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Cost 2

This document outlines the steps to calculate the cost of goods sold for a manufacturing company. It includes calculating direct material costs, direct wages, prime costs, factory overheads, works cost, administrative overheads, cost of production, cost of goods sold, selling and distribution overheads, and total cost. All relevant expenses are accounted for and inventory values are adjusted to determine the final costs.

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Avedhesh Tiwari
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30 views

Cost 2

This document outlines the steps to calculate the cost of goods sold for a manufacturing company. It includes calculating direct material costs, direct wages, prime costs, factory overheads, works cost, administrative overheads, cost of production, cost of goods sold, selling and distribution overheads, and total cost. All relevant expenses are accounted for and inventory values are adjusted to determine the final costs.

Uploaded by

Avedhesh Tiwari
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Units Produced : Units Sold : Direct Materials Opening Stock Add : Purchases Add :Purchase Expenses (like Octroi,

Carriage Inward) Less : Scarp of Raw materials Less : Closing Stock Direct Materials

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Total Cost

Cost Per Unit

Total Direct Material Consumed Direct Wages (Productive Wages) Direct Expenses PRIME COST Add: Factory Overheads Factory Expenses Indirect Wages Factory Rent Any Factory Related Expenses Depreciation Factory Assets Drawing Office Salary Less: Sale of Factory Scrap Add: Opening Work-in-Progress Less: Closing Work-in-Progress Total Factory Overheads WORKS COST Add: Office & Administrative Overheads Rent, Rates, Salaries etc.. Any other related expenses Depreciation on Office Assets COST OF PRODUCTION OF UNITS PRODUCED Add :Opening Stock of Finished Goods Less :Closing Stock of Finished Goods
0 0

COST OF PRODUCTION OF UNITS SOLD Add: Selling & Distribution Overheads Showroom Rent Expenses Salesman's Salaries Traveling & Conveyance Warehouse Charges Carriage Outward Packing, Commission Advertisement and Samples COST OF SALE OR TOTAL COST Add: Profit -- SALES -This will calculate the values upto Total Cost. This will calculate all the values. Use this button when profit is not given.

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