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Financial Accounting Presentation

COST SHEET

Cost: Cost means the amount of expenditure incurred on a particular thing. Costing: Costing means the process of ascertainment of costs. Cost Accounting: Cost accounting is a term broader than costing. It covers costing plus the reporting and control of costs. Thus Cost Accounting = Costing + Cost Reporting + Cost Control. Cost accounting can be defined as the technique of recording, classification, allocation, reporting and control of costs.

COST

MATERIALS

LABOUR

OTHER EXPENSES

DIRECT

INDIRECT

DIRECT

INDIRECT

DIRECT

INDIRECT

OVERHEADS (OH)

FACTORY & WORKS OH

OFFICE & ADMINISTRATION OH

SELLING & DISTRBUTION OH

Factory Overheads

The indirect expenses (overheads) incurred within the factory area Eg, Lubricants, oil, works managers salary, factory rent, lighting, etc.

Administration or Office Overheads

The indirect expenses (overheads) incurred within the administrative area Eg, Printing & stationery, accountants salary, office rent, office insurance, etc.

Selling & Distribution Overheads

The indirect expenses (overheads) incurred in relation to the sales activities or for the distribution of the product or service Eg, Packing Materials, printing & stationery, salesmans salary, advertising, showroom rent , logistics manager salary,baddebts, etc.

Raw Materials Work In Progress (WIP) Finished Goods

It is a statement which shows various

components of Total Cost of Product. It classifies and analyses the components of cost of a products.

Direct Material

Direct Labour

PRIME COST

Direct Expenses

Cost Sheet of M/s ABC Industries Ltd. for the year ending 31st March 2011
Particulars Opening stock of raw materials Add: Purchase of raw material Expenses on purchase of raw materials Less: Closing stock of raw materials Value of Raw Materials consumed Wages-Direct Other Direct changes Prime Cost Factory Overheads Indirect Wages. Rent and Rates Factory Consumption of Indirect materials Depreciation - plant and machinery Other Factory expenses Power & fuel Factory Cost Office and Administration Overheads Rents and Rates Office Depreciation Office furniture Office Salary & Expenses Managing Directors Remuneration Cost of Production Selling and Distribution Overheads Salary of Salesmen Showroom expenses Advertisement expenses Traveling expenses of salesmen Carriage and Freight outward Cost of free samples Cost of Sales Add: Profit Sales 2,000 1,000 2,000 1,100 1,000 6,000 13,100 210,800 39,200 250,000 500 100 2,500 900 2,500 6,500 197,700 10,000 5,000 500 1,500 5,700 3,500 26,200 191,200 Amount in Rs. Total in Rs. 25,000 85,000 5,000 115,000 40,000 75,000 75,000 15,000 165,000 Cost per unit in Rs.