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Cost Sheets Example PDF

Direct costs include direct materials and direct labor. Indirect costs are factory overhead costs that cannot be traced to a specific product but are necessary for production. Unit cost is calculated by taking the total sales cost and dividing it by the number of units produced. It represents the average cost to produce each individual unit. Administrative and selling costs include expenses like sales commissions, salesperson salaries, sales discounts, freight out, and manager salaries. These costs are not directly involved in manufacturing but are necessary for selling products.

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39 views2 pages

Cost Sheets Example PDF

Direct costs include direct materials and direct labor. Indirect costs are factory overhead costs that cannot be traced to a specific product but are necessary for production. Unit cost is calculated by taking the total sales cost and dividing it by the number of units produced. It represents the average cost to produce each individual unit. Administrative and selling costs include expenses like sales commissions, salesperson salaries, sales discounts, freight out, and manager salaries. These costs are not directly involved in manufacturing but are necessary for selling products.

Uploaded by

qwert
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Determining unit cost of products:

Components of products:

1) Direct Material
2) Direct Labor
3) Factory Overhead (Indirect Cost)

• What is the difference between direct and indirect cost?

Cost sheets:
Raw Material purchase xx
[+] Freight in xx
[+] Loading and
Unloading charge xx
[+] Insurance cost xx
Purchase cost XX
[-] Purchase Discount (xx)
[-] Purchase return and
Allowance (xx)
Net Purchase xx
[+] Beginning RM xx
[-] Closing RM (xx)
RM Used (DM) xx
Direct Labor xx
Prime Cost xx
Applied FOH XX
Total Manufacturing
Cost/Work cost xx
[+] Beginning WIP xx
[-] Closing WIP (xx)
Cost of goods
Manufactured XX
[+] Beginning FG xx
[-] Closing FG (xx)
COGS (Cost of goods
Sold) XX
[+] Administrative and
Selling cost XX
Total sales cost XXX
[+] Profit XX
Selling Price XX
Unit cost: (Total sales cost/No. of units produced)

Administrative and Selling cost :


Sales commission
Sales person salary
Sales discount
Freight out
Salary to manager

The following data are forming the accounts of Millville Company:

Inventories:
July 1, 20A June 30, 20B
Finished Goods Tk. 20,000 Tk. 28,000
Work in process 60,000 36,000
Materials 40,000 48,000

Sales discounts……………………………………………………………………………. Tk.8, 000


Purchase discounts……………………………………………………………………… 3,200
Sales………………………………………………………………………………………….…1,800,000
Purchase returns and allowances…………………………………………………… 20,000
Depreciation-factory machinery…………………………………………………… 160,000
Factory insurance……………………………………………………………………………. 50,000
Freight out………………………………………………………………………………………. 8,000
Other factory expenses…………………………………………………………………… 16,000
Bond interest expenses…………………………………………………………………….50,000
Sales salaries…………………………………………………………………………………..100,000
Freight in…………………………………………………………………………………………..12,000
Direct factory labor…………………………………………………………………………800,000
Materials purchases………………………………………………………………………..400,000
Advertising expenses………………………………………………………………………. 12,000

Required: Prepare a Cost of Goods Sold statement for the year ended June 30, 20B

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