6. From the following information, prepare a cost sheet for period ended on 31" March 2021. Particulars Amount (RO) Opening stock of raw material Purchases of raw material Closing stock of raw material 10,000 100,000 20,000 Direct Labor 40,000 Direct expenses Factory overheads 50% of direct expenses 20,000 Office and administrative overheads 10% of net works cost Selling and distribution overheads Cost of opening stock of finished goods Cost of Closing stock of finished goods 4.000 10,000 5,000 Profit on cost 30% Opening stock work in progress Closing stock work in progress 2.000 1,000
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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