COST SHEET AND

STATEMENT OF COST

By- Shiv Pratap Singh Tongar

Cost Sheet

 It is a statement designed to show the output of a particular accounting

period along with breakup of costs.
 It provides information relating to cost per unit at different stages of the
total cost of production.
Importance of Cost Sheet

 Ascertainment of cost

 Controlling Costs

 Fixation of Selling price

 Submitting of tenders
Components of Total Cost

 Prime Cost

 Factory Cost
Elements Of Cost

 Direct Materials
 Direct Labour
 Other Direct or Chargeable Expenses
 Prime Cost
 Work Expenses or Overheads
 Scrap or Wastage
Items Required in Preparing of the Cost
Sheet
 Stock Of Raw Materials
 Stock Of Work-in-Progress
 Stock Of Finished Goods
 Carriage Inward
 Scrap Of Materials
Formulaes To Find Out Cost

 Prime Cost = Direct Materials+ Direct Labour+ Direct Expenses

 Factory Cost = Prime Cost+ Works Or Factory Overheads

 Cost Of Production= Works Cost + Administration Overheads

 Cost Of Sales = Cost Of Production+ Selling And Distribution Overheads

Sample Of Cost Sheet
Statement Of Cost

 It Is A Memorandum Statement Which Is Not Made According To The

Double Entry System
 It Is A Statement made To Calculate The Total Cost, Per Unit Cost And
Budget Cost Of Product
 All Elements Of Cost In Statement Of Cost Are Taken From Financial
Accounting’s Historical Records
Difference b/w cost sheet and
statement of cost
 In cost unit, per unit cost of each item of expenses is calculated whereas it
is not shown in statement of cost.
 Cost sheet can be prepared only when quantity of output is given in the
question. If quantity is not given in the question, then statement of cost is
prepared.
 Cost sheet is more useful than statement of cost in case of comparision of
two products or two periods.