Costing 4th semester (Method of Calculation of Cost Sheet)

                           Method of calculation 

                                         Of        

                     Statement of cost and cost sheet

Direct materials used:
Opening stock of raw materials	***
Raw materials purchased	***
(+) carries inward	***
Import duty	***
Primary packing	***
( -)  Abnormal loss	***
(-) Return to supplies or purchase discount	***
(-) closing or ending raw materials	***
Direct labor	***
Productive wages	***
Direct wages / Factory wages/ Accrued Wages	***
Direct expense /special design expense/hire of plant	***
Prime cost		***
Factory overhead /work overhead:
Indirect materials	***
Indirect labor	***
Indirect expense	***
Non productive wages	***
Factory Expense (all likes Factory)	***
Factory lighting	***
Power and fuel	***
Factory Insurance	***
Factory supervision	***
Factory stationary	***
Factory manager’s salary	***
Drawing o Factory salary	***
Chief engineers	***
Technical directory salaries	***
Factory repairs and maintenance	***
Depreciation on factory building	***
Depreciation on plant	***
Loose tools used	***
Works men compensation	***
Workers welfare expense	***
Cost of normal idle time	***
Cost of quality control	***
Oiling and clearing expense	***
Overtime premium	***
Expense of testing	***
+ beginning work in progress	***
(-)Ending work in progress	***
Factory Cost/ Work Cost		***
Office and administrative overheads:
Office salaries	***
Manager’s salaries	***
Audit fees	***
Postage and telegram	***
Printing and stationary	***
General expenses	***
Insurance of office building	***
Office electricity	***
Repairs of office assets	***
Depreciation on office assets	***
Office supplies	***
Managing director’s salaries	***
Office rent	***
Law charges	***
Opening stock of finished goods	***
(-) closing stock of finished goods	***
Cost of production of goods sold		***
Selling and distribution expense:
Sales men’s salaries	***
Salesmen’s commission	***
Traveling expense	***
Sales manager’s salaries	***
Marketing director’s salaries	***
Advertisement	***
Showroom expense	***
Bad debts	***
Packing charges	***
Sales tax	***
Insurance on finished goods	***
Depreciation on delivery van	***
Sales promotion expense	***
Cost of participation in industrial fair	***
Cost of samples	***
Running expenses of delivery van	***
Public relation expense	***
Total cost		***
Profit		***
Selling price		***