COST SHEET – FORMAT

Particulars Amount Amount Cost

per
unit
Opening Stock of Raw Material ***
Add: Purchase of Raw materials ***
Add: Purchase Expenses ***
Less: Closing stock of Raw Materials ***
Raw Materials Consumed ***
Direct Wages (Labour) ***
Direct Charges (Expenses) ***
Prime cost ****
Add :- Factory Over Heads:
Factory Rent ***
Factory Power ***
Indirect Material ***
Indirect Wages ***
Supervisor Salary
***
Drawing Office Salary
***
Factory Insurance
***
Factory Asset Depreciation
*** ***
Gross factory Cost/ Gross Works cost ***
Add: Opening Stock of WIP ***
Less: Closing Stock of WIP ***
Net factory Cost/ Net Works cost ***

Add:-Office and Administration Over Heads:-

 Office Rent ***
Asset Depreciation ***
General Charges ***
Audit Fees ***
Bank Charges ***
Counting house Salary ***
Other Office Expenses *** ***
Cost of Production ***
Add: Opening stock of Finished Goods ***
Less: Closing stock of Finished Goods ***
Cost of Goods Sold ***
Add:- Selling and Distribution OH:-
Sales man Commission ***
Sales man salary ***
Traveling Expenses ***
Advertisement ***
Delivery man expenses ***
Sales Tax ***
Bad Debts *** ***
Cost of Sales OR Total Cost ***
Profit (balancing figure) ***
Sales ***

Notes:-
1) Factory Over Heads are recovered as a percentage of direct wages
2) Administration Over Heads, Selling and Distribution Overheads are recovered as a percentage
of works cost.
Items excluded from Cost Sheet
All capital expenditure will not include in cost accounting when we calculate total cost of
product. Following are the main examples of expenses which will be excluded from cost.

1. Income tax and advance tax

2. Dividend paid
3. Discount on issue of shares and debentures
4. Underwriting commission payment
5. Capital losses
6. Expenses for purchasing of fixed assets
7. Loss on the sale of fixed asset
8. Interest on capital
9. Abnormal loss of material
10. Over depreciation
11.Investment of profit