Page 14 - DCOM206_COST_ACCOUNTING_II

Unit 1: Service Costing

Notes
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Caution A statement of cost is prepared to find out the cost of per unit. This may be per
KWT or KWH. The costs are normally classified into: Steam production cost and Electricity
generation costs or Fixed charges, Maintenance charges and Variable charges.
Following are two specimens of statement of cost for power house costing:
Statement of Operating Cost for Electricity generation for the month of ………………
Steam Produced: ...........................................................................................................................................
Units of Electricity Generated:..................................... Steam Used for Generation:....................................
Particulars of Expenditure Total Cost (`) Cost per unit (`)
(A) Cost of Steam Generation:
Coal
Labour
Water
Fixed overhead
Repairs and maintenance
Supervision charges
Total Cost of steam generation/Total production
Less: Used in heating
Cost of Steam Used for Electricity Generator
Total
(B) Cost of Electricity Generation:

Cost of steam used

Wages

Depreciation

Stores

Supervision

Repairs and Maintenance
Total
(C) Total Operating Cost (A+B)
(D) Cost of per unit = Total Operating Cost ÷ Total Units Generated

Operating Cost Sheet for Electricity Generation
Units of Electricity Generated: …………
Particulars of Expenditure Total Cost (`) Cost per unit (`)
(A) Fixed Charges :
Depreciation
Supervision
Administrative overhead
Interest on capital
Total
(B) Variable and Maintenance Charges :

Cost of steam used

Cost of coal

Wages to operators

Lubricants, spares and stores

Repairs and maintenance
Total
(C) Total Operating Cost (A+B)
(D) Cost of per unit = Total Operating Cost ÷ Total Units Generated

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