Question

Draw the cost sheet proforma.

Hint:

A cost sheet shows all cost elements step by step in one place.

Answer 1

Below is a standard format of a simple cost sheet proforma used to present various cost elements step by step:

\[ \begin{array}{|p{10cm}|r|} \hline \textbf{Particulars} & \textbf{Amount (₹)} \\ \hline \text{Direct Materials} & \\ \text{Direct Labour} & \\ \text{Direct Expenses} & \\ \hline \textbf{Prime Cost} & \\ \hline \text{Add: Factory Overheads} & \\ \hline \textbf{Factory Cost (or Works Cost)} & \\ \hline \text{Add: Administrative Overheads} & \\ \hline \textbf{Cost of Production} & \\ \hline \text{Add: Selling \& Distribution Overheads} & \\ \hline \textbf{Total Cost or Cost of Sales} & \\ \hline \text{Add: Profit} & \\ \hline \textbf{Sales} & \\ \hline \end{array} \]
This proforma helps show how different cost elements add up from prime cost to factory cost, total cost, and finally sales.
It can be adjusted as per the nature of the industry and requirements of management.