (2008). According to Brand

Equity, HUL has the largest number of brands in the Most Trusted Brands

List. It has consistently had the largest number of brands in the Top 50, and

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http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500696http://en.wikipedia.org/wiki/Fast_moving_consumer_goodshttp://en.wikipedia.org/wiki/Fast_moving_consumer_goodshttp://en.wikipedia.org/wiki/Unileverhttp://en.wikipedia.org/wiki/Anglohttp://en.wikipedia.org/wiki/Netherlandshttp://en.wikipedia.org/wiki/Unileverhttp://en.wikipedia.org/wiki/Lever_Brothershttp://en.wikipedia.org/wiki/Lever_Brothershttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/ACNielsenhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500696http://en.wikipedia.org/wiki/Fast_moving_consumer_goodshttp://en.wikipedia.org/wiki/Fast_moving_consumer_goodshttp://en.wikipedia.org/wiki/Unileverhttp://en.wikipedia.org/wiki/Anglohttp://en.wikipedia.org/wiki/Netherlandshttp://en.wikipedia.org/wiki/Unileverhttp://en.wikipedia.org/wiki/Lever_Brothershttp://en.wikipedia.org/wiki/Lever_Brothershttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/ACNielsen


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Selling and Admin Expenses 4,366.30 3,737.52

Miscellaneous Expenses 672.61 656.57

Preoperative Exp Capitalized 0.00 0.00

Total Expenses 17,320.50 14,990.89

Mar '11 Mar '10

12 mths 12 mths

Operating Profit 2,664.49 2,797.70

PBDIT 3,103.97 2,997.43

Interest 0.24 6.98

PBDT 3,103.73 2,990.45

Depreciation 220.83 184.03

Other Written Off 0.00 0.00

Profit Before Tax 2,882.90 2,806.42

Extra-ordinary items -3.06 43.97

PBT (Post Extra-ord Items) 2,879.84 2,850.39

Tax 573.87 648.36

Reported Net Profit 2,305.97 2,202.03

Total Value Addition 6,826.17 5,986.92

Preference Dividend 0.00 0.00

Equity Dividend 1,410.60 1,417.94

Corporate Dividend Tax 231.36 238.03

Per share data (annualised)

Shares in issue (lakhs) 21,594.72 21,816.87

Earning Per Share (Rs) 10.68 10.09

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Equity Dividend (%) 650.00 650.00

Book Value (Rs) 12.19 11.84

Balance sheet of Hindustan Unilever Limited

Mar ' 11 Mar'10

Equity share capital 215.95 218.17

Share application money - -

Preference share capital - -

Reserves & surplus 2,417.30 2,364.68

Secured loans - -

Unsecured loans - -

Total 2,633.25 2,582.85

Gross block 3,759.62 3,581.96

Less : revaluation reserve 0.67 0.67

Less : accumulated depreciation 1,590.46 1,419.85

Net block 2,168.49 2,161.44

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Mar ' 11 Mar'10

Capital work-in-progress 299.08 273.96

Investments 1,260.68 1,264.08

Current assets, loans & advances 6,494.19 5,818.89

Less : current liabilities & provisions 7,589.19 6,935.52

Total net current assets -1,095.00 -1,116.63

Miscellaneous expenses not written - -

Total 2,633.25 2,582.85

Book value of unquoted investments 108.93 466.46

Market value of quoted investments 1,279.49 953.58

Contingent liabilities 663.00 468.49

Number of equity sharesoutstanding

(Lacs) 21594.72 21816.87

.

COST SHEET FORMAT

Particulars Amoun

t

Amoun

t

Opening Stock of Raw Material

Add: Purchase of Raw materials

Add: Purchase Expenses

Less: Closing stock of Raw Materials

Raw Materials Consumed

Direct Wages (Labour)

Direct Charges

***

***

***

***

***

***

***

Prime cost (1) ***

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Add :- Factory Over Heads:

Factory Rent

Factory Power

Indirect Material

Indirect Wages

Supervisor Salary

Drawing Office Salary

Factory Insurance

Factory Asset Depreciation

***

***

***

***

***

***

***

***

Works cost Incurred ***Add: Opening Stock of WIP

Less: Closing Stock of WIP

***

***

Works cost (2) ***

Add:- Administration Over Heads:-

Office Rent

Asset Depreciation

General Charges

Audit Fees

Bank Charges

Counting house Salary

Other Office Expenses

***

***

***

***

***

***

***

Cost of Production (3) ***

Add: Opening stock of Finished Goods

Less: Closing stock of Finished Goods

***

***

Cost of Goods Sold ***

Add:- Selling and Distribution OH:-

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Sales man Commission

Sales man salary

Traveling Expenses

Advertisement

Delivery man expenses

Sales Tax

Bad Debts

***

***

***

***

***

***

***

Cost of Sales (5) ***

Profit (balancing figure) ***

Sales ***

Notes:-

1) Factory Over Heads are recovered as a percentage of direct wages

2) Administration Over Heads, Selling and Distribution Overheads are recovered as

a percentage of works cost.

Advantages and disadvantages of historical cost sheet

Advantages

Historical cost sheet are straightforward to produce

Historical cost sheet do not record gains until they are realized

Historical cost sheet are still used in most accounting systems

Disadvantages

Historical cost sheet give no indication of current values of the

assets of a business

Historical cost sheet do not record the opportunity costs of the use

of older assets, particularly property which may be recorded at a

value based on costs incurred many years ago

Historical cost sheet do not measure the loss of value of monetary

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assets as a result of inflation.

COST SHEET OFHINDUSTAN UNILEVER LIMITED FORTHE YEAR 2011

PARTICULARS AMOUNT (RS.) AMOUNT (RS.)

Opening Stock of RawMaterial

Add: Purchase of Rawmaterials

Less: Closing stock of RawMaterials

Raw Materials

9,003.97

*************

10,494.33

- 1,490.36

551.25

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Consumed

Add : Other ManufacturingExpenses

Prime cost (1) -939.11Add :- Factory OverHeads:

Power & Fuel Cost

Employee Cost

Depreciation

274.74

961.27

220.83

Works cost Incurred (2) 1456.84

Add:- AdministrationOver Heads:-

Miscellaneous Expenses 672.61

Cost of Production (3) 672.61

Add:- Selling andDistribution OH:-

Selling and Admin Expenses 4,366.30

Cost of Sales (4) 4,366.30

Profit (balancingfigure)

15,042.05

Sales 20,598.89

Assumptions:

1. The miscellaneous expenses come under administration

overhead.2. The selling and admin expenses come under selling and

distribution overhead.

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Documents

Cost Project Moushmi