costing

hai

     i have one doubt  that is how to prepare cost reports in company. plz clarify my doubt.

Hi rajyalakshmi the following format may be useful for you to prepare costing statement 1.Sales XXX Less: Direct material Cost XXX Direct Labour Cost XXX Direct Expenses (Prodn Expns) XXX 2. Total Variable Cost XXX Contribution 1-2 XXX Per Unit cost = Total Variable Cost / No of units produced.

the cost statement shows the cost of a particular product. In calculating the cost each and every factor has its own importance. whether it is fixed or variable, direct or indirect. may the following gives u the right solution:

cost of rawmaterial:

+freight

+direct labour

+any direct expenses

+variable expenses like indirect labour etc.,

this constitutes the cost of the total production. if we divide the total cost by the total quantity produced we can get the product cost.