Sample Cost Accounting of Tata Steel

Topics: Costs, Variable cost, Cost Pages: 5 (612 words) Published: July 4, 2013
Meaning of cost

‘COST’ represents a sacrifice of values, a foregoing or a release of something of value. It is the price of economic resources used as a result of producing or doing the thing costed. It is the amount of expenditure incurred on a given thing.

Cost has been defined as the amount measured in money or cash expended or other property transferred, capital stock issued, services performed or a liability incurred in consideration of goods or services received or to be received. CLASSIFICATION OF COST

Cost classification is the process of grouping costs according to their common features. Costs are to be classified in such a manner that they are identified with cost center or cost unit.

Fixed Cost

Variable Cost

Semi-variable Cost

PROFILE OF TATA STEEL

founder; Jamsetji Nusserwanji Tata., that on 27th February, 1907. Tata Steel Limited -Bombay House, MUMBAI.
Backed by 100 glorious years of experience in steel making.
It is listed in Fortune 500 Company.
World ranking stands 5th position.
Turnover in FY 11 rose 17.5% to 29,396 crores (US$6.59 billion) from 25,022 crores (US$5.61 billion) in FY 10 Current chairperson of TATA GROUP is Mr. CYRUS MISTRY.

VISION OF THE COMPANY

PLANT LOCATION & LAYOUT

Located at Jamshedpur

Easy availability of resources
Water
Iron
coal
Other essential resources.

Tata Steel - Product Profile

Steel
Hot Rolled Coils and Sheets
Cold Rolled & Galvanised Coils & Sheets
Wire Rod Coils
Rebar's and Light Structural's
Forging Quality Steels
Semis
Tubes
Precision tubes
Black/Galvanised tubes
Bearings
Ball bearings

Cost sheet
COST SHEET – FORMAT
 
ParticularsAmountAmount
Opening Stock of Raw Material ***
Add: Purchase of Raw materials ***
Add: Purchase Expenses ***

Less: Closing stock of Raw Materials ***
Raw Materials Consumed ***
Direct Wages (Labor) ***
Direct Charges ***
Prime cost (1) ***
Add :- Factory Over Heads:
Factory Rent ***
Factory Power ***
Indirect Material ***
Indirect Wages ***
Supervisor Salary ***
Drawing Office Salary ***
Factory Insurance ***
Factory Asset Depreciation ***
Works cost Incurred ***
Cost sheet
ParticularsAmountAmount
Add: Opening Stock of WIP ***
Less: Closing Stock of WIP ***

Works cost (2) ***
Add:- Administration Over Heads:-
Office Rent ***
Asset Depreciation ***
General Charges ***
Audit Fees ***
Bank Charges ***
Counting house Salary ***
Other Office Expenses ***

Cost of Production (3) ***
Add: Opening stock of Finished Goods ***
Less: Closing stock of Finished Goods ***
Cost of Goods Sold***

Cost sheet
ParticularsAmountAmount
Add:- Selling and Distribution OH:-
Sales man Commission ***
Sales man salary ***
Traveling Expenses ***
Advertisement ***
Delivery man expenses ***
Sales Tax ***
Bad Debts ***
Cost of Sales (5) ***
Profit (balancing figure) ***
Sales ***

Cost sheet of Tata steel
Cost Sheet for Tata Motors for the year 2011-2012:

Rs./ Crores
Direct Materials
(a) Spare parts & accessories for sale 253.55
(b) Bodies & trailers for mounting on chassis 214.43 467.98 Direct Labour 323.00
Direct Expense 2270.30
Prime Cost 3061.28
Factory Overheads
Consumption of Raw Materials 7873.41
Processing Charges 388.59
Stores, spare parts & tools consumed 236.73
Freight, transportation, port charges 185.47...
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