Comparative statements

726 views 5 replies

what is the exact difference between cost of sales and cost of goods sold?

Replies (5)

the term cost of sales shall include alongwith COGS(cost of goods sold) and various selling  & distribution expenses

howver COGS only includes any expenditure incurred to bring goods into saleable conditions  in additoin to    procurement cost of goods

Originally posted by : tirthesh shah

the term cost of sales shall include alongwith COGS(cost of goods sold) and various selling  & distribution expenses

howver COGS only includes any expenditure incurred to bring goods into saleable conditions  in additoin to    procurement cost of goods

agreed cost of sales comes after addind selling and distribution cost

Gr8 Shah Ji.........

 

There is no prescribed format of a Cost sheet. It may change from industry

to industry. A specimen format of a Cost Sheet is given as under:

 

A. Materials Consumed :

Purchases ..............

Add : Opening Stock of Raw material ..............

 Less : Closing Stock of Raw Material ..............

Direct Material consumed .............. 

 B. Direct Labour (Wages) ..............

C. Direct Expenses ..............

 D. Prime Cost (A + B + C) ..............

 E. Factory/Works Overheads 

Add : Opening Stock of Work-in-Progress

Less : Closing Stock of Work-in-Progress ..............

 F. Works/Factory Cost (D + E) ..............

 G. Office and administration overheads ..............

H. Total Cost of Production (F + G) ..............

Add : Opening Stock of finished Goods ..............

Cost of Goods available for sale ..............

Less : Closing Stock of finished Goods ..............

I. Cost of production of goods Sold or cost of good sold ..............

J. Selling and Distribution Overheads ..............

K. Total Cost (I + J) = Cost of Sales ..............

L. Profit ..............

M. Sales (K + L) ..............

thank you sir


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register