COST SHEET – PARLE G BISCUITS INDIA PARTICULARS RAW MATERIALS CONSUMED 1. Wheat flour 2. Sugar 3.

Partially hydrogenated edible vegetable oils 4. Invert syrup 5. Leavening agents (503 Baking powder) 6. Milk 7. solids Salt Emulsifiers (E 322 or E 471 or E 481) Dough conditioners (E 223) DEDUCT (WASTAGE OF MATERIAL)* DIRECT WAGES (LABOUR) 1. Machine tool operator 2. Assembler 3. Machine polisher 4. Equipment operators DIRECT CHARGES * ***
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PRIME COST (1) Add :- FACTORY OVER HEADS:  Factory Rent  Factory Power  Laboratory expenses  Indirect Material  Indirect Wages include storekeepers wages .The inventory of the company that is the raw material is of a week is kept in the store room  Supervisor Salary  Drawing Office Salary  Factory Insurance  Factory Asset Depreciation on following machines • Stephan mixture • Rotary moulder • Oven • Cooling conveyor • Counting unit • Stalking table • Auto feeding machine

Carriage outward 5.ADMINISTRATION OVER HEADS:Stockiest salary* Office Rent General Charges Audit Fees Bank Charges Counting house Salary Other Office Expenses COST OF PRODUCTION (3) Add: Opening stock of Finished Goods Less: Closing stock of Finished Goods COST OF GOODS SOLD Add:.SELLING AND DISTRIBUTION OVERHEADS*:1. Bad Debts COST OF SALES (5) PROFIT (BALANCING FIGURE) SALES *** *** *** *** *** *** *** .WORKS COST INCURRED Add: Opening Stock of WIP Less: Closing Stock of WIP Works cost (2) Add:. Advertising 3. Sales Tax 6. Packaging 2. Sales commission 4.

like sponsoring local events. Expenses for promotion activities. T. Sometimes these can also be distributed as free samples as a part of introductory schemes or simply for tasting. Advertising: Expenses to advertise the biscuits on hoardings. 4. 33 / kg. First is the waste materials fallen on ground. The transportation cost to make these finished goods available to wholesalers and retailers for sale to the final consumer is a part of its . 3. The biscuits industry is highly competitive and advertising is of much importance to boast sales. PARLE G for instance. Second types of waste are the biscuit collected in tray of the multipack wrapping machine.  Stockiest salary-a person responsible for distribution of parle g in rural areas SELLING AND DISTRIBUTION EXPENSES 1. 5. they are given a percentage of total sales done them as sales commission. Such waste material is of 1% which is marginal and acceptable which goes into total waste. Also the packaging helps in easy distribution of biscuits without damaging them. or special events to attract customers also come under advertising expenses. Packaging: The cost of the outer covering of biscuits i. Sales commission: As a part of encouragement for sales people . They are normally assumed to be damaged biscuits but they are not damaged or broken but company keep such loose packets of biscuits to sell it to the local people for marginal rate of Rs. since these biscuit are broken they are not packed and sold to the customer but collected in other tray and sold as broken pieces and sold for less price for cattle feeding. This is to promote sales and is therefore classified as selling and distribution cost. 2. Carriage outward: Mostly the factories making biscuits are located on the outskirts of the city. and radio are selling and distribution costs. gives 5% of the total sales done by the sales people as sales commission. The cost of labeling is a part of the packaging cost only. the poly bags in which they are packed is a selling and distribution cost. The colorful and attractive packaging is to promote sales. All these initiatives are to promote the sales and hence fall under selling and distribution costs.e. Will deduct these wastes from the raw material consumed. Loose biscuits: On the stalking table one to two rows of baked biscuits are kept aside for selling it as loose biscuits.NOTES *There are two type of wastage in factory.V.  * cost of manufacturing limited edition Parle Milano manufactured by trained experts in Australia.

0. . The carriage outward for PARLE G biscuits for instance is Rs.selling and distribution cost.12798 per unit.

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