Particulars

Opening stock of raw material

Add: purchases of raw material
Add: carriage on purchases if any
less: sale of unsuitable materials
less: closing stock of raw material
Direct wages

Direct expenses(if any)

PRIME COST
ADD factory overheads/works overheads/factory on cost/works on cost
1 SALARIES
2REPAIRS OF PLANT
3 RENT TAXES
4DYEING AND WATER
5 GAS AND WATER CHARGES
6 PRODUCTION MANAGER SALARY
7 Depreciation Written off on Plant & Machinery

ADD: O/S of work in process

less: C/s of work in process

less: Sale of scrap

you will arrive at works cost/factorycost
Add: administation overhead / general overheads

cost of production
Add: opening stock of finished goods
Less: closing stock of finished stocks
COST OF GOODS SOLD
Add: selling and distribution cost
1
2
3
4
COST OF SALES
ADD NET PROFIT
SALES
 Jeans Handbags Skirts
internal external internal external internal external
200000
600000 300000 100000
12000 6000 2000
-25000 0 0
-150000 75000 25000
300000 120000 180000
937000 501000 307000
0 0 0
937000 937000 500000 307000

15350 10000 5000

8000 4000 1600
12000 6000 2000
3000 1500 500
850 300 100
10000 6900 5000
9000 3000 2000
58200 31700 16200
995200 531700 323200
100000
-35000 -10000 -5000
65000 65000
1060200 521700 318200

1 ADMIN OVERHEAD 25000 15000 5000

2 RENT TAXES 2000 700 300
3 Depreciation Written off on Office Furniture 1800 550 400
4 Director’s Fee 15000 7000 3000
5 General Charges + General Manager’s SalaryAO 20750 10000 5000
64550 33250 13700
1124750 554950 331900

350000
450000