Opening Stock Raw Materials Add: Purchase Add: Carriage Inward Add: Octroi and Customs Duty Less: Closing Stock of Raw Materials Cost of Direct Material Consumed Add : Direct Wages PRIME COST Add: Works of Factory Overheads Indirect Materials Indirect Wages Leave Wages Bonus to Workers Overtime Wages Fuel and Power Rent and Taxes Insurance Factory Lightings Supervision Works Stationery Canteen and Welfare Expenses Repairs Works Salaries Depreciation of Plant and machinery Works Expenses Gas and Water Technical Director’s Fees Laboratory Expenses Works Transport Expenses Works Telephone Expenses

PARTICULARS TOTAL COST Rs. Add: Opening Stock of Work-in-Progress Less: Closing Stock of Work-in-Progress Less: Sale of Waste ( Scrap ) WORKS COST Add: Office and Administration Overheads Office Salaries Directors Fees Office Rents And Rates Office Stationary and Printing Sundry Office Expenses Depreciation on Office Furniture Subscription to Trade Journals Office Lightings Establishment Charges Directors Travelling Expenses Consultants Fees Contribution to Provident Fund Postage Legal Charges Audit Fees Bank Charges Depreciation &Repairs of Office Equipments Bonus to Staff COST OF PRODUCTION Add :Opening Stock of Finished Goods Less: Closing Stock of Finished Goods COST OF GOODS SOLD . TOTAL COST Rs.

PARTICULARS TOTAL COST Rs. Add: Selling & Distribution Overheads Advertising Show Room Expenses Salesman’s Salaries and Expenses Packing Expenses Carriage Outward Commission of Sales Agents Cost of Catalogues Expenses of Delivery Vans Collection Charges Travelling Expenses Cost of Tenders Warehouse Expenses Cost of Mailing Literature Sales Manager’s Salaries Insurance of Showroom Sales Director’s Fees Sales Office Expenses Rent of Sales Office Depreciation of Delivery Vans Expenses of Sales Branch Establishments Branch Office Expenses TOTAL COST OF SALES Profit or Loss SALES . TOTAL COST Rs.

NON COST ITEMS Non-cost items are those items which do not form part of cost of a product. Managers etc i) Brokerage j) Preliminary Expenses Written off. k) Wealth tax etc . These are items included in the Profit & Loss A/c. Such items should not be considered while ascertaining the cost of a product. These will not come in the cost sheet a) Income tax paid b) Interest on capital c) Interest on loan d) Profit/Loss on Sale of fixed assets e) Donations f) Capital Expenditure g) Discount on shares & Debentures h) Commission to Partners.

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