RAJA GARMENTS FACTORY COST OF GOODS SOLD STATEMENT

For the year ended on - - (i) Direct Material Cost Rs. Opening balance Purchases (-) Less Returns +Net Purchases Material Available for Use (-) Ending Inventory Direct Material Consumed xxx Direct Labour Costs xxx Factory Overhead Costs Depreciation of Plant Tools Expenses Fire Insurance Indirect Material used Total F.O.H. Costs Total Manufacturing Costs xxx + Opening W.I.P. Total Cost charged to production xxx - Ending W.I.P. xxx Costs of Goods Manufactured + Opening Finished Goods Total Goods available for sale - Ending Finished Goods COST OF GODDS SOLD Rs. xxx xxx - xxx + xxx (-) xxx Rs.

LCA

xxx

(ii) (iii)

xxx

xxx xxx + xxx + xxx xxx

xxx

xxx xxx xxx

xxx

RAJA GARMENTS FACTORY INCOME STATEMENT

For the year ended - - Rs. xxx xxx Rs. xxx (-)xxx xxx

Sales for the year Less: Sales Returns Net Sales Less: Cost of Goods Sold Gross Profit

Less: Operative Expenses General Expenses Administrative Selling Expenses Total Operative Expenses Net Income

LCA
xxx xxx xxx xxx xxx

Definitions of Expenses:
Expenses are costs incurred by the Agency in the process of earning revenue, ie. Producing outputs. Generally expenses are measured by the costs of assets consumed or services used during an accounting period. Expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) Expense - a detriment or sacrifice; "at the expense of" Expense - reduce the estimated value of something; "For tax purposes you can write off the laser printer" Funds spent for ongoing operations.

Definitions of Revenues:
Revenues is the total amount of money a company or business makes off of it's goods and services during a set amount of time. Increases in owner's equity as a result of providing of services or selling products to customers. Revenues include all net sales of the company plus any other revenues associated with the main operations of the business (or those labeled as operating revenues). It does not include dividends, interest income or non-operating income.

OPERATING EXPENSES
Operating expense in simple words refers to those expenses which are incurred by a company in order to run the normal operations of the business of the company. An operating expense, operating expenditure, operational expense, operational expenditure or OPEX is an ongoing cost for running a product, business, or system. Its counterpart, a capital expenditure (CAPEX), is the cost of developing or providing non-consumable parts for the product or system. For example, the purchase of a photocopier involves CAPEX, and the annual paper, toner, power and maintenance cost represents OPEX. For larger systems like businesses, OPEX may also include the cost of workers and facility expenses such as rent and utilities. In business, an operating expense is a day-to-day expense such as sales and administration, or research & development, as opposed to production, costs, and pricing. In short, this is the money the business spends in order to turn inventory into throughput. Operating expenses also include depreciation of plants and machinery which are used in the production process.

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On an income statement, "operating expenses" is the sum of a business's operating expenses for a period of time, such as a month or year. In throughput accounting, the cost accounting aspect of the theory of constraints (TOC), operating expense is the money spent turning inventory into throughput. In TOC, operating expense is limited to costs that vary strictly with the quantity produced, like raw materials and purchased components. Everything else is a fixed cost, including labour (unless there is a regular and significant chance that workers will not work a full-time week when they report on its first day). In a real estate context, operating expenses include costs associated with the operation and maintenance of an income-producing property.

Operating expenses include:

1) 6) Salaries & Wages Taxes 2) Advertising 7) Leasing Fees 3) Office expenses 8) Rent 4) Office supplies 9) Management Fees 5) Insurance

10) Utilities, such as telephone 11) Maintenance and Repairs, such as snow removal, trash removal, janitorial service, pest control, and lawn care. etc. Apart from above operating expenses there can be other expenses also added to the above list depending on the nature of industry in which company operates.

Capital expenditures
Capital expenditures (CAPEX or capex) are expenditures creating future benefits. A capital expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing fixed asset with a useful life that extends beyond the taxable year. Capex are used by a company to acquire or upgrade physical assets such as equipment, property, or industrial buildings. In accounting, a capital expenditure is added to an asset account ("capitalized"), thus increasing the asset's basis (the cost or value of an asset as adjusted for tax purposes). Capex is commonly found on the cash flow statement as "Investment in Plant Property and Equipment" or something similar in the Investing subsection. Included in capital expenditures are amounts spent on: 1. 2. 3. 4. 5. Acquiring fixed assets Fixing problems with an asset that existed prior to acquisition if it results in a superior fixture Preparing an asset to be used in business Restoring property or adapting it to a new or different use Starting a new business