cost accounting group 4.ppt
TRANSCRIPT
Cost Sheet – TATA NANO
SEATGroup 4
101.Vidhi Agarwal111. Biswarup Das118.Gouav Kumar Ganguly122.Digant Vaibhav Gupta130.Gurdeep Kaur139.Gaur Hari Pal
Roadmap
• 1. Introduction (by Gaur Hari)• 2. Rental and Electricity Costs (by Gurdeep)• 3. Material Costs (by Digant)• 4. Labour Costs (by Vidhi)• 5. Costing Method, Assumptions (by Biswarup)• 6. Cost Sheet, Pricing, Analysis (by Gourav)
IntroductionGaur Hari Pal
TATA Motors and Nano – Overview
• Tata Motors Limited is India’s largest automobile company, with consolidated revenues of INR 2,32,834 crores (USD 38.9 billion) in 2013-14. It is the leader in commercial vehicles in each segment, and among the top in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments.
• The Tata Nano is a city car manufactured by Tata Motors. Made and sold in India, the Nano was initially launched with a price tag of 1100,000 (US$1,600) which was ultimately increased with time.
Car Seat
COMPONENTS BREAK UP:•Seat frames, •Armrest structures, •Headrest structures, •Backrest structures and components, •Seat cushion structures•Front seat towel bars, •Seat height-adjuster components, •Car seat cushion wire frames,
Rental and ElectricityGurdeep Kaur
Costs Break-down
Material CostsDigant Vaibhav Gupta
Costs Break-down
Labour CostsVidhi Agarwal
Costs Break-down
Costing Method, Assumptions
Biswarup Das
Costing Method
• We have chosen the Process Costing Methodology here
• As car seat manufacturing is mostly an assembly line process, hence it is more efficient if we utilise this technique
Process Costing
• Process costing is an accounting methodology that traces and accumulates direct costs, and allocates indirect costs of a manufacturing process. Costs are assigned to products, usually in a large batch, which might include an entire month's production. Eventually, costs have to be allocated to individual units of product.
• It assigns average costs to each unit, and is the opposite extreme of Job costing which attempts to measure individual costs of production of each unit.
Manufacturing Cost Assumptions
• Sheet metal thickness is assumed to be 3mm
• 0.90 wide mesh grades have been used• 8mm OD has been taken for tubular
structures
Cost SheetGourav Kumar Ganguly
Approportioning by Direct Labour Hours
Cost Sheet
Process 1 - BlankingDR CR
Particulars Amount Particulars AmountMaterial 436.1904 Output 1073.579Labour 628.0688 OH 9.32 TOTAL 1073.579 1073.579
Process 2 - RivetingDR CR
Particulars Amount Particulars AmountProcess 1 1073.579 Output 1610.369Material 218.0952Labour 314.0344 OH 4.66 TOTAL 1610.369 1610.369
Process 3 - CrimpingDR CR
Particulars Amount Particulars AmountProcess 2 1610.369 Output 2147.158Material 218.0952Labour 314.0344 OH 4.66 TOTAL 2147.158 2147.158
Process 4 - BoringDR CR
Particulars Amount Particulars AmountProcess 3 2147.158Output 2683.948Material 218.0952Labour 314.0344 OH 4.66 TOTAL 2683.948 2683.948
Process 5 - WeldingDR CR
Particulars Amount Particulars AmountProcess 4 2683.948Output 3757.527Material 436.1904Labour 628.0688 OH 9.32 TOTAL 3757.527 3757.527
Process 6 - JoiningDR CR
Particulars Amount Particulars AmountProcess 5 3757.527Output 4294.317Material 218.0952Labour 314.0344 OH 4.66 TOTAL 4294.317 4294.317
Process 7 - Die CastingDR CR
Particulars Amount Particulars AmountProcess 6 4294.317Output 10199Material 2399.047Labour 3454.378 OH 51.26 TOTAL 10199 10199
Process 8 - SolderingDR CR
Particulars Amount Particulars AmountProcess 7 10199Output 11272.58Material 436.1904Labour 628.0688 OH 9.32 TOTAL 11272.58 11272.58
Process 9 - FormingDR CR
Particulars Amount Particulars AmountProcess 8 11272.58Output 12346.16Material 436.1904Labour 628.0688 OH 9.32 TOTAL 12346.16 12346.16
Cost SheetProcess 10 - Cutting
DR CRParticulars Amount Particulars AmountProcess 9 12346.16Output 13419.74Material 436.1904Labour 628.0688 OH 9.32 TOTAL 13419.74 13419.74
Process 11 - BendingDR CR
Particulars Amount Particulars AmountProcess 10 13419.74Output 14493.32Material 436.1904Labour 628.0688 OH 9.32 TOTAL 14493.32 14493.32
Process 12 - Die Cushion Deep DrawingDR CR
Particulars Amount Particulars AmountProcess 11 14493.32Output 15566.9Material 436.1904Labour 628.0688 OH 9.32 TOTAL 15566.9 15566.9
Process 13 - IroningDR CR
Particulars Amount Particulars AmountProcess 12 15566.9 Output 17982.45Material 981.4284Labour 1413.155 OH 20.97 TOTAL 17982.45 17982.45
Process 14 - SpinningDR CR
Particulars Amount Particulars AmountProcess 13 17982.45Output 18519.24Material 218.0952Labour 314.0344 OH 4.66 TOTAL 18519.24 18519.24
Process 15 - Rubber FormingDR CR
Particulars Amount Particulars AmountProcess 14 18519.24Output 24423.93Material 2399.047Labour 3454.378 OH 51.26 TOTAL 24423.93 24423.93
Margins and Pricing
• The Cost of the seat comes to Rs.24424.• Adding an optimistic margin (automotive
industry) of 5%, we arrive at a Price of :• Rs.25645
Analysis
• The Highest Costing Processes are Rubber forming and Die Casting.
• As these are specialised processes requiring special skill-sets, the labour hours assigned to them constitute almost 44% of the Direct Labour Hours