Cost sheet doubts



hello,

           could anyone please advise me as to what should be the treatment of the following in a cost sheet and why...

           1)drawing office stationery

           2)dock charges

           3)sale of scrap of raw materials

           

 
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CA IN PRACTICE

sale of scrap of raw material should be deducted while calculating raw material consumed before prime cost


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Originally posted by : future ca

sale of scrap of raw material should be deducted while calculating raw material consumed before prime cost

AGREED.


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CA IN PRACTICE

office stationery is part of administrative expenses


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CA IN PRACTICE

dock charges should be part of prime cost- if paid for purchase of raw goods

 
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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...


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CA IN PRACTICE

@ manoj it is office stationery not office salary

 
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CA Final

agreed with mr future ca 

office stationery should be part of adm exp

 

cheers


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CA, CS And CMA Final

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.
 
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Drawing office Salary is incurrred for factory......Whether stationery or salary its factory overhead....

 
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