Chapter 4

Cost Sheet
 Content: Cost Sheet
Components
◦ Prime Cost
◦ Works Cost
◦ Cost of Production
◦ Total Cost

Format
Example
Types
Advantages
Conclusion
Definition:
A cost sheet is a statement which represents the various costs incurred at different stages of
business operations, in a tabular format. It determines the total cost or expenditure made by
the organization, along with the cost incurred on each unit of a product or service in a
particular period.
Objectives of cost sheet
To know the total cost of production
To know the cost of production per unit
To Control the cost of production
To fix up the selling price of the product
To fulfill the tender price
For comparative study with past standards
Helpful in formulating production policy
Components of Cost
 Steps For Preparation Of Cost Sheet

Step I : Prime Cost = Direct Material + Direct Labour + Direct Expenses.

Step II :Works Cost = Prime Cost + Factory/Indirect Expenses.
Step III : Cost of Production = Works Cost + Office and Administration
Expenses.
Step IV : Total Cost\cost of goods sold = Cost of Production + Selling
and Distribution Expensess
sales = total cost + profit
Direct Raw Material Used
Direct Raw Material used = opening raw material + purchasing raw material – closing raw

material
 Format of cost sheet
Particulars Total cost Per unit cost
Opening Stock of Raw Material

Add Purchase of Raw Materials

Add Carriage Inward
Less Closing stock of raw
Material
Raw Material Consumed ….

Add Direct Wages/Labour

Add Other Chargeable
Expenses/Direct EXp
Prime Cost …. ….
Prime Cost …. ….

Add Work Oncost/Factory
Overheads

Indirect Material
Indirect Labour
Heat, Light
Insurance FOH
Factory Lighting
Oil &Water Charges

Add Opening Work-in-progress ….

Less Closing Work-in-progress …. ….

Work Cost ….
Work Cost ….

Add Office & Administrative Expenses

Salary of Office Staff

Depreciation or of Office Building
Lighting of Office
Printing and Stationery
Phone, Photostate, Fax 
Internet charges

Cost of Production …. ….

Add Selling and Distribution

Expenses ….
Add Opening Stock of Finished Goods

Less Closing Stock of Finished Goods (….)

Cost of Goods Sold

Add profit
sales
 N ame of C ompany
Cost of Goods Sol d Statem ent
For the year Ended ………………………..
Opening Inventory *****
Purchases *****
Purchase Return/Discount/Allowances (*****)
Net Purchases ****
Mate rial Available for us e ******
Direct Expenses *****
Closing Inventory (*****)
Dire ct Mate rial use d *****
Direct Labor ******
Prime Cost *****
Factory Overhead Cost *****
Total Factory Cos t *****
Opening Work in Process ****
Cost of Goods to be Manufacture d ****
Closing Work in Process (****)
Cost of Goods Manufacture d ****
Opening Finished Goods ****
Cost of Goods to be Sold ****
Closing Finished Goods (****)
Cost of Goods Sold ******
‫⏰ ساعت یعنی تیک تاک‪...‬‬

‫د‬
‫آ‬‫تم‬
‫س‬‫هد‬
‫تب‬ ‫ص‬
‫ی‬‫ر‬
‫عف‬‫ک ین‬
‫ی‬‫✅ت‬
‫✅ تاک یعنی فرصت از‬
‫دست رفت‬

‫✨ موفق ها قدر تک تک تیک هارا می دانند‬

‫👈 افسرده ها تاک های گذشتهرا می شمارند‪.‬‬

‫💎 قدر لحظات بدانید‪ ،...‬استفاده اعظمی کنید‬

‫بـــــرــــ لـــبــــــــ جـــــوــــــیــــــــــــــ نــــشــــیـــنــ وــــــ‬

‫گذر عمر ببین‬
‫کاین اشارت زجهان‬
‫گذران ما را بس‬
‫حافظ‬
 ‫َسیر در هستی‬

‫چرا وقتى به دامن طبيعت مى رويم احساس آرامش مى كنيم ؟‬

‫طبيعى خودرا ايفا‬
‫ِ‬ ‫براى اينكه هر يك از موجودات طبيعت ‪ ،‬نقش فطرى و‬
‫مى كنند ‪ ،‬و نقابى به چهره ندارند ‪:‬‬
‫دل صخره ها بيرون مى تراود ‪ ،‬درختانى كه‬ ‫چشمه اى كه از ِ‬
‫به سوى آسمان ‪ ،‬دست افراشته اند ‪ ،‬آبشارى كه با آوايى دلنشين از بلندا به‬
‫نشيب مى ريزد ‪ ،‬آهويى كه در بيشهزاران و دامنهء كوهساران ‪ ،‬آزاد و رها مى‬
‫خرامد و مى جهد ‪ ،‬همه و همه ‪ ،‬جان مارا سرشاـر از نشاط و حيات مى كند‪.‬‬
‫طبيعى بودن و بى نقاـب زيستن ‪ ،‬سرچشمهء زيبايى ها و آرامش روح است ‪.‬‬