Cost Accounting - Cost Sheet

A cost sheet is prepared to know the outcome and breakup of costs for a particular accounting period. Columnar form is most popular. Although cost sheets are prepared as per the requirements of the management, the information to be incorporated in a cost sheet should comprise of cost per unit and the total cost for the current period along with the cost per unit and the total cost of preceding period. Data of financial statement is used for preparation of cost sheet. Therefore, reconciliation of cost sheet and financial statement should be done on a regular interval.

Format

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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