Cost Accounting Punjab Oil Mills

1. Cost Accounting
Punjab Oil Mills

2. Members
• Ihtisham Hussain
• Ali Zeb Khan
• Kashif Khan

3. Cost Accounting
• It can be defined as the process of measuring, analyzing, classification,
computing and reporting the cost profitability and performance of
operations or the subfield of accounting which relates with the costs of
material, labor, factory overhead and other costs from the point at which
expenditure is incurred or committed to the establishment of its ultimate
relationship with cost centers and cost units.

4. Material
• Direct Material: Identifiable
• Indirect Material: Not Identifiable
• Material Costing Methods
• Lifo
• Fifo
• Average Costing

5. Labor
• Direct Labor
• Indirect Labor
• Method of Wage Payment
• Peace Rate
• Differential Rate
• Hour Rate

6. Factory Overhead
• Indirect Labor
• Indirect Material
• Indirect Expenses
• Utility Bills
• Depreciation
• Machinery Maintenance

7. Introduction to Punjab Oil Mills
• Punjab Oil Mills Limited (POML) was founded in 1983 as a manufacturer of
Banaspati and Cooking Oil.
• Punjab Oil Mills Limited is a leading manufacturer of edible oils and fats
based in Islamabad, Pakistan.

8. Products
• Banaspati
• Zaiqa Banaspati
• Ella Banaspati
• Oliva Banaspati
• Cooking Oils
• Zaiqa cooking oil
• Ella Sunflower oil
• Oliva Oils

9. POM Costing
• Direct Material
• Material Requite Process
• Store Room
• Factory Office
• Purchase Department

10. POM Costing
• Direct Labor
• Total 300 employees
• Minimum wage rate 15000
• Company profitability increases wages

11. POM Costing
• Indirect Material
• Major indirect materials are caustic soda, bleaching earth, nickel etc
• Indirect Labor
• 25% of total labors are indirect labors
• Some are paid monthly and some are per hour

12. POM Costing
• Other Expenses
• Electricity bill 250 Lac per year
• Gas bill 200 Lac per year
• Stream 80 Lac per month

13. Thank you!