cgs
DESCRIPTION
CgsTRANSCRIPT
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(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
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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.
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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
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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