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Faculty – Dr. Satish Naringrekar
TYBCOM SEM V COSTING Faculty – Dr. Satish Naringrekar
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COST CLASSIFICATION
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COMPOSITION OF SELLING PRICE
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COST SHEET FORMAT
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Less: Closing stock of Raw materials
Materials returned to suppliers DIRECT WAGES: Wages to Productive Workers Direct expenses: Royalty Maintenance cost of special Mac on Production Cost of Patents Cost of Drawings, designs, layouts,etc PRIME COST Factory Overheads: Factory Rent, Rate, Insurance Factory lighting Factory Supervision Motive Power
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Fuels & Oil Grease, water, etc Steam Drawings Office Salaries Depreciation of Plant & machinery Technical Directors Fees Haulage Machinery Loose Tools w/off Machinery handling charges Factory stationery Works managers salary Works Clerical staff salary Supervisors Salary Store Keepers Salary
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Less: Scrap Sales Add: Opening work in Progress Less: Closing work in progress Factory Cost Office & Administrations Overheads: Office Rent, rates & taxes AC Charges Staff salaries Office lighting Office Cleaning Printing & Stationery Directors fees Sundry expenses Legal expenses
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Cost of Production Add: opening stock of Finished goods Less: Closing stock of Finished Goods Cost of Finished Goods sold Selling & Distribution overheads: Advertisement Travelling expenses Commission on sales Sales salaries Discount allowed
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Exhibition and fairs Entertainment Expenses of Sales staff Baddebts Sample & Gifts After Sales Demonstration Expenses Loading charges Carriage on sales Rent on warehouse Total cost of sales Profit Sales
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COST SHEET (Alternative Format)
Direct Cost Direct Material consumed Direct or productive wages Direct Expenses Prime Cost Add: Factory overheads Works of Factory cost Add: Office & Admin overheads Cost of Production Add: opening stock of finished goods Less: Closing stock of Finished goods Cost of Goods Sold Add: Selling & Distribution overheads Cost of Sales Add: Profit Sales
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Non Cost Sheet Items
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Problem: From the following information, Prepare a cost sheet
Rs. Stock of Raw Materials on 1st Jan 25,000 Stock of Raw materials on 31st Jan 26,200 Purchase of Raw material 21,900 Carriage on Purchases 1,100 Sales of Finished goods 72,300 Direct wages 17,200 Non-productive wages 800 Direct Expenses 1,200 Factory Overheads 8,300 Administrative overheads 3,200 Selling Overheads 4,200
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THANK YOU
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