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
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
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 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.
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 08 June 2011
office stationery is part of administrative expenses
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...
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
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
(3129 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.
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