Cost Accounting Cost Sheet - Accounting Basics

What is a Cost Sheet in Cost Accounting?

For a particular account period, the outcome of the cost and the breakup of the costs are determined by the cost sheet. The cost sheets are prepared as per the management requirements and the information that is to be incorporated in the cost sheet should include cost per unit, current period total cost, preceding period total cost. Financial statement data is used for preparing the cost sheet and hence the financial statements and cost sheets should be reconciled at regular intervals.

Formatof a Cost Sheet

COST SHEET OR STATEMENT OF COST
Opening Stock of Raw material
Add: Purchases
Less: Closing Stock
Cost of material Consumed
Add: Direct Labor/Wages
Prime Cost
Add: Works overheads
Works Cost
Add: Administration overheads
Cost of Production
Add: Selling and distribution overheads
Total Cost or Cost of Sale

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