Cost Sheet

In the books of a Company
Cost Sheet for the period ended……..
Units Produced…..
Name of the product unit sold….

Particulars
Total cost Rs.
Unit Cost Rs.

Opening stock raw materials

Add
Purchases of Raw Materials

Add:
Expenses on Purchases of Raw Materials (octroi & duty)

Less:
Closing stock of raw materials

Less:
Sale of scrap or defectives of raw materials

=
Cost of materials consumed

Add:
Productive Labour

Add:
Outstanding wages

Add:
Direct Expenses( architect’s fees)

=
Prime cost

Add:
Factory overheads

Add:
Opening stock of Work-in-progress

Less:
Closing stock of Work-in-progress

Less:
Sale of scrap or defectives of Work-in-progress

=
Factory cost

Add:
Office overheads

=
Cost of Production

Add:
Opening Stock of Finished Goods

Less:
Closing Stock of Finished Stock

=
Cost of Goods Sold

Add:
Selling & Distribution Overheads

=
Total cost

Add
Profit

Less
Loss

=
Sales

Non cost items ie. Items to be excluded from cost.
1. Financial Incomes:
Capital profits, dividend received, brokerage & commission received, share transfer fees, interest on investments, rent received , bad debts recovery, interest on loan given.
2. Financial charges capital losses, cash discount , trade discount, penalties & fines, share transfer fees paid, interest on debentures, preliminary expenses, underwriting commission, discount on issue of shares and debentures, loss on investment, capital expenses, interest on capital, salary or commission paid to partner, income tax, wealth tax, interest on debentures, reconstruction expenses, development expenses.
3. Appropriations:
Bad debts reserve, dividends paid, charitable donations, transfer to reserve, sinking fund, debenture redumption fund, machinery replacement fund, investment fluctuation fund.
4. Abnormals:
Abnormal wastage, abnormal idle time, loss by fire, loss by theft, loss of stock, insurance premium.

Q. 1) The cost accounts of A Ltd. Mumbai, for