(Company Name)

Cost of Goods Manufactured and Sold Statement

For the Year Ended ___________

Details
Opening Raw Material
Add: Purchases
Less: Discount on purchase
Less: Return on purchase
Add: Freight in
Add: Carriage in
Cost of Material Available for Use
Less: Closing Raw Material

Rs
xxx
xxx
(xxx)
(xxx)
xxx
xxx

Cost of Material Consumed/Used

Add: Direct Labour
Prime Cost
Add: Factory Overhead (w-1)
Total Manufacturing Cost
Add: Opening Work In Process
Cost of Goods to be Manufactured
Less: Closing Work In Process
Cost of Goods Manufactured
Add: Opening Finished Goods
Cost of Goods to be Sold
Less: Closing Finished goods
Cost of Goods Sold
(w- 2)

Actual FOH (Factory Overhead) Includes

Heat and power
Indirect material consumed
Indirect labour
Depreciation of any Asset
Tool expenses
Fire insurance
Misc. FOH
Factory office salaries
Superintendence

Rs

xxx
xxx
(xxx)
xxx
xxx
xxx
xxx
xxx
xxx
xxx
(xxx)
xxx
xxx
xxx
(xxx)
xxx

Factory taxes
Employers contribution provident fund
(Any other expense which is related to Factory)

Indirect Materials:
Cotton waste
Factory office supplies
Fuel, oil coal etc.
Lubricants
Perishable tools
Repair and maintenance stores.

Indirect Labour:
Cleaners, janitors, helpers
Factory office staff
Foreman, supervisors etc
Idle time wages
Overtime premiums
Payroll contributions and taxes
Paid leaves
Quality inspectors

Other indirect Expenses:

Depreciations
Electricity and gas bills
Insurance
Normal rework on defective production
Normal spoilage
Property taxes
Rent
Service departments expenses
NOTE:
WORKING 1 (w-1):

If Actual and Applied FOH (Factory Overhead) both are given in

question then applied FOH (Factory Overhead) should be written in the CGS
(Cost of Goods Sold) Statement.

WORKING 2 (W-2):

If Actual and Applied FOH (Factory Overhead) both are given in the
question,

Details

Amount

Actual FOH (Factory overhead)

Less: Applied FOH (Factory overhead)
Under Applied / (Over Applied)
NOTE:
1: Under Applied should be Added
2: Over Applied should be Less

xxx
(xxx)
xxx

(Company Name)
Income Statement
As the Year Ended__________
Details
Sales
Less: Discount on Sales
Less: Return on Sales
Net sales
Less: CGS (Cost of Goods Sold)
Gross Profit / Gross Loss
Less Other Expenses:
Marketing Expenses
Selling Expenses
Distribution Expenses
Administrative Expenses
Net Profit / Net Loss

Some Important Formulas:

Prime Cost
Material Used + Direct Labour
Conversion Cost
Direct Labour + Factory Overhead

Amount

Amount

xxx
(xxx)
(xxx)
xxx
(xxx)
xxx
xxx
xxx
xxx
xxx

(xxx)
xxx

Total Manufacturing Cost (T.M.C)

Material Used + Direct Labour + FOH
No. of Units Manufactured
Units sold + Finish Goods Closing Finish Goods Opening
Per Unit Manufactured Cost
Cost of Goods Manufactured Units Manufactured
Gross Profit To Cost
Gross Profit C.G.S 100
Ans = ___ %
Gross Profit To Sale
G.P Sale 100
Ans = ___ %
Net Profit To Cost
N.P C.G.S 100
Ans = ___ %
Net Profit To Sale
Net Profit Sale 100
Ans = ___ %
Gross Profit Per Unit Cost
G.P Units Sold = Rs. ___ Per Unit Cost
Net Profit Per Unit Cost
N.P Units Sold = Rs. ___Per Unit Cost