cgs

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(Company Name) Cost of Goods Manufactured and Sold Statement For the Year Ended ___________ Details Rs Rs Opening Raw Material Add: Purchases xxx Less: Discount on purchase (xxx) Less: Return on purchase (xxx) Add: Freight in xxx Add: Carriage in xxx Cost of Material Available for Use Less: Closing Raw Material 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) xxx xxx xxx (xxx) xxx xxx xxx xxx xxx xxx xxx (xxx) xxx xxx xxx (xxx) xxx

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Page 1: Cgs

(Company Name)Cost of Goods Manufactured and Sold Statement

For the Year Ended ___________

Details Rs RsOpening Raw MaterialAdd: Purchases xxxLess: Discount on purchase (xxx)Less: Return on purchase (xxx)Add: Freight in xxxAdd: Carriage in xxxCost of Material Available for UseLess: Closing Raw Material

Cost of Material Consumed/UsedAdd: Direct LabourPrime CostAdd: Factory Overhead (w-1)Total Manufacturing CostAdd: Opening Work In ProcessCost of Goods to be Manufactured Less: Closing Work In ProcessCost of Goods Manufactured Add: Opening Finished GoodsCost of Goods to be SoldLess: Closing Finished goodsCost of Goods Sold (w- 2)

xxx

xxxxxx

(xxx)

xxxxxxxxxxxxxxxxxxxxx

(xxx)xxxxxxxxx

(xxx)xxx

Actual FOH (Factory Overhead) Includes

Heat and power Indirect material consumed Indirect labourDepreciation of any AssetTool expenses Fire insurance Misc. FOHFactory office salaries Superintendence

Page 2: Cgs

Factory taxesEmployer’s 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.

Page 3: Cgs

WORKING 2 (W-2):

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

Details AmountActual FOH (Factory overhead)Less: Applied FOH (Factory overhead)Under Applied / (Over Applied)NOTE:1: Under Applied should be Added2: Over Applied should be Less

xxx(xxx)xxx

(Company Name)Income Statement

As the Year Ended__________

Details Amount Amount

Sales Less: Discount on SalesLess: Return on SalesNet salesLess: CGS (Cost of Goods Sold)Gross Profit / Gross LossLess Other Expenses:Marketing ExpensesSelling ExpensesDistribution ExpensesAdministrative ExpensesNet Profit / Net Loss

xxx(xxx)(xxx)

xxxxxxxxxxxx

xxx(xxx)xxx

(xxx)xxx

Some Important Formulas:

Prime Cost

Material Used + Direct Labour

Conversion Cost

Page 4: Cgs

Direct Labour + Factory Overhead

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 × 100Ans = ___ %

Gross Profit To Sale

G.P ÷ Sale × 100Ans = ___ %

Net Profit To Cost

N.P ÷ C.G.S × 100Ans = ___ %

Net Profit To Sale

Net Profit ÷ Sale × 100Ans = ___ %

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