Cost sheet is a document that provides for the assembly of an estimated detailed cost in respect of cost centers and cost units. It analyzes and classifies in a tabular form the expenses on different items for a particular period. Additional columns may also be provided to show the cost of a particular unit pertaining to each item of expenditure and the total per unit cost.
Cost sheet may be prepared on the basis of actual data (historical cost sheet) or on the basis of estimated data (estimated cost sheet), depending on the technique employed and the purpose to be achieved.
The techniques of preparing a cost sheet can be understood with the help of the following examples.
Following information has been obtained from the records of left center corporation for the period from June 1 to June 30, 1998.
Cost of raw materials on June 1,1998
Purchase of raw materials during the month
Cost of work in progress on June 1, 1998
Cost of raw materials on June 30, 1998
Cost of stock of finished goods on June 1, 1998
Cost of stock of finished goods on June 30, 1998
Selling and distribution overheads
Prepare a statement of cost.
Statement of cost of production of goods manufactured for the period ending on June 30, 1998.
From the following information, prepare a cost sheet showing the total cost per ton for the period ended on December 31, 1998.
|Raw materials||33,000||Rent and taxes (office)||500|
|Productive wages||35,000||Water supply||1,200|
|Direct expenses||3,000||Factory insurance||1,100|
|Unproductive wages||10,500||Office insurance||500|
|Factory rent and taxes||2,200||Legal expenses||400|
|Factory lighting||1,500||Rent of warehouse||300|
|Motive power Haulage||3,000||Plant and machinery||2,000|
|Director’s fees (works)||1,000||Office building||1,000|
|Directors fees (office)||2,000||Delivery vans||200|
|Factory cleaning||500||Bad debt||100|
|Sundry office expenses||200||Advertising||300|
|Expenses||800||Sales department salaries||1,500|
|Factory stationery||750||Up keeping of delivery vans||700|
|Office stationery||900||Bank charges||50|
|Loose tools written off||600||Commission on sales||1,500|
The total output for the period has been 10000 tons.
Solution : Cost sheet for the period ended on December 31, 1998
|Factory rent and taxes||2,200|