Cost Sheet

Cost Sheet is prepared to find the cost of the production , cost of goods sold and cost of sales. This is prepared to know the associated cost of product with profit so that Management can take decision to reduce the cost and maximize the profit.

There are following steps to prepare the cost sheet-

1- To know the production and sales during the period.

2- Calculate raw material consumed for the production as follows-

Opening stock                                       ………

Add: Purchase                                       ………

Less: Closing stock                                ——

Cost of Raw Material Consumed

3- Prime Cost: Prime Cost is the sum total of Raw Material Cost+ Direct Labour and other Direct Exp.

4- Cost of  production: When we add Manufacturing overhead in prime cost, then sum total of it is known as cost of production

5-Cost of Sales: When we add Admin and selling expenses in the cost of production, we find cost of sales

Note: If there is any  opening opening and closing stock of WIP  and finished stock, we do adjustment in the cost of production and cost of sales.

Format of Cost Sheet

Cost Sheet
For the month of ……
Particulars Sub Total Total Cost (Rs.) Cost Per Unit (Rs.)
Raw Material Consumed ((Op. Stock +Purchase-Cl. Stock)) 0
Direct Wages 0
 Power & Fuel 0
Othe Direct Exp 0
                          –
Prime Cost                           –
Factory (Works) Overheads:
 Indirect Materials                             –
Repairs & Maintenance                             –
                          –
Add: Opening WIP                           –
                          –
Less: Closing WIP                           –
Factory (Works) Cost                           –                                 –
Adminstrative Overheads:
Guest House Exp                             –
Gardening Exp                             –
 Salary Exp                             –
License fees                             –
Security Exp                             –
Vehicle Hire Charges                             –
Audit Expenses                             –
Consultancy Fees                             –
Printing and Stationary                             –
Computer & Software Maint                             –
Bank Charges                             –
General Insurance                             –
                          –
Cost of Production                           –
     Add: Opening Stock of Finished Products                           –
Cost of Goods available for sale                           –
     Less: Closing Stock of Finished Products                           –
Cost of Goods sold                           –
Selling and Distribution Overheads:
Promotional exp.
Total cost = Cost of Sales                           –
Add: Profit                           –
Total Sales                           –

 

 

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