Wednesday, September 5, 2018

COST SHEET/ COST STATEMENT



               Exhibit: Specimen of a cost sheet




STAR MANUFACTURING CO. LTD.
COST SHEET
for the period of ...   ...   ...









Direct Materials
Direct Labor
Direct Expenses

j
PRIME COST


Add: Factory Overhead

k
WORKS COST/FACTORY COST *


Add: Opening Work in Progress (Opening WIP)


Less: Closing Work in Progress (Closing WIP)

l
COST OF GOODS MANUFACTURED


Add: Office and Administrative Overhead
(as UK rules)

m
COST OF PRODUCTION  **


 
Add: Opening Finished Goods
Less: Closing Finished Goods


n
COST OF GOODS SOLD


Add: Office and Administrative Overhead
(as USA rules)


Add: Selling and Distribution Overhead

o
TOTAL COST OF GOODS SOLD/ COST OF SALES


Add: Profit

p
SALES





Notes:
- "Direct wages + Factory overhead" is known as conversion cost.
* At this stage we normally get half done goods.

** This stage shows cost of finished goods.

Elements of cost

         Exhibit: Elements of cost
Elements of cost

·      Materials
- Direct Materials
- Indirect Materials ........>

O
V
E
R
H
E
A
D

ü For factory "factory/ production overhead'
ü For office/ administration "office/ administrative overhead"
ü For selling/ distribution "selling/ distribution overhead"

·      Labor
- Direct Labor
- Indirect Labor ..............>
·      Other Expenses
- Direct Expenses
- Indirect Expenses .....>