Page 53 - DCOM202_COST_ACCOUNTING_I

Unit 3: Cost Sheet and Unit Costing

Wages of foreman 5,000 Notes
Electric power 1,000
Lighting : Factory 3,000
Storekeeper’s wages 2,000
Oil and water 1,000
Rent: Factory 10,000
Depreciation plant 1,000
Consumable store 5,000
Repairs and Renewal plant 7,000 35,000
Factory Cost 2,95,000
Administration Overheads:
Rent Office 5,000
Depreciation office 2,500
Managers’ salary 10,000
Directors’ fees 2,500
Office stationery 1,000
Telephone charges 250
postage and telegrams 500
Office premises 1,000
Lighting: Office 1,000 23,750
Cost of production 3,18,750
Selling and distribution overheads:
Carriage outward 750
Salesmen’s salaries 2,500
Travelling expenses 1,000
Advertising 2,500
Warehouse charges 1,000
7,750
Cost of Sales 3,26,500
Profit 52,500
Sales 3,79,000
The next stage in the preparation of the cost statement is to induct the stock of raw materials,
work in progress and finished goods.

Stock of Raw Materials

The raw materials stock should be taken into consideration for the preparation of the cost sheet.
The cost of the raw materials is nothing but the direct materials cost of the product. The cost of
the materials is in other words cost of the materials consumed for the production of a product.

Particulars `
Opening stock of raw materials XXXXX
(+) purchases of raw materials XXXXX

(–) Closing stock of raw materials XXXXX
Cost of materials consumed XXXXX

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