Cost Sheet formula for manufacturer

Cost sheet formula includes prime cost, works cost, cost of production, cost of goods sold, cost of sales, etc.


Opening Stock of Raw Material***
Add: Purchase of Raw materials***
Add: Purchase Expenses***
Less: Closing stock of Raw Materials***
Raw Materials Consumed***
Direct Wages (Labour)***
Direct Expenses***
Prime cost***
Add : Factory Over Heads:
Factory Rent***
Factory Power***
Indirect Material***
Indirect Wages***
Supervisor Salary***
Drawing Office Salary***
Factory Insurance***
Factory Asset Depreciation***
Works cost Incurred***
Add: Opening Stock of WIP***
Less: Closing Stock of WIP***
Works cost***
Add: Administration Over Heads:
Office Rent***
Asset Depreciation***
General Charges***
Audit Fees***
Bank Charges***
Counting house Salary***
Other Office Expenses***
Cost of Production***
Add: Opening stock of Finished Goods***
Less: Closing stock of Finished Goods***
Cost of Goods Sold***
Add: Selling and Distribution OH:
Sales man Commission***
Sales man salary***
Traveling Expenses***
Delivery man expenses***
Sales Tax***
Bad Debts***
Cost of Sales***
Profit (balancing figure)***

·             Factory Over Heads are recovered as a percentage of direct wages 
·             Administration Over Heads, Selling and Distribution Overheads are recovered as a percentage of works