cost records format forliquor industry

Mr Sameer,

You are to maintain the following records:

(i)        Materials     →     Raw material, processed material, consumable stores, etc.

                           →     Purchased, issued and balance.

                           →     Cost to include all direct charges upto works.

                           →     Separate records for wastage, spoilage losses, etc.

                           →     Method to adjust the loss.

                           →     Method of valuation actual or standard costing.

(ii)    Manufactured components & Intermediaries :

                           →     Separate records

                           →     Quantity and value

                           →     Wastage  

(iii)     Stores and Spare Parts :

→  Receipt, issues and balances.

→  Quantity and value.

→  All direct charges upto works

→  Used should be charged to relevant head.

→  Wastage separately shown.

(iv)    Wages and Salaries :

→  Proper Records to show attendance and earnings.

→  Records to show overtime wages, piece rate wage earned, incentive  wages and

      earnings of casual labourer.

→  Idle time.

→  Extent of wages and salaries capialised.

(v)      Overheads :       

→  Proper maintenance of records.

→  Classified under works, Administration and selling and distribution overheads.

→  Allocation of or. to deptt., etc.

→  If allocation on method other than actuals the variation and its treatment.

(vi)      Service deptt. Expenses including Expenses on utilities :

                           →     Expenses on power, fuel, water and steam (purchased or generated)

                           →     Expenses on subsidized canteen.

                           →     Maintenance deptt. Expenses.

                           →     Allocation on reasonable basis.

(vii)     Depreciation :

→  Cost, date of installation, rate of depreciation, and amount of depreciation provided.

→  Old assets.

→  Minimum rate of depreciation in Company Act.

→  AS-6.

(viii) Packing :     →     Quantity and cost of packing material.

                           →     Wages and other expenses on packing.

                           →     Income received by sale/disposal of spoiled, rejected waste materials.

(ix)    By-products :

                           →     Proper records.

                           →     Receipt, issues and Balances (quantity and value).

                           →     Basic of Valuation.

                           →     Sales realization.

                           →     Expenses on further process of by-product.

(x)      Production and Sales :

                           →     Records (quantity and value)

                           →     Separate records of packed and unpacked finished goods.

                           →     Records of Sales and inventory.

(xi)    Inventories : →   Classified as raw materials, stores and spare parts WIP and finished goods.

                              →   Separate records (quantity and value).

                              →   Physically verified.

                              →   Reasons for shortage and excess.

                              →   Method to determine cost of WIP and finished goods.

                              →  Methods to be followed consistently.

(xii)    Variances :    →  If Standard Costing i.e. other than actuals then procedure followed to work out  cost of      the products.

                               →  Reasons for variances.

(xiii)      Cost Statements :

                            →  As part of cost records.

                            →     w.r.t. each product.

                            →     Form of cost sheet (prescribed).

(xiv)      Reconciliation of Cost and Financial Account :

                           →     To ensure accuracy.

                           →     Variations clearly indicated an explained.

                           →     Period of reconciliation < financial year of company.

                           →     Difference between sales realization and total cost and then it is reconciled with financial P&L A/c. for the period.

                           →     Specific information in Both A/c. not to be different.

(xv)  Royalty :      →     Records of Royalty paid.

                           →     With terms of agreement.

                           →     Basis of computation.

                           →     Allocation to different cost centers, etc.

                           →     If it is a direct charge or overhead.

(xvi)   Statistical Records :

                           →     Plant utilization, idle machine time, capital employed, capital W.I.P.

                           →     Percentage of different raw materials.

                           →     To have control over various operations and costs.

(xvii)   Inter – Company transfer :

                           →     Normally, no inter co. transfer below cost.

                           →     Ensure against shifting of profits between corporate investors.

                           →     Proper valuation of inter-company transfer to generate revenue (duty and tax).

2. Industrial Alcohol is covered under Cost Audit.

Welcome for any other queries. Pl contact at my e.mail.

S. Banerjee