PRESENTED BY:

• SUGAM MAGAR
• DINESH BASNET
• SAROJ SHRESTHA
• NYIMA LAMA
• SUMAN KARKI
 CONTENTS
• Concept of cost sheet

• Objectives of cost sheet

• Format of cost sheet

• Summary
CONCEPT OF COST SHEET
• A cost sheet is a statement that shows the various components
of total cost for a product and shows previous data for
comparisons. 

• In simple words, it is a document prepared for determining,

analyzing and reducing cost and finally determining selling price
of certain amount of produced goods.
OBJECTIVES OF COST SHEET
• Determining cost of produced goods.

• Analyzing and controlling cost of goods.

• Helps in comparison of total cost.

• Helpful for making future plans and policies.

• Helps to keep record of individual overhead.

Detail Format of Cost Sheet
Cost Sheet
For …. units

Particular Amount
Opening stock of raw materials XX
Add: Purchases of raw materials XX
Carriage on purchase XX
Import duty XX
Custom duty XX
Less: Closing stock of raw materials (XX)
Cost of raw materials used XXXX
Direct materials XX
Directs Wages XX
Prime cost XXXX
Add: Factory overhead
Indirect materials XX
Indirect labor XX
Particular Amount
Light XX
Coal and coke XX
Fuel XX
Manufacturing expenses XX
Factory cost XX
Depreciation on machinery XX
Less: Sales of scrap XX
Factory cost incurred XXXX
Add: Opening stock of work in progress XX
Less: Closing stock of work in progress XX
Factory cost XXXX
Add: Office and administrative overheads
staff’s salary XX
Stationary XX
Office rent XX
Bank charge XX
Office expenses XX
Depreciation on furniture XX
Cost of Production XXXX
Particular Amount

Add: Opening stock of finished goods(Units *CPU) XX

Less: Closing stock of Finished Goods(Units*CPU) XX
Cost of good sold XXXX
Add: Selling and distribution overheads
Advertisement XX
Carriage outward XX
Depreciation of delivery van XX
Export duty XX
Bad debts XX
Selling expenses(Unit sold*Rate) XX
Cost of sales XXXX
Add/Less: Profit/Less XX / (XX)
Selling price XXXX
Working Notes
1. Cost per unit = Cost of Production
Production Units

2. Units sold = Opening stock units of finished goods + Production units – Closing
stock of finished goods

3. Amount of profit on sales = Total Cost × Profit%

(100-Profit)%
4. Amount of profit on cost = Total Cost × Profit%
100%
SUMMARY
• A cost sheet is a statement prepared to calculate cost of produced goods and to determine selling
price.

• Its primary function is to determine and reduce cost of goods produced.

• Its determines various overheads.

• It helps to determine the factory cost, cost of production, total cost and selling price of produced
goods