From the following particulars prepare a Cost Sheet showing production 4, units in and 6, units in Rs. Sometimes the manufacturing report is issued to outside investors or creditors for additional information.
Required: i Finished goods inventory, II Labour Cost In actual production of the product, labour is the prime factor which is physically and mentally involved.
Again, note that the coloured signs on the left of each note are just there to help, and are not usually included! For example, why are we adding opening work in progress and minusing closing work in progress towards the end of the statement?
These are drawn up as notes to the financial statements, and are also essentially ledger accounts in statement form. Indirect materials cannot be identified with a particular unit of cost or product.
Definition: A manufacturing statement, also called the schedule of cost of goods manufactured or the schedule of manufacturing activities, is a summary of all of the manufacturing activities and costs.
The payment of remuneration of wages is made for their effort. The insurance Company wants to know the historical cost of the inventories as a basis for negotiating a settieent, although the settlement is actually to be based on replacement cost, not historical cost.