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Cost sheet doubts

simi (student) (28 Points)

08 June 2011

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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12 Replies

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 08 June 2011

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

1 Like

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graph) (85935 Points)
Replied 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

AGREED.

1 Like

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 08 June 2011

office stationery is part of administrative expenses

1 Like

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 08 June 2011

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

MANOJ SHRIPATI (CA FINAL) (56 Points)
Replied 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...

1 Like

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 09 June 2011

@ manoj it is office stationery not office salary

Arniv Sharda (CA Final) (3006 Points)
Replied 09 June 2011

agreed with mr future ca

office stationery should be part of adm exp

cheers

1 Like

Rajnikant Vadigoppula (CA, CS And CMA Final) (919 Points)
Replied 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.

MANOJ SHRIPATI (CA FINAL) (56 Points)
Replied 15 June 2011

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

Traiyee Mishra (2 Points)
Replied 22 July 2018

sales of scrap will be deducted from total of factory overheads.

Indira Priyadarsini Kota (Practice) (590 Points)
Replied 29 January 2021

What type of costs come under factory OHs?

Prachi Bansal (3134 Points)
Replied 23 February 2021

Production supervisor salaries, materials management salaries, factory utilities, fringe benefits, quality assurance salaries, Depreciation, factory building insurance, equipment maintenance, Factory rent, Factory small tools charged to expense, Equipment setup costs, Property taxes on production facilities, Factory supplies and Insurance on production facilities and equipment

These are some examples of factory overhead costs.