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2 Cost Sheet

The document outlines the components that make up the costs of raw materials, production, sales, and profits for a manufacturing company. It includes opening and closing stock amounts for raw materials and work-in-progress at different stages. Production costs include direct expenses, wages, factory overheads, and office/administration overheads. Sales and distribution costs include expenses related to selling, delivery, and advertising. Profits are calculated either as a percentage of costs or sales.

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Anurag Agarwal
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1K views3 pages

2 Cost Sheet

The document outlines the components that make up the costs of raw materials, production, sales, and profits for a manufacturing company. It includes opening and closing stock amounts for raw materials and work-in-progress at different stages. Production costs include direct expenses, wages, factory overheads, and office/administration overheads. Sales and distribution costs include expenses related to selling, delivery, and advertising. Profits are calculated either as a percentage of costs or sales.

Uploaded by

Anurag Agarwal
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Cost sheet

Particulars Opening stock of raw materials Add: Purchase Add: Carriage inward/freight inward/octroi inward Add: Import duty/customs duty/dock charges Add: Landing charges Add: Insurance of raw materials Add: Any other expenses relating to raw materials Less: Closing stock of raw materials Less: Returns outward Less: Abnormal loss of raw materials COST OF RAW MATERIALS CONSUMED Add: Direct wages/productive wages/manufacturing wages Add: Chargeable expense Add: Hire charges of machinery Add: Direct expenses Add: Royalty on production Add: Drawing office expenses/drawing office salary Add: Any other direct expenses Add: Opening stock of work-in-progress at primary stage Less: Closing stock of work-in-progress at primary stage PRIME COST ADD: FACTORY OVERHEADS:Indirect wages/salaries Cost of idle time Factory supervisor salary Consumable stores Cost of rectifying defective work Depreciation on machinery and other fixed assets Research and experiment Remuneration of technical director Internal transport cost Power and fuel Electricity of factory Haulage Water turbine cost Cold rolling mill expenses Any other factory expenses Less: Sale of scrap/salvage value Add: Opening stock of work-in-progress at semi-process stage Less: Closing stock of work-in-progress at semi-process stage WORKS COST Amount / / / / / / (/) (/) (/) Amount

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ADD: OFFICE AND ADMINISTRATION OVERHEADS:Postage and stationery Salary to office staff Audit fees Printing charges Personal department expenses Depreciation on office assets Hire charges of office assets Directors fees Any other office expenses Legal expenses/solicitors fees COST OF PRODUCTON Add: Opening stock of finished goods Less: Closing stock of finished goods [Note 7] COST OF GOODS SOLD ADD: SELLING AND DISTRIBUTION EXPENSES:Salesmans salary Branch office expenses Lightning of showroom/showroom expenses Depreciation on selling assets (Delivery van) Any other charges relating to delivery van Warehouse of finished goods Insurance of finished goods Distribution expenses Advertisement Publicity cost Packing charges Travelling expenses Export duty Carriage outward/freight outward Commission/ bonus paid to sales staff Catalog/price list Any other selling expenses Add: opening stock of work in progress at secondary stage Less: Closing stock of work in progress at secondary stage COST OF SALES Add: Profit SALES NOTES: -

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1) If nothing is mentioned about work in-progress, then take it at semi-process stage. 2) If only wages is mentioned in the sum and no direct wages are there in the sum then assume the wages as direct wages. 3) Number of units produced = Closing stock + Sales Opening stock

4) If office and administration overheads is to be calculated at Rs.1/unit, then it will be calculated as Rs.1 * number of units produced. 5) Royalty on production is to be calculated on the number of units produced. 6) Selling and Distribution Overheads is to be calculated on the number of units sold. 7) Calculation for closing stock of finished goods:a) Under FIFO method: Cost of production . * No. of units left as closing stock Total no. of units produced b) Under LIFO method:E.g.: Opening stock = 8,000 units, valued at Rs.1,60,000 Production = ? (80,000 10,000 + 8,000) Sales = 80,000 units Under LIFO method, 80,000 units will be issued from 82,000. So the closing stock will be 2,000 units of new stock and 8,000 units of old stock. Therefore, value of 8,000 units = 1,60,000 Value of 2,000 units = Cost of production . * Closing stock No. of units produced 8) Financial charges such as discount allowed, discount received, interest on capital, donations, Commission received/allowed, income tax, interest on drawings or any other amount which are not related to production will not come in cost sheet. 9) Profit calculation: a) Profit is 10% on cost b) Profit is 10% on sales For point no. (b), e.g.: Let SP = 100, Profit =10, CP =90 When CP = 90, SP = 100 When CP = Cost of sale, SP = 100 * Cost of sales. 90

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