COST SHEET

PARTICULARS DETAILS TOTAL

RS. RS.
Opening stock of raw materials
(+) purchase
Carriage inward
Octroi and custom duty
(-)closing stock of materials
(-) loss of materials by fire(abnormal loss)
---------------------------
Cost of material consumed
Direct labour (productive wages)
Direct expenses(chargeable expenses)

PRIME COST
WORKS/ FACTORY OVERHEADS
Indirect materials
Indirect wages
Rent and rates (factory)
Lighting and heating
Gas and water supply
Motive power
Loose tools written off
Lubricants, oil
Power and fuel
Haulage(cost of internal transport)
Repairs and maintenance
Cleaning
Depreciation of factory plant/machinery
Property tax on factory building
Works stationery
Insurance-(fixed assets ,Stock and finished goods
,plant)
Estimating expenses
Drawing office expenses(copies of drawing and blue
prints)
Welfare service expenses
Canteen expenses
Bonus to workers, overtime wages, leave wages
Technical director’s fees
Work manager’s salary
Works transport, telephone expenses
(+) opening stock of work-in –progress
(-)closing stock of work in progress
(-)sale of scrap/waste

WORKS COST
OFFICE AND ADMINISTRATIVE OVERHEADS
Salaries
Telephone and postage
Printing and stationery
Legal expenses
Audit fees
Bank charges
Lighting and heating(office)
Rent and rates
Public relation expenses
Establishment expenses
Director’s fees
Director’s travelling expenses
Subscription to trade journals
Depreciation of office furniture/ equipments and
buildings
Insurance and general expenses
Consultants fees
Bonus to staff
Contribution to provident funds
Counting house salary

COST OF PRODUCTION
(+)opening stock of finished goods
(-)closing stock of finished goods

COST OF GOODS SOLD

SELLING AND DISTRIBUTION OVERHEADS
Showroom rent and rates
Salesmen salaries
Commission(sales)
Travelling expenses of salesmen
Sales printing and stationery
Advertising
Director in charge(sales)
Postage
Depreciation and expenses on delivery vans
Debt collection expenses
Bad debts
Carriage/ freight outwards
Rent of warehouse
Samples and other free gifts
Cost of catalogues
Cost tenders
Branch office expenses
Packing expenses
Insurance of showroom
Free repairs and service
Market research

COST OF SALES
ADD(DEDUCT) NET PROFIT(LOSS)

SALES
NON COST ITEMS - Income Tax, Dividend, Debenture Interest, Transfer To Sinking Fund For Machinery, Goodwill
Written Off, Payment Of Sales Tax, Cash Discount, Interest Paid, Preliminary Expenses Written Off, Provision For
Taxation, Provision For Bad Debts, Transfer To Reserve , Donation, Profit Or Loss On Assets, Interest On Capital,
Brokerage etc.
Normal loss of material is not taken into account
Materials for primary packing – factory expenses
Factory overheads are recovered as percentage of direct labour
Administration and sales overhead are recovered as percentage of works cost