Cost sheet

Statement of cost of ……….. For the period ending ………..

Particulars Amount Amount
(in Rs) (in Rs)
Direct material / raw material consumed
Direct / productive wages
Direct expenses
Prime cost
Add: Factory/ works overheads or expenses
Factory on cost
Add: opening stock of work-in-progress
Less: closing stock of work-in-progress
Factory cost
Add: Administrative / office overheads or expenses
cost of production
Add: opening stock of finished goods
Less: closing stock of finished goods
cost of goods sold
Add: selling and distribution overheads or expenses
cost of sales
Profit/loss
sales
 Factory / Works -overheads / expenses

• Wages of foreman
• Depreciation on plant and machinery
• Factory rent / lighting / repairs and renewals
• Oil gas and fuel
• Electric power
• Store keeper’s wages
• Consumable stores
 Administrative overheads
• Office lighting / rent / repairs and renewals
• Office premises depreciation
• Manager’s salary
• Directors’ fees
• Office stationery
• Telephone charges
• Postage and telegrams
 Selling and distribution overheads/ expenses
• Salesmen’s salaries
• Travelling expenses
• Advertising
• Warehouse charges
• Carriage outward
• Bad debts written off
 Solution 1
• Statement of cost of Arun for the period
ending 31/12/2019
Particulars Amount Amount
(in Rs.) (in Rs.)
Direct materials 100000
Direct labour 30000
Prime cost 130000
Add: Works overhead:
Wages of foreman 2500
Electric power 500
Factory lighting 1500
Store keeper’s wages 1000
Oil and water 500
Factory rent 5000
Factory plant repairs and renewals 3500
Factory plant depreciation 500
Consumable stores 2500
17500
Works cost 147500
 Solution 1
Particulars Amount Amount
(in Rs.) (in Rs.)

Works cost 147500

Add: Administrative overheads

Office lighting 500
Office rent 2500
Office premises repairs and renewals 500
Office premises depreciation 1250
Manager’s salary 5000
Directors’ fees 1250
Office stationery 500
Telephone charges 125
Postage and telegrams 250
11875
Cost of production 159375
 Solution 1
Particulars Amount Amount
(in Rs.) (in Rs.)

Cost of production 159375

Add: Selling and distribution overheads

Salesmen’s salaries 1250
Travelling expenses 500
Advertising 1250
Warehouse charges 500
Carriage outward 375
3875
cost of sales 163250
Profit 26250
Sales 189500
 Question J1
Factory cleaning
Sundry office expenses
Estimating expenses (works)
Factory stationery
Office stationery
Loose tools written off
Rent and taxes (office)
Water supply (works)
Factory insurance
Office insurance
Legal expenses
Rent of warehouse
Depreciation on
Plant and machinery
Office building
Delivery vans
Bad debts
Advertising
Sales dept’s salaries
Upkeeping of delivery vans
Bank charges
Commission on sales
Raw materials
Productive wages
Unproductive wages
Factory rent and taxes
Factory lighting
Factory heating
Motive power
Haulage (works)
Director’s fees (works)
Director’s fees (office)
 Prime cost

Raw material consumed

Opening stock of raw materials
Add: Purchase of raw materials
Carriage on purchase of raw material
Less: Closing stock of raw material

Direct wages / productive wages

Direct expenses
 Factory overheads
• Factory cleaning
• Estimating expenses (works)
• Factory stationery
• Water supply (works)
• Factory insurance
• Depreciation on Plant and machinery
• Unproductive wages
• Factory rent and taxes
• Factory lighting
• Factory heating
• Motive power
• Haulage (works)
• Director’s fees (works)
• Loose tools written off
 Office overheads
Sundry office expenses
Office stationery
Rent and taxes (office)
Office insurance
Legal expenses
Depreciation on Office building
Bank charges
Director’s fees (office)
 Selling and distribution overheads

Rent of warehouse
Depreciation on Delivery vans
Bad debts
Advertising
Sales dept’s salaries
Upkeeping of delivery vans
Commission on sales
 Solution J 1
Cost sheet for the period ending 31/12/1998
Particulars Amount Amount
(in Rs) (in Rs)
Raw materials 33000
Productive wages 38000
Prime cost 71000
Add: Factory overheads
Factory cleaning 500
Estimating expenses (works) 800
Factory stationery 750
Water supply (works) 1200
Factory insurance 1100
Depreciation on Plant and machinery 2000
Unproductive wages 10500
Factory rent and taxes 7500
Factory lighting 2200
Factory heating 1500
Motive power 4400
Haulage (works) 3000
Director’s fees (works) 1000
Loose tools written off 600 37050
Factory cost 108050
 contd
Particulars Amount Amount (in Rs) (in Rs)
Factory cost 108050
Add: Administrative overheads
Sundry office expenses 200
Office stationery 900
Rent and taxes (office) 500
Office insurance 500
Legal expenses 400
Depreciation on Office building 1000
Bank charges 50
Director’s fees (office) 2000
5550 Cost of production 113600
Add: Selling and distribution overheads
Rent of warehouse 300
Depreciation on Delivery vans 200
Bad debts 100
Advertising 300
Sales dept’s salaries 1500
Upkeeping of delivery vans700
Commission on sales 1500
4600 COST OF SALES 118200
 SOLUTION J2
Statement of cost of Z manufacturing company for the period ending 30/06/1970
Particulars Amount Amount
(in Rs) (in Rs)
Raw material consumed
opening stock of raw material 62800
Add: Purchase of raw material 185000
Carriage on purchases 7150
254950
Less: Closing stock of raw material 48000
206950
Productive wages 126000
Prime cost 332950 Add: Factory/ works overheads or
expenses
Factory office salaries 6500
Depreciation on Plant Machinery and Tools 6500
Repairs of Plant Machinery and Tools 4450
Factory rent rates taxes and insurance 8500
Factory gas and water 1200
Manager’s salary (factory) 7500
34650
Factory cost 367600
Particulars Amount Amount
(in Rs) (in Rs)
Factory cost 367600
Add: Administrative / office overheads or expenses
General office salaries 12600
Office rent rates taxes and insurance 2000
Director’s fees 6000
Office gas and water 400
Manager’s salary (Office) 2500
General expenses 3400
Depreciation on office furniture 300
27200
Cost of production 394800
Add: selling and distribution overheads or expenses
Carriage outwards 4300
Bad debts written off 6500
Travelling expense 2100
Travelers' salaries and commission 7700
20600
cost of sales 415400 Profit/loss 45700 sales 461100
 Solution J3

Particulars Amount
(in Rs.) Raw material consumed
Opening stock of raw materials 10000
Add: Purchase of raw materials 60000
Carriage inwards 1500
71500
Less: Closing stock of raw material 20000
Materials returned to suppliers1500
21500 50000
Direct wages 50000
Chargeable expenses 5000
Prime cost 105000
 Solution J7
Statement of cost of a manufacturing concern for the period ending 30/09/1998
Particulars Amount Amount
(in Rs) (in Rs)
Raw material consumed
Opening stock of raw material 100000
Add: Purchase of raw material 88000
188000
Less: Closing stock of raw material 123500
64500
Direct wages 70000
Prime cost 134500
Add: Factory overheads
Works expenses 39500
Less: Sale of factory scrap 2000
37500
Add: opening stock of work-in-progress 31000
68500
Less: Closing stock of work-in-progress 34500
34000
Factory cost 168500
Add: Administrative overheads
Administrative expenses 13000
Cost of production 181500
Add: opening stock of finished goods 71500
253000
Less: Closing stock of finished goods 42000
Cost of goods sold 211000
Add: Selling and distribution overheads
Selling and distribution expenses 15000
Cost of sales 226000
Profit 58000
Sales 284000
 Solution J4
Statement of cost for the period ending
Particulars Amount Amount
(in Rs) (in Rs per unit)

Cost of production (11000 units) 44000 4.0

Less: Closing stock of
finished goods
(11000-9000 = 2000 x 4) 8000
Cost of goods sold 36000 4.0
Add: Selling and distribution
expenses
Selling expenses (9000 x 0.40) 3600 0.40
Cost of sales 39600 4.40
Profit 14400 1.60
Sales 54000 6.00
 Solution J9
Statement of cost for the month ending September 1992
Particulars Amount Per unit
(in Rs)
Raw material used 40000 2
Direct wages 24000 1.2
Prime cost 64000 3.2
Add: Factory overheads
(9500 x 4) 38000 1.9
Factory cost 102000 5.1
Add: Office overheads (.2 x 102000) 20400 1.02
Cost of production 122400 6.12
Less: Closing stock of finished goods
(2000 x 6.12) 12240
Cost of goods sold 110160 6.12
Add: selling and distribution overheads 18000 1.00
Cost of sales 128160 7.12
Profit 15840 2.88
Sales 180000 10.00