Cost Sheet

Practical Problems
05-08-20
 Prime Cost Calculation
Particulars Amount
Opening Stock of Raw Material ***
Add: Purchase of Raw materials ***
Add: Purchase Expenses ***
Less: Closing stock of Raw Materials (Raw Materials Consumed ) ***
Direct Wages (Labour) ***
Direct Charges/carriage inwards/ Octroi/ Custom duty ***
***

Prime cost (1)  

 Works Cost Calculation
Particulars Amount
Prime cost (1)  
Add :- Factory Over Heads: Factory Rent Factory Power Indirect Material  
***
Indirect Wages/unproductive wages
***
Drawing Office Salary Factory Insurance ***
Factory Asset Depreciation (Machinery/Factory Building/Factory furniture)
***
Consumable stores
Fuel and power
Grease and Oil

Works cost Incurred  

Add: Opening Stock of WIP ***
Less: Closing Stock of WIP ***
Works cost (2)  
 Cost of Production
Particulars Amount
Works cost (2)  

Add:- Administration Over Heads:- Office Rent  

***
Depreciation on office assets
***
Office salaries ***
General Charges Audit Fees ***
Bank Charges ***
Oher Office Expenses/office lighting/ ***

Cost of Production (3)  

 Cost of Sales
Cost of Production (3)  
Add: Opening stock of Finished Goods   ***
Less: Closing stock of Finished Goods ***
Cost of Goods Sold (4)  
Add:- Selling and Distribution Overheads  
***
Sales man Commission
***
Sales man salary Traveling Expenses ***
Advertisement ***
Delivery man expenses Sales Tax ***
Bad Debts ***
***
Cost of Sales (5)  
Profit (balancing figure)  
Sales  
Calculate cost of goods sold from the
following
 Solution
Particularts Amount

Cost of production 100,000

Add + Opening Finished stock 10,000

Less – Closing Finished stock 15,000

Cost of Goods Sold 95,000

Calculate cost of sales
 Solution
Particularts Amount
(Rs.)
Cost of goods sold 75,000

Add: Selling & Distribution expenses

Selling expenses 10,000

Advertisement cost 5,000

Salesman’ s salaries 10,000

Cost of sales 100,000

• If Actual Sales value is Rs. 150,000 then we can calculate
profit
• ????????????
 Solution
• Profit = Sales – Cost of sales
• Profit = 150000 – 100000 = 50000
Example
Prepare cost sheet from following