An analysis of the total cost of production and cost of sales is carried out by preparing “Cost sheet”. A Cost sheet is an important document prepared by the costing department.
Cost sheet is prepared to analyse the components of total cost, thereby determining (i) prime cost, (ii) works cost, (iii) cost of production, (iv) cost of sales and (v) profit. All aspects discussed are presented in the format or specimen of a cost sheet which is shown inTable 1.6:
Specimen of Cost Sheet
For the period ended….
*13. Direct Expenses
*27. Add: Administration overhead
Cost Sheet Depicting Components of Total Cost
ABC Co Ltd. is engaged in the manufacture of product “P”. Its records reveal the following data for 31 March 2010:
Direct Wages: Rs. 20,000
Factory overhead: 125% of direct wages
31 March 2009 Rs.
31 March 2010 Rs.
Sales for the year
Prepare a cost statement.
Buy an essay in any subject you find difficult—we’ll have a specialist in it ready
Ask for help with your most urgent short tasks—we can complete them in 4 hours!
Get your paper revised for free if it doesn’t meet your instructions.
Contact us anytime if you need help with your essay
APA, MLA, Chicago—we can use any formatting style you need.
Get a paper that’s fully original and checked for plagiarism