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M.com,CS,CA F Tushar Sampat (M.com CS,CA F) 08 June 2011
|Originally posted by : future ca|
sale of scrap of raw material should be deducted while calculating raw material consumed before prime cost
MANOJ SHRIPATI (CA FINAL) 08 June 2011
1. DRAWING OFFICE SALARY - FACTORY OVERHEADS
EXPL : DRAWING OFFICE SALARIES ARE INTERPRITED AS SALARY PAID FOR DRAWING THE PRODUCTION CHART OR FOR THE PURPOSE OF PRODUCTION PLAN OR PRODUCTION PROCESS THAT HAS TO CARRIED OUT AND HENCE SUCH SALARY SHOULD BE RECORDED AS FACTORY OVERHEADS....
2. DOCK CHARGES - INCLUDE IN PRIME COST
EXPL :DOCK CHARGES ARE PAID FOR CLEARING THE GOODS PURCHASED AND HENCE SHOULD BE ADDED TO THE PURCHASE PRICE OF THE GOODS PURCHASED OR IT CAN BE SHOWN AS DIRECT EXPENSES....
3. SALE OF SCRAP OF R.M - DEDUCT FROM R.M PURCHASED / REDUCE THE FACTORY OVERHEADS...
EXPL : GENERALLY R M SCRAP IS GENERATED AFTER THE PRODUCTION AND HENCE IT IS ADVISIBLE TO REDUCE THE FACTORY OVERHEADS, HOWEVER IF REDUCED FROM R.M PURCHASED THEN ALSO ITS K...
Rajnikant Vadigoppula (CA, CS And CMA Final) 15 June 2011
i agree with manoj whatever drawing office charges is a factory overhaed. whether it is office stationary or salary to employee. remember drawing office is situated in factory and where only factory work is done and not the administrative work.