Purpose of the Study: The main purpose of this study is to understand the costing model applied in the ice cream industry and the method adopted in ascertain the cost per unit. Ascertainment of cost per ice cream cone is most challenging job the ice cream cone are not sold on per unit bases from the point of manufacture to the retailer. They are sold in a packet of 10 cones. But yet based on the no. of cones that are manufactured with the use of basic raw materials and other ingredients. It is possible to know the cost per cone ice cream. Cost Sheet: Cost sheet is a statement, which shows various components of total cost of a product/service. It classifies and analyses the components of cost of a product. It is a statement which shows per unit cost in addition to Total Cost. Selling price is ascertained with the help of cost sheet. The details of total cost presented in the form of a statement is termed as Cost sheet.
Data collection and Analysis Following is the information collected from owner of Happy Ice Cream with respect to component of cost sheet. The information is collected for 5000 cone ice cream manufactured in a month. Based on this the analysis was done to determine the most appropriate way of ascertain the cost per cone. The information collected here are based on the oral interaction done with the owner. Analysis and Findings: • From the analysis of Cost sheet it is found that total cost manufacturing 5000 cone ice cream is Rs. 113500, where as the sales revenue from it is Rs. 150000 per month. Total profit for the month is Rs. 36500. • From the point of Cost per unit, the cost per unit of manufacturing the cone ice cream is Rs. 22.70. whereas the profit per unit is Rs. 7.30 and accordingly the selling price is Rs. 30 per cone ice cream. • From the cost sheet it is also found that the major cost of manufacturing the ice cream goes into raw material cost. Since taste of ice cream is most essential component which cannot be compromised, due to this reason the cost of raw material may be more. • Some cost like labor cost has been allocated on the basis of time spent in manufacturing the cone ice cream. As the labor also manufacture other variety of ice cream, so their labor cost is allocated accordingly. • Depreciation on cold storage room is allocated on monthly basis. Conclusion: From this study it is found that we can apply the concept of cost sheet to indigenous business unit and ascertain the probable cost of a given product/ service. We conclude that small business unit can also make huge amount of profit if cost are properly accounted for.