COST SHEET

Cost sheet is a statement which is prepared periodically to provide detailed

cost of a cost Centre or cost unit.
A cost sheet not only shows the total cost but also the various components of
the total cost.
Period covered by a cost sheet may be a year, a month or a week, etc.
The format of a simple cost sheet is as follows:
COST SHEET FOR THE PERIOD .. (PRODUCTION ..UNITS)
COST SHEET

TOTAL COST COST PER UNIT

(RS.)
(RS.)

Direct material:

Opening stock of raw materials

(+) Purchase of raw Materials

(-) Closing stock of raw material

Total material Consumed

Direct labour

Direct expenses

----------

------

( A)

Prime cost

COST SHEET

(+) Factory overheads

TOTAL COST COST PER UNIT

(RS.)
(RS.)
-

---------

-------

-----

--------

( +) Opening Stock of Finished Goods

( -) Closing stock of Finished Goods

-----

------

-------

-------

(B)

Factory cost

(+) Opening stock of Work in- process

(-) Closing stock of Work- in- process
(+) Office & Administration
overheads
(c) Cost of production

(D) Cost of Goods Sold

(+) Selling and distribution overheads
/ Expenses
(E) Cost of sales
(+) Profit

COST SHEET

(F)

Sales

TOTAL COST COST PER UNIT

(RS.)
(RS.)
--------

--------

Factory overheads are otherwise known as works overheads.

Factory cost is otherwise known as works cost.
Cost of production is known as the stage of finished goods.
FACTORY OVERHEADS:
Indirect materials

Loose Tools

Power & Fuel

Indirect wages

Lighting and heating (Factory) Lubricants

Rent and rates (factory)

Repairs & maintenance

Works stationary

Welfare service expenses

Insurance Stock and

finished goods

Work Managers salary

Depreciation on
factory plant
Insurance Fixed
assets
Cost of Research

OFFICE AND ADMINISTRATIVE OVERHEADS:

Rent and rates (Office)

Salaries (office)

Lighting and heating

Telephone and postage

Insurance of office
building
Printing and stationary

Depreciation on
furniture and fixtures
Bank charges

Legal expenses

Audit fees

SELLING AND DISTRIBUTION OVERHEADS:

Showroom rent and
rates
Travelling expenses of
salesman
Sample and other free
gifts

Salesmans salary

Commission

Advertisement

Carriage outwards

Bad Debts

ITEMS NOT INCLUDED IN COST SHEET

Income tax
Dividends to shareholders
Premium on redemption of shares and
debentures
Capital losses i.e., Loss out of sales
Interest on loan or debentures or bank
interest
Donations
Capital expenditures
Discounts on shares and debentures
All personal expenses of owner

Commission to managing directors

Underwriting commissions
Writing off goodwill, preliminary
expenses
Reserve for bad debts
Transfer to all reserves or appropriation
of profits
Share premium
Interest on capital
Drawings of proprietors