Output or Unit Costing (Cost Sheet)

Output costing also known as Single Costing, is a method of cost ascertainment, which is used in those industries in which production consists of a single product.

Type of Industries
Brick Works Cement Industry Dairies Steel Mills Paper Mills Sugar Mills

Period: June 2012

Cost Sheet

Output : 10,000Units Amount (Rs) Cost/Unit xxx x

Raw Material Consumed (Opening Stock of RM + Purchase of RM+ Carriage + FreightClosing Stock of RM) Direct Wages/ Labour Prime Cost Factory Overhead Opening W-I-P Closing W-I-P) Works Cost Office & Administration Overhead Cost of Production Opening Stock of FG Less : Closing stock of FG Cost of Goods Sold Selling & Distribution Overhead Cost of Sales Profit Sales

xxx XXX xxx xxx XXX xxx XXX xxx xxx XXX xxx XXX XXX XXX

x x x x x x xxx

x x x x x

 Cost Sheet is defined as a document which provides for the assembly of the detailed cost of a cost centre or cost unit. Purpose:
(a)Reveals the total cost & cost per unit of goods produced (b)Discloses the break-up of total cost into different elements of cost (c)Provides a comparative study of the cost of current period with that of the corresponding previous period (d)Acts as a guide to management in fixation of selling prices and quotation of tenders.

Prepare a cost Sheet

Raw Material Consumed-15,000; Direct Labour-9,000; Machine Hours worked-900 hrs @ Rs 5 Administration Overhead- 20% on Works Cost Selling Overhead- Rs0.50 per unit Unit Produced- 17,100 units Unit Sold 16,000 units @Rs 4 per unit

Valuation of Closing Stock of Finished Goods under different Methods like FIFO, LIFO, Simple Average, Weighted Average
Question / Information:

Output (units) Sales (units) Opening Stock of FG Closing Stock of FG Cost of Production

88,000 80,000 16,000 units @ Rs 4 24,000 units Rs 4,36,000

Thank You