Total Semi- Variable Costs xxx New Recruitments Method (excluding replacements) = Note: Weighted Average Method should

ng replacements) = Note: Weighted Average Method should be preferred to

Less: Total Variable Cost (xxx)
(Variable Cost p.u × Output)
Total Fixed Cost xxx
KEY FACTOR/ LIMITING FACTOR/ PRINCIPAL BUDGET FACTOR
Material is in Short
Supply
Skilled Labour is in Short Contribution per Labour
𝑁𝑜.𝑜𝑓 𝑁𝑒𝑤 𝑅𝑒𝑐𝑟𝑢𝑖𝑡𝑚𝑒𝑛𝑡𝑠 𝑎𝑡 𝑁𝑒𝑤 𝑉𝑎𝑐𝑎𝑛𝑐𝑖𝑒𝑠 𝑑𝑢𝑟𝑖𝑛𝑔 𝑡ℎ𝑒 𝑝𝑒𝑟𝑖𝑜𝑑 be used.
× 100
𝐴𝑣𝑔.𝑁𝑜.𝑜𝑓 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑠𝑠 𝑜𝑛 𝑅𝑜𝑙𝑙 𝑑𝑢𝑟𝑖𝑛𝑔 𝑡ℎ𝑒 𝑝𝑒𝑟𝑖𝑜𝑑 360/12/52
Inventory Conversion Period = 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑅𝑎𝑡𝑖𝑜
Flux Method I =
𝑵𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝐒𝐞𝐩𝐞𝐫𝐚𝐭𝐢𝐨𝐧𝐬 +𝑵𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝑹𝐞𝐩𝐥𝐚𝐜𝐞𝐦𝐞𝐧𝐭
× 100
𝑨𝒗𝒈.𝑵𝒐.𝒐𝒇 𝑬𝒎𝒑𝒍𝒐𝒚𝒆𝒔𝒔 𝒐𝒏 𝑹𝒐𝒍𝒍 𝒅𝒖𝒓𝒊𝒏𝒈 𝒕𝒉𝒆 𝒑𝒆𝒓𝒊𝒐𝒅
Flux Method II = COMPREHENSIVE COST SHEET
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 Seperations +𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐴𝑐𝑐𝑒𝑠𝑠𝑖𝑜𝑛𝑠 Opening Stock of Raw Materials xxx
× 100
𝐴𝑣𝑔.𝑁𝑜.𝑜𝑓 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑠𝑠 𝑜𝑛 𝑅𝑜𝑙𝑙 𝑑𝑢𝑟𝑖𝑛𝑔 𝑡ℎ𝑒 𝑝𝑒𝑟𝑖𝑜𝑑 Add: Purchases of Raw Materials (including xxx
EQUIVALENT ANNUAL LABOUR TURNOVER Carriage Inwards, Transit Insurance etc.)
Contribution p. u of
Equivalent Annual Labour Turnover = Less: Closing Stock of Raw Materials (xx)
Material
𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑒 𝑓𝑜𝑟 𝑡ℎ𝑒 𝑝𝑒𝑟𝑖𝑜𝑑 Raw Materials Consumed xxx
× 365
𝑁𝑜. 𝑜𝑓 𝑑𝑎𝑦𝑠 𝑖𝑛 𝑡ℎ𝑒 𝑝𝑒𝑟𝑖𝑜𝑑 Add: Direct/Productive Labour xxx
Add: Direct/Chargeable Expenses xxx
Profit

sales
Suppy Hour
Prime Cost xxx
Key Factor

Machine Capacity is in
Short Suppy
Sales Quantity is in Short
Add:Factory/Works/Manufacturing/Production xxx
Contribution per Machine Selling & distribution overheads Overheads
Hour Gross Factory Cost/ Gross Works Cost xxx
Add: Opening Stock of work in Progress xxx
Administration Overheads Less: Closing Stock of work in Progress (xx)
Contribution Per Unit

Cost of production
Supply Net Factory Cost/ Net Works Cost xxx

Cost of sales
Factory Add: Office & Administration Overheads xxx
Cost of Production xxx
Sales Value is the Limiting
P/V Ratio Overheads Add: Opening Stock of finished Goods xxx

Factory cost
Factor
Less: Closing Stock of Finished goods xxx
Direct Cost of Goods Sold xxx

Prime cost
Expenses Add: Selling and Distribution Overheads xxx
𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 Direct Cost of Sales xxx
Ranking = Add: Profits xxx
𝐾𝑒𝑦 𝐹𝑎𝑐𝑡𝑜𝑟 Labour
Direct Sales xxx
Material
INTEGRATED AND NON – INTEGRATED ACCOUNTING SYSTEM
INTEGRATED ACCOUNTING NON-INTEGRATED ACCOUNTING INTEGRATED ACCOUNTING NON-INTEGRATED ACCOUNTING
1. Materials Purchased 1. Materials Purchased on 14. Transportation of 14. Transportation of
on Credit/ for Cash: Credit/ for Cash: Incoming Material / Incoming Material /
Carriage/ Freight Carriage/ Freight
a) For Stock: a) For Stock:
Inwards: Inwards:
Stores Ledger Control A/c Dr. xxx Stores Ledger Control A/c Dr. xxx
To Sundry Creditors/Cash A/c xxx To General Ledger Adj. A/c xxx Production O/H Control A/c / Production O/H Control A/c /
Stores Ledger Control A/c Dr. xxx Stores Ledger Control A/c Dr. xxx
b) For Special Jobs: b) For Special Jobs: To Cash A/c xxx To General Ledger Adj. A/c xxx
WIP Ledger Control A/c Dr. xxx WIP Ledger Control A/c Dr. xxx
To Sundry Creditors/Cash A/c xxx To General Ledger Adj. A/c xxx 15. Labour Cost: 15. Labour Cost:
a) Total Wages & a) Total Wages & Salaries
2. Materials Issued: 2. Materials Issued: Salaries Paid Paid (including
(including Employer’s contribution
a) Direct Material c) Direct Material Employer’s to various funds)
WIP Ledger Control A/c Dr. xxx WIP Ledger Control A/c Dr. xxx contribution to Wages & Salaries
To Stores Ledger A/c xxx To Stores Ledger Adjustment A/c xxx various funds) Control A/c Dr. xxx
Wages & Salaries xxx To General Ledger xxx
b) Indirect Material d) Indirect Material Control A/c Dr. Adjustment A/c
Relevant Overhead A/c Dr. xxx Respective Overhead A/c Dr. xxx To Cash A/c/ xxx
To Stores Ledger Control A/c xxx To Stores Ledger Control A/c xxx Accrued Wages &
Salaries A/c A/c
3.
Materials Returned 3. Materials Returned to b) Allocation of Direct b) Allocation of Direct &
to Supplier Supplier: & Indirect Labour Indirect Labour Cost:
Creditors A/c Dr. xxx General Ledger Adj. A/c Dr. xxx Cost: Work-in-Progress Ledger
To Stores Ledger Control A/c xxx To Stores Ledger Control A/c xxx Work-in-Progress Control A/c (DL) Dr. xxx
4. Materials Returned 4. Materials Returned Ledger Control A/c xxx Respective Overhead
from Shop Floor: from Shop Floor: (DL) Dr. Control A/c (IL) Dr. xxx
Stores Ledger Control A/c Dr. xxx Stores Ledger Adj. A/c Dr. xxx Respective To wages & Salaries xxx
To WIP Ledger Control A/c xxx To WIP Ledger Control A/c xxx Overhead Ledger Control A/c
Control A/c (IL) Dr. xxx
To wages & Salaries xxx
Control A/c
16. Direct Expenses 16. Direct Expenses
(Paid/Accrued): (Paid/Accrued):
5.
Material transferred 5. Material transferred WIP Ledger Control A/c Dr. xxx WIP Ledger Control A/c Dr. xxx
from one job to from one job to another To Cash A/c/ Accrued xxx To General Ledger Adj. A/c xxx
another job: job: Expenses A/c
WIP of Transferee Job A/c Dr. xxx WIP of Transferee Job A/c Dr. xxx 17. Overheads Incurred 17. Overheads Incurred
To WIP of Transferor Job A/c xxx To WIP of Transferor Job A/c xxx (Paid/ Accrued): (Paid/ Accrued):
6. Sales of Material: 6. Sales of Material:
Relevant O/H Control A/c Dr. xxx Respective O/H Control A/c Dr. xxx
Cash/Debtors A/c Dr. xxx General Ledger Adj. A/c Dr. xxx To Cash A/c xxx To General Ledger Adj. A/c xxx
To Stores Ledger Control A/c xxx To Stores Ledger Control A/c xxx 18. O/H Recovered: 18. O/H Recovered:

Note: Loss on sale will be Note: Loss on sale will be debited WIP Ledger Control A/c Dr. xxx WIP Ledger Control A/c Dr. xxx
debited & profit on sale will & profit on sale will be credited to (For Works Overheads (For Works Overheads
be credited to costing profit & costing profit & Loss A/c Recovered) Recovered)
Loss A/c Finished Goods Ledger Finished Goods Ledger Control
Control A/c Dr. xxx A/c Dr. xxx
7.
Normal Loss of 7. Normal Loss of Material
(For Administration (For Administration Overheads
Material kept in kept in storeroom:
Overheads Recovered) Recovered)
storeroom:
Cost of Sales A/c Dr. xxx Cost of Sales A/c Dr. xxx
Factory O/H Control A/c Dr. xxx Factory O/H Control A/c Dr. xxx
(For Selling and Distribution (For Selling and Distribution
Or Or
Overheads Recovered) Overheads Recovered)
WIP Ledger Control A/c Dr. xxx WIP Ledger Control A/c Dr. xxx
To Relevant O/H Control A/c xxx To Respective O/H Control A/c xxx
To Stores Ledger Control A/c xxx To Stores Ledger Control A/c xxx
19. Administration 19. Administration
8. Abnormal Loss of 8. Abnormal Loss of
Overheads allocated Overheads allocated to
Materials kept in Materials kept in
to production: production:
Storeroom: Storeroom:
Costing P & L A/c Dr. xxx Costing P & L A/c Dr. xxx
To Stores Ledger Control A/c xxx To Stores Ledger Control A/c xxx
20. Sales Return: 20. Sales Return: