a cost shi vetrug oasis as desired by management. Specimen of t is given below Specimen of Cost Sheet Cost Sheet for the Period__ Production Direct materials: ee Opening stock Purchases eee e REE Scanned with CamScannerCost: Concepts and Classifications (_55 Total cost (%) Cost per unit (%) Carriage inwards 1p stock Less: Closi Less: Serap Direct materials consumed {etangeob he or) Direct wages Direct expenst 1, Prime Cost “gdd: Factory Overheads: Indirect materials Loose tools Indirect wages Rent and rates (factory) Lighting and heating (factory) Power and fuel Repairs and maintenance Cleaning Drawing office expenses Cost of research and experiments Depreciation of factory plant Works stationery Welfare service expenses Insurance—Fixed assets etc. —Stock and finished goods Works Managers’ salaries IL Factory or Works Cost Add: Office and Administrative Overheads: Rent and rates (office) Salaries (office) Lighting and heating Insurance of office building and equipments ete. Telephone and postages | | Printing and stationery Depreciation of furniture and office equipments and buildings Legal expenses Audit fees Bank charges (Contd) Scanned with CamScanner56 ) Cost Accounting Il. Cost of Production Add: Selling and Distribution Overheads: Showroom rent and rates Lighting and heating Salesmen’s salaries Total cost (%) _Cost per unit (%) Commissions Travelling expenses of salesmen Sales printing and stationery Advertising Bad debts Postage Depreciation and expenses of delivery van Debt collection expenses Carriage freight outwards Samples and other free gifts IV. Cost of Sales Net profit (or loss) Sales Note: Items of expenses which are an appropriation of profit should not form a part of a product. Examples of such expenses are: (i) Income Tax; i) Dividends shia (iii) Commission (out of profit) to Managing Diem Parnes (i) Capital loss, arising out of sale of assets; (v) Interest on loan; (vi) Dona aaa ts Aine exp, Discount on shares and debentures; (ix) Underwriting com 4 titing off lat enditu; 8eodwith, Example 2.2 ee Vijay Industries manufactures a product X. On 1 a eects 5000 ished product in stock. Other stocks on Ist January Scanned with CamScanner