Cost Sheet

Topics: Cost, Inventory, Material Pages: 8 (1682 words) Published: January 27, 2015
In the books of a Company
Cost Sheet for the period ended……..
Units Produced…..
Name of the product unit sold….

Particulars
Total cost Rs.
Unit Cost Rs.

Opening stock raw materials

Add
Purchases of Raw Materials

Add:
Expenses on Purchases of Raw Materials (octroi & duty)

Less:
Closing stock of raw materials

Less:
Sale of scrap or defectives of raw materials

=
Cost of materials consumed

Add:
Productive Labour

Add:
Outstanding wages

Add:
Direct Expenses( architect’s fees)

=
Prime cost

Add:
Factory overheads

Add:
Opening stock of Work-in-progress

Less:
Closing stock of Work-in-progress

Less:
Sale of scrap or defectives of Work-in-progress

=
Factory cost

Add:
Office overheads

=
Cost of Production

Add:
Opening Stock of Finished Goods

Less:
Closing Stock of Finished Stock

=
Cost of Goods Sold

Add:
Selling & Distribution Overheads

=
Total cost

Add
Profit

Less
Loss

=
Sales

Non cost items
ie. Items to be excluded from cost.
1. Financial Incomes:
Capital profits, dividend received, brokerage & commission received, share transfer fees, interest on investments, rent received , bad debts recovery, interest on loan given. 2. Financial charges
capital losses, cash discount , trade discount, penalties & fines, share transfer fees paid, interest on debentures, preliminary expenses, underwriting commission, discount on issue of shares and debentures, loss on investment, capital expenses, interest on capital, salary or commission paid to partner, income tax, wealth tax, interest on debentures, reconstruction expenses, development expenses. 3. Appropriations:

Bad debts reserve, dividends paid, charitable donations, transfer to reserve, sinking fund, debenture redumption fund, machinery replacement fund, investment fluctuation fund. 4. Abnormals:
Abnormal wastage, abnormal idle time, loss by fire, loss by theft, loss of stock, insurance premium.

Q. 1) The cost accounts of A Ltd. Mumbai, for the year ended 31st March 2009 showed the following information. Types of stock
As on 1-4-2008
As on 31-3-2009
Raw materials
75,000
86,000
Work-in-progress
1,20,000
75,000
Finished stock
44,000
21,000

Underwriting commission
12,000
Purchase of raw material
1,58,000
Selling overheads
23,000
Drawing Office salaries
5,600
Productive Labour
36,700
Audit fees
13,900
Establishment on cost
36,000
Steam, gas and water
4,300
Sales
6,78,800
Rent
24,000
(factory 80%, office 20%)

Architect’s fees
12,700
Wages outstanding
54,000
Octroi and duty
3,000
Distribution on cost
12,800
Solution:
In the books of a Company
Cost Sheet for the period ended……..
Units Produced…..
Name of the product unit sold….

Particulars
Total cost Rs.
Unit Cost Rs.

Opening stock raw materials
75,000

Add
Purchases of Raw Materials
1,58,000

Add:
Expenses on Purchases of Raw Materials (octroi & duty)
3,000

Less:
Closing stock of raw materials
86,000

Less:
Sale of scrap or defectives of raw materials
0

=
Cost of materials consumed
1,50,000

Add:
Productive Labour
36,700

Add:
Outstanding wages
54,000

Add:
Direct Expenses( architect’s fees)
12,700

=
Prime cost
2,53,400

Add:
Factory overheads
29,100

Add:
Opening stock of Work-in-progress
1,20,000

Less:
Closing stock of Work-in-progress
75,000

Less:
Sale of scrap or defectives of Work-in-progress

=
Factory cost
3,27,500

Add:
Office overheads
54,700

=
Cost of Production
3,82,200

Add:
Opening Stock of Finished Goods
44,000

Less:
Closing Stock of Finished Stock
21,000

=
Cost of Goods Sold
4,05,200

Add:
Selling & Distribution Overheads
35,800

=
Total cost
4,41,000

Add
Profit
2,37,800

Less
Loss

=
Sales
6,78,800

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