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  • Flow of Sequence of All Costs Including Work in Progress

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    Umesh Arora
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    This document summarizes the prime costs, factory overheads, cost of production, cost of sales, non-manufacturing administrative overheads, sales and overheads expenses, and net profit/loss for a company. It provides line item details of direct material costs, direct labor costs, indirect expenses, depreciation costs, finished goods, cost of goods sold, sales expenses and calculates the net profit/loss.

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    This document summarizes the prime costs, factory overheads, cost of production, cost of sales, non-manufacturing administrative overheads, sales and overheads expenses, and net profit/loss for a company. It provides line item details of direct material costs, direct labor costs, indirect expenses, depreciation costs, finished goods, cost of goods sold, sales expenses and calculates the net profit/loss.

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    Download as xlsx, pdf, or txt
    17 views7 pages

    Flow of Sequence of All Costs Including Work in Progress

    Uploaded by

    Umesh Arora
    This document summarizes the prime costs, factory overheads, cost of production, cost of sales, non-manufacturing administrative overheads, sales and overheads expenses, and net profit/loss for a company. It provides line item details of direct material costs, direct labor costs, indirect expenses, depreciation costs, finished goods, cost of goods sold, sales expenses and calculates the net profit/loss.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 7

    a) Prime Cost

    Prime Cost = Direct Material Cost + Direct Labour Cost


    Amount
    Direct Material Cost
    Add: Raw Material (beginning) 140000
    Add: Material purchased 320000
    Add: Freight on materials 16000
    Less: purchase returns -4800
    Less: Raw material (closing) -180000
    Total Direct Material Cost 291200

    Direct Labour Cost:


    Direct Labour: 160000
    add: Accrued Exp 8000
    Direct Labour Cost: 168000
    Direct Exp 50000
    Total Prime Cost 509200

    Manufacturing/ Factory Overheads:


    Add: Indirect labor 18000
    Add: Factory Supervision 10000
    Add: Factory repairs and upkeep 14000
    Add: Heat Light and power 65000 80% 52000
    Add: Accrued exp - Indirect labor 1200
    add: Depreciation
    -Plant & Machinery 460500 10% 46050
    -building 200000 3% 6400
    Add: Rates & taxes 6300 66.67% 4200
    Add: Misc Exp factory 18700
    Total Factory Overheads 170550

    Cost of Production:
    Prime Cost 509200
    Factory Overheads 170550
    Work Cost Gross 679750
    Raw material Work in progress: 8000
    Total Cost of production 687750

    Cost of Sales
    add: Cost of manufacturing/ production 687750
    add: finished goods (beginning) 80000
    less: finished good (closing) -115000
    Cost of goods sold 652750
    Add: non-manufacturing admin oH
    . Heat, Light & Power 65000 10% 6500
    . R&T 6300 33.33% 2100
    add: office salary & exp 8600
    add: depreciation on buildings 200000 0.004 800
    add: dep on office appliances 17500 5% 875
    Total non manf, admin OH 18875

    Sales & Overheads Exp.


    add: Sales commission 33600
    add: sales travelling 11000
    add: sales promotion 22500
    add: distribution dept. 18000
    add: Heat, light & power 65000 10% 6500
    add: dep on 200000 0.004 800
    Total Sales Ohs 92400

    Total non manuf OH 111275

    Total cost of Sales 764025

    Sales 754000
    Total cost of Sales 764025

    Net profit/ loss (before Interest & Bad debts) -10025

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