Cost Sheet123

Cost sheet  Mahesh gowda

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What is Cost sheet  The purpose of cost sheet is to determine selling   price per unit (S.P.P.U). (S.P.P .U). At the beginning of the   year. Hence who take all the cost to find cost of   sales and arrive at cost per unit, to that we add    profit margin and can get (S.P.P.U). Thus  Cost price + profit = selling price. OR  cost pri price ce ² loss = selling selling pri price. ce.

Types of cost 

Direct cost

Indirect cost

Direct Raw material consume

Factory overheads

Direct labour

 Administration overheads

Direct expness

Selling and distribution overheads

  I. Direct Direct

cost 

cost is an cost c ost related to direct production

activity. Generally

direct cost come in to picture in case of manufacturing of  manufacturing activity . It

is also known as prime cost

It involves 3 things 1. Direct raw martial consume. 2. Direct labour. 3. Direct expness.

1.

Direct

Raw material consume

This

is also known as basic raw material input or input material Raw

material without which the production activity cannot be stored. This

raw material is required req uired to every manufacturer in case of production activity. (making activity)

For example:

 Wood

in case of furniture of  furniture.. of cloths  Cotton in case of cloths of shoes.  Leather in case of shoes.  jewellary .  Gold in case of  jewellary   Steel in case of  whistles.  whistles.  Paper in case of note of note book .  Plastic in case of pen. of pen. of car.  Fuel in case of car. Continue

Direct Raw material consume

+ + -

Openi Ope ning ng stock of raw materia iall. Purrch Pu chas asee of raw mat ateeri ria al. Purcha hasse return of raw material. Buying expenses (inw nwa ard expens nsees) related to raw  material. Closin ing g stock or raw materia iall. =Direct Raw material consume

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 I nward nward

Ex  pness/Buying Ex  pness

Custom duty  Import duty  Dock

charges

Clearing charges Octori duty  Unloading charges Buying expness/Inward expness

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Primary packing  All

the expness which are incurred to save the product (protect and preserve the product in the some conditions example: For example:

jute bag used used to protec protectt wheat, wheat, rice etc in the transport or in case of ration. Note:

Primary packing can be taken either in raw  material consumed or factory overheads.

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 2.Direct labour  It is also known

as direct wages/productive labour /productive wages It

is a remuneration paid to the workers for productive activity directly related to the production. For example:

any work or any manufacturing will stop in the worker goes for strike or lack outs. It

is part of direct of direct cost. cost.

 3.Direct ex  pness Direct

expness is a part of direct of  direct cost. cost.

Direct

expness are also known as chargeable expness. expness.

Direct

expness are the expenses incurred in the manufacturing process to meet the specific requirement of specific customer. The

product has to be carried on as per the specification given by the special customers.  The

manufacturer has to incurred addition expness regard labour and material to meet the specific requirement.

 II.I ndirect ndirect

cost 

Indirect

cost is an cost which is incurred and is not directly related to the production activity. Indirect

cost are also known as overhead/cost

 burden Indirect cost includes, a)Factory a) Factory overheads.  b) Administration overheads. c) Selling and distribution overheads.

a)  Factor  a) Factor y overheads. 

Supervisor salary



Machinery upkeep



Indirect wages



Oil/ grease/ coal/ crude oil.



Indirect labour 



Depreciation on factory assets



Unproductive wages





Unproductive labour 

Depreciation on plant and machinery



Factory manager salary



Manufacturing expness



Worker manger salary



Production expenses



Salary of watchman



Power / fuel/ motive power 



Indirect material



Consumables



Indirect expness



Factory cleaning



Factory insurance



Excise duty



Repairs and maintenance of  machinery



Research and laboratory expness



Employees state insurance corporation. Continue



Factory lighting and heating

Factory expness are expness which are

incurred indirectly to help the production inside the factory. Factory overheads is generally calculated as

a percentage of direct wages.

 Administration overheads  Office

overheads

 Office

on cost

 General 

expenses

 Depreciation on office

 building  Depreciation on office

computer 

Legal expenses

 Audit

charges/ bank charges

 Salary

on staff 

 Administration manager 

 Rent

and rates of offices

 Estimation expenses  Stationary  Postage

salary  Director

fees / remuneration



 Printing

and stationary

 General

and consumables

/ fax / telex

office upkeep salary

office manager  Continue

This

are amount of expenditure incurred for  managing and controlling business. It

is being calculated as percentage of factory expenses cost. For example: Factory cost 5000  Administration overheads 25% 25%on on factory cost.  Administration overheads=5000*25 overheads= 5000*25 100  Administration overheads=1250 overheads= 1250

c)Selling and distribution ex  penses  Selling

cost  Selling burden/ overheads  Sales promotion expenses  Advertisement  Depreciation on delivery vans/vehicles  Secondary packing  Packing  Packing material  Carriage/ freight outward  Commission on sale  Salary¶s to sales staff 

 Rent/repairs/lighting/deprecia

tion of show room  Depreciation of warehouse  Sales of sales office  Travelers salary  Traveling and conveyance  Loading expenses  Upkeep of delivery van  Sales manager salary  Donation of goods  Discount allowed  Rent of warehouse

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These

are the expenses which are incurred to induce the customer to buy our product and making product available to the customer. These

are calculated at time as a percentage of sales an as a percentage of cost of sales.  Any

expenses related to warehouse and showroom  will come in the sales and distribution expenses.

For example: Sales is 5000 Sales overheads 25% 25%on on factory cost. Sales overheads=5000*25 overheads=5000*25 100 Sales overheads=1250 overheads=1250

urel y finance ex  penses  P urel   Cash discount  Bad debts  Bad debts written off   Income tax/wealth tax  Interest on capital  Donation/charges  Fire/penalties  Bank interest Interest on

borrowing/debenture/Interest borrowing/debenture/Interest on capital loan taken Continue

ritten  W ritten

off 

Good will written off  Preliminary expenses written off  Underwrite Underwriters rs expenses written

off  Miscellaneou Miscellaneouss expenses written off 

Dividends Interim dividend 

proposed dividend

Equity dividend

Transfer Transfer

to general reserve

Transfer to sinking funds Transfer to capital reserve

Loses Losses

on scrap of plant and machinery 

Loses on sales of fixed fi xed assets

urel y finance  I ncome ncome  P urel  Profit on sales of fixed assets  Profit on sales of investment  Dividend received  Rent received  Interest on investment (Bank fund, Govt  bonds, RBI)  Interest on loan given 



Share transfer fees

 All

the above expenses and income are exhaustive list which are to be considered considere d only for accounting purposes. For

costing analyses such above expenses and income as to be excluded exclude d that means it would be forming a part of factory costing record Factory

overheads non administrative factor nor selling and distribution expenses.