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cost sheet
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COST SHEETOBJECTIVES
State the meaning and type of cost sheet
Explain components of cost sheet
Prepare the cost sheet as per format
COST SHEET: MEANING AND IMPORTANCEDEFINITIONCost sheet is a statement which shows various components of total cost of a productUSESClassification and anlaysis of cost components of a productComparison with previous dataDisplay of unit cost with total costSelling point finalisation with the help of cost sheet
BASIS OF OF SHEET1. HISTORIC COST2. ESTIMATED COSTHISTORIC COSTHistoric cost sheet is prepare on the basis of actual cost incurredESTIMATED COSTEstimated cost sheet is prepared before the commencement of production on the basis of estimated costIt is used in quoting tender price of a job or a contract
Importance of cost sheetCost ascertainmentFixation of selling priceHelp in cost controlFaciltates management decision:Whether to produce or buy a componentWhat prices to quote in the tenderWhether to retain or replace an existing machine
COMPONENTS OF TOTAL COSTPRIME COSTDirect material+Direct wages+Direct Expenses
Direct MaterialMaterial consumed=material purchased+opening stock of material-closing stock of material
PRIME COST
FACTORY COST/WORKS COST/PRODUCTION COSTFACTORY COST= Prime cost+Factory OverheadsFactory Overheads consist of cost of indirect material, indirect wages and indirect expenses incurred in the factory
Factory Cost is also known as Works Cost or Production Cost or manufacturing cost
FACTORY COST
WORK- IN -PROGRESSUnits remaining to be completed at the end of a period are called work in progressAdjustment for WIP to be made to arrive at net Factory cost/Works costNormally the cost of incomplete units include direct material, direct labour, direct expenses and average factory overheads
WORK-IN-PROGRESS
TOTAL COST AND COST SHEETTotal cost of production=Factory Cost+Office and administration overheads
COST OF GOOD SOLDCost of Goods Sold=Total cost of Production+Opening stock of Finished Goods-Closing Stock of Finished Goods
TOTAL COST SHEET
TOTAL COST-COST OF SALESTOTAL COST=Cost of Goods sold+Selling and Distribution Overheads
SALES= Total Cost+ Profit
COST OF GOODS SOLD
COST OF SALESTOTAL COST=Cost of Goods Sold+Selling and Distribution Overheads
SALES= Total Cost+Profit
TOTAL COST
SALES
SPECIMEN COST SHEET
SPECIMENT COST SHEET
COST SHEET
COST SHEET