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.