In this article we will discuss about the formulas used to determine cost. 1. Calculation of the Cost of Materials Consumed: Raw materials which become part and parcel of the commodity manufactured are known as direct materials. If opening stock of raw materials, purchase of raw materials, loss of raw materials, transfer of raw materials are given, then cost of [...]
In this article we will discuss about:- 1. Meaning of Output Costing 2. Features of Output Costing 3. Objectives 4. Important Items Regarding Preparation of Statement of Cost and Cost Sheet 5. Cost Collection or Cost Accumulation. Contents: Meaning of Output Costing Features of Output Costing Objectives of Output Costing Important Items Regarding Preparation of Statement of Cost and Cost [...]
To determine the selling price of goods produced it is essential to add profit to the cost of saleable goods. Following points should be considered while computing profit: 1. If Percentage of Profit is given on cost then amount of profit will be calculated as follows: It is further assumed that 10% profit has to be earned, then- Profit= (1,25,000 [...]