Cost Sheet Format Particulars Opening Stock Of Raw Materials Add: Purchase Of Raw Materials Purchase Expenses Less

: Closing Stock Of Raw Materials Defective Materials Returned I. Raw material Consumed II. Add: Direct Labor Factory Wages, Productive Wages Less: Abnormal Idle Time III. Add: Direct Expenses Excise Duty Royalty paid on production Basis Hire Charges on Special plant A-Prime Cost IV. Works overheads: Power Factory Supervision Stores Depreciation Factory Expenses Etc. Less : Sales of scrap Cost of Operation Add: Opening Stock of Work in Progress Less: Closing Stock Of Work in Progress B- Factory Cost or Works Cost V. Office Overheads Printing & stationery Office Salary Conveyance Electricity Bills Legal Expenses Postage etc. C. Cost Of Production Add: Opening Stock of Finished Goods Less: Closing Stock of Finished Goods D. Cost Of Goods Sold VI. Selling & Distribution Overheads Travelling Warehouse Expenses Salary of Sales Manager Commission Advertising Expenses Amt ( ) xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx Amt ( )

Delivery Charges E. Cost Of Sales Profit F. Sales

xxx xxx xxx xxx

Non Cost Items which never appearing in the Cost Sheet:

Abnormal Wastage Wages for Abnormal Idle Time Charity & Donation Capital profit & losses Penalties/fines/ Damage paid Debenture Interest Preliminary expense written off Wealth tax Share Capital Provision for income tax Partners’ Drawing & Salary Returnable packing materials Cash Discount Allowed / Received Under Writing commission w/off Loss due to natural Calamities Deferred expenses Statutory Fund Income Tax Paid

All abnormal Losses & Expenses Bonus to director Any capital expenditure Dividend or Interest received & paid Formation of Share Forfeiture of share Goodwill Written off Sales tax Interest on capital loan Loss due to fire /Strike etc. Royalties Received Share Transfer Fees Transfer fees Abnormal bad debt Purchase of Assets Sinking Fund Proprietor’s Drawing Advance Payment of income tax

Example of Cost Sheet 1. The account of Chintu Manufacturing Company for the November 2010 shows as followings: Particulars Drawing Office Salaries Counting House Salaries Carriage Out Wards Carriage On Purchase Repairs of Plant , Machine Sales Stock Of Material - 1st November - 30th November Director’s Fees Manger’s Salary (3/4 relates with Factory) General Expenses Dep on furniture Amt Rs. 6,500 12,600 4,300 7,150 4,450 4,61,100 62,800 48,000 6,000 10,000 3,400 300 Particulars Materials Purchased Travelling Expenses Traveler’s Salary Bad Debt (written off) Rent ,Rates ,Taxes & insurance - Factory - Office Productive wages Depreciation on Plant Gas & Water - Factory Office Amt Rs. 185,000 2,100 7,700 6,500 8,500 2,000 126,000 6,500 1,200 400

Prepare a statement giving the followings: a. Material consumed b. Prime cost c. Work cost d. Total cost e. Net Profit. (Mat. Consumed- 206950, Prime Cost- 3, 32,950, Factory Cost- 367,600 , Total Cost 4,15,400) 2. In the factory, two types of Radios are manufactured viz. Sony & Samsung .From the following particulars, prepare a statement showing the cost & profit per radio sold. Particulars Materials Labour Sony Rs. 27,300 15,600 Samsung Rs. 1,08,680 62,920

Work over heads is charged at 80 % on labour and office overhead is taken at 15% on work cost. The selling price of both radios is Rs. 1000. The numbers of Radios sold were Sony -78 & Samsung- 286.

3. M/s. Champak Lal Manufacturing co. Ltd. Intends to submit a tender. You are given the following particulars:

Stock of finished goods as on 31st Sec. 2009 Stock of Raw material as on 31st Dec.2009 Purchase of Raw Materials Productive wages Sales of finished goods Works Overhead Expenses Office Overhead expenses Stock of finished goods as on 31 Dec.2010 Stock of raw material as on 31Dec.2010 I) II) III) IV) From the above details prepare cost sheet. The percentage of work on cost to productive wages The percentage of office on cost to work cost

Rs. 72,800 Rs. 33,280 Rs. 7, 59,200 Rs. 5, 16,880 Rs. 15, 39,200 Rs. 1, 29,220 Rs.70, 141 Rs. 78,000 Rs.35,360

Based on the above information of percentage prepare statement showing amount of tender for manufacturing a plant ,considering the following information: a. Cost of raw material to be consumed Rs. 25,000 b. Wages to be paid Rs. 31,200 c. The company intends to earn the net profit of 20 % on selling price.

4. The followings figures have been obtained from the record of a company for the year rnded 31 December 2010. Direct Materials Direct wages Work Overheads Administrative Overheads Selling Overheads Distribution Overheads Profit Rs.120, 000 Rs.100, 000 Rs.60, 000 Rs. 67,200 Rs.44, 800 Rs.28, 000 Rs.105, 000

A work order has been executed in March 2011 and the following expenses have been incurred Direct Materials Direct Wages Rs.2000 Rs.1000

Assuming that in year 2011, the rate of works overheads has gone up by 20% .Administration & selling overheads have gone up by 12.5%, while distribution overheads have gone up by 10%. At what price should the product be sold so as to earn the same rate of profit on the selling price?