The document discusses the components and computation of a cost sheet. It explains that a cost sheet tracks direct material costs, direct labor costs, direct expenses, factory/works overhead costs, office and administration overhead costs, and selling and distribution overhead costs. It provides a template for a cost sheet showing accounts for materials consumed, direct labor, prime costs, factory costs, production costs, cost of goods sold, and sales. It then provides an example cost sheet with specific costs to populate the template for a company.

1. Cost Sheet
Dr. Bharti

2. Components of Cost sheet
• Direct material together as
• Direct labor constitute prime cost
• Direct expense
Indirect material
Indirect labor of the factory together constitute factory or
work
Indirect expenses work cost

3. Computation of Cost
Prime Cost = Direct Material+ Direct Labour +Direct
expenses
Factory cost or works cost =Prime cost + Factory (or works
overhead
Cost of production = Works cost + office and Administration
Overheads
Total cost or cost of sales = Cost of production + Selling and
distribution overhead
Sale = cost of sales + profit

4. Cost Sheet
A. Materials Consumed :
Purchases
Add : Opening Stock of Raw material
Direct Expenses on Purchases
Less : Closing Stock of Raw Material
Direct Material consumed
B. Direct Labour (Wages) .
C. Direct Expenses
D. Prime Cost (A + B + C)
E. Factory/Works Overheads
Add : Opening Stock of Work-in-Progress
. Less : Closing Stock of Work-in-Progress
F. Works/Factory Cost (D + E)
G. Office and administration overheads`

5. Cost Sheet
H. Total Cost of Production (F + G)
Add : Opening Stock of finished Goods
Less : Closing Stock of finished Goods
I . Cost of production of goods Sold or cost of good sold
J. Selling and Distribution Overheads
K. Total Cost (I + J) = Cost of Sales
L. Profit
M. Sales (K + L)

6. Quest
• Prepare cost sheet
• Cost of material = 240000
• Wages =200000
• Factory overheads = 120000
• Distribution overheads = 56000
• Administration overheads = 134400
• Selling expenses = 89600
• Profit =168000

9. Prepare Cost sheet
• Cost of raw material in stock on isrt march 2008 15000
• Raw material purchased during the month 225000
• Wages paid 100000
• Wages outstanding 15000
• Factory overhead 46000
• Work in progress as 1 march, 2008 6000
• Raw material in stock 31 march 2008 12500
• Work in progress as 31 march 2008 7500
• Opening stock of finished goods 27500
• Closing stock 10000
• Selling and distribution expenses 220000
• Sales 450000
• Administration overheads 15000