You are on page 1of 1

Format of Cost Sheet

Direct Material Consumed (= Opening raw material + material purchased during the year
– closing raw material)
+
Direct labor
+
Direct Expenses
= Prime cost
+ Indirect labor
+ Factory or manufacturing overhead
+ Opening WIP
-- Closing WIP
= Factory Cost or Works Cost
+ Administrative Overhead
= Cost of Production or Cost of Goods Manufactured (COGM)
+ Opening Finished Good
-- Closing Finished Good
= Cost of Goods Sold (COGS)
+ Selling & Distribution Overhead
= Cost of Sales
+ Profit
= Sales

Conversion Cost = Direct labor + Direct Expenses + Factory overhead

Number unit Sold = Opening Finished Good + Number of unit produced -- Closing
Finished Good

You might also like