Chat with us, powered by LiveChat HARSHELECTRICALS_ANALYZINGCOSTINSEARCHOFPROFITStudentSpreadsheets.xlsx - STUDENT SOLUTION USA

TYPES OF COST CLASSIFICATIONS

VARIOUS TYPES OF COST CLASSIFICATIONS
Basis Cost Concept Example Managerial Application
Nature of Expenses
Functional Classification
Behavioural
Cost Inventory Basis
Cost Object or Traceability
Cost for Decision
Note: CEO = chief executive officer

HARSH ELECTRICALS COST CLASSIFI

EXHIBIT TN-2: HARSH ELECTRICALS COST CLASSIFICATIONS (IN ₹)
Traceability Behavioral Inventoriable
Cost Note Total Cost
Workshop Electricity
During the Season
Standard Coolers (During Production)
Baleno Coolers (During Production)
Maintenance (During Production)
Factory Lighting (During Production)
During Off-Season
Lighting and Maintenance
Total
Office Electricity
During the Season
Office Computer (During Production)
Office Lighting (During the Season)
During Off-Season
During Off-Season (1/8 based on space)
Total Check Figure: 16,500.00
Note: *During off production time, 1,000 unit of electricity per month are allocated to the office and factory, based on the space they occupy; 1 square foot = 0.09 square metres; ₹ = INR = Indian rupee; US$1 = ₹54.35 on April 1, 2013.

PRODUCT PROFITABILITY ANALYSIS

PRODUCT PROFITABILITY ANALYSIS UNDER THE CONVENTIONAL COST SYSTEM (IN ₹)
Particulars Regular Baleno Model
Direct Materials Consumed
Direct Materials Consumed
Direct Labour
Direct Expenses
Prime Cost
Manufacturing Overheads
Total Manufacturing Overheads
Production of Standard Model
Production of Baleno Model
Total Direct Labour Cost
Cost Driver Rate / Overhead Recovery Rate
Manufacturing Overheads
Product Cost
Revenue
Profit
Product Profitability (in %)
Note: ₹ = INR = Indian rupee; US$1 = ₹54.35 on April 1, 2013.
Check Figure 0.18 0.16

STATEMENT OF COST OF GOODS SOLD

HARSH ELECTRICALS STATEMENT OF COST OF GOODS SOLD (IN ₹)
Particulars Amount Amount
Direct Material (Consumed) 0.00
Prime Cost 0.00
Manufacturing Overhead:
0.00
Cost of Production 0.00
Cost of Goods Manufactured 0.00
Add Opening Inventory of Finished Goods
Less Closing Inventory of Finished Goods (60 Standard models @ ₹2,055.41 and 10 Baleno models @ ₹2,515.9)
Cost of Goods Sold Check Figure: 8,588,662.61
Note: ₹ = INR = Indian rupee; US$1 = ₹54.35 on April 1, 2013; WIP = work in progress

PROJECTED INCOME STATEMENT FOR

HARSH ELECTRICALS PROJECTED INCOME STATEMENT FOR CALENDAR YEAR 2014 (IN ₹)
Particulars Amount Amount Classification
Net Income/Profit before Tax
Less: Tax
Profit after Tax
Note: ₹ = INR = Indian rupee; US$1 = ₹54.35 on April 1, 2013; COGS = cost of goods sold; EBITDA = earnings before interest, taxes, depreciation, and amortization; EBIT = earnings before interest and taxes.
Check Figure: 1,202,464.90

COST-VOLUME-PROFIT ANALYSIS

EXHIBIT TN-7: CALCULATION OF HARSH ELECTRICALS COST-VOLUME-PROFIT ANALYSIS (IN ₹)
Particulars Standard Model Baleno Model Total
Variable Costs
Direct Materials Used
Direct Labour
Drilling Bits
Distribution
Electricity
Procurement Cost
Per Unit Variable Cost 0.00 0.00
Selling Price
Contribution per Unit
Units Sold
Total Contribution 0.00 0.00 0.00
Total Fixed Costs for Standard and Baleno Models 0.00
Total Earnings before Interest and Tax 0.00 Check Figure: 1,379,600.00
Calculation of Fixed Costs (in ₹)
Total 0.00
Note: ₹ = INR = Indian rupee; US$1 = ₹54.35 on April 1, 2013

BREAK-EVEN POINT & DESIRED PROF

EXHIBIT TN-8: CALCULATION OF HARSH ELECTRICALS BREAK-EVEN POINT (IN ₹)
Model Sales Mix Contribution Contribution of the Bundle
Standard 4.00 0.00 0.00
Baleno 1.00 0.00 0.00
Total 0.00
Fixed Cost 0.00
BEP in bundles Fixed Costs / Contribution ERROR:#DIV/0!
BEP in units
Standard
Baleno
BEP in revenue
Standard
Baleno
Total Check Figure: 4,357,500.00
Note: ₹ = INR = Indian rupee; US$1 = ₹54.35 on April 1, 2013; BEP = break-even point
EXHIBIT TN-9: HARSH ELECTRICALS SALES REQUIRED FOR THE DESIRED PROFIT
Desired Profit (as in 2010–11)
Desired EBIT (as in 2010–11)
Desired Contribution
Required Sales in Bundles
Sales of Standard Model (in units)
Sales of Baleno Model (in units)
Total Sales of Both Models (in units)
Sales of Standard Model
Sales of Baleno Model
Required Revenue for profit desired Check Figure: [$INR] 8,642,500.00
Note: ₹ = INR = Indian rupee; US$1 = ₹54.35 on April 1, 2013; EBIT = earnings before interest and taxes
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