Value Added statement
                                      for the period of.......
       particulars                                                     Amt             Amt
 sales  revenue                                                                          ***
Add: closing stock:FG
                            WIP
                            RM                                         ***
Less: opening stock:FG
                              WIP
                               RM                                      ***                  ***
Add: Other income                                                                      ***
Value of output                                                                             ***
Less: cost of bought material & services:
Raw materials , carriage                                        ***
power & fuel , fright                                              ***
manufacturing o/h                                                  ***
admin exp.                                                             ***
selling exp.                                                             ***                  ***

Value Added:                                                                                  ***
Applied as follows
1. salary & wage, man power cost, bonous
  provident fund
2. income tax, wealth tax
3. interest ,dividend
4. depreciation ,
  Retained profit / net profit
Value added



                                       A  B  C

calculation of total cost n cost per unit under conventional costing

Details                     a           b          
direct material          **        **
direct labour            **         **
overhead                 **         **
total cost
cost per unit

calculation of cost driver rate

Cost pool        Overhead      Cost driver      Volume of acativity      CDR



Distribution of overhead

Cost pool      CDR      Prod.          Prod.
                                 vol.   cost      vol.    cost




COST POOL                           COST DRIVER
1. material procurement         no. of order/ purchase /no. of procurment
2. store receiving                   no. of requisition raised
3. material holding &dispatch  no. of movement / on. of machine handled/
no.of order excuted / no. of component qty
4. setup /schedulding cost      no. of setup/ no. of prodn run
5.customer order processing   no. of order/ no. of customer/
no. of customer visit
6. repair n maintenance cost    machine hour/ repair hour

            PROCESS COSTING


inter process profit

particulars                      total     cost    profit          particulars      total    cost   profit
to opening stock                                                    by process a/c
to direct material
to direct wage
total
less:closing stock
prime cost
factory o/h
total cost
add: profit on transfer price
total


                finish stock a/c
particulars                    total   cost    profit     particulars    total   cost   profit
to process a/c                                               by sales
to opening stock
cost of goods avail.sale
less:closing stock
cost of goods sold
to gross profit



                                 Contract Accout
particulars                  amt        particulars                    amt
to material                             by material at site
to wage                                 by material return to store
to other indirect exp.              by plant
to plant                                    depn.
to gain on sale                        by p&L a/c (plant)
to notional profit                     by sale  (plant)
                                              by loss on material
                                              by WIP
                                              work certefied
                                               work uncertefied
to P/L a/c                       
(np * 2/3 * CR/WC)                by notional profit
to reserve                               



                       OVERHEAD

              Distribution overhead

items             basis of apportionment   total     prod. dept.      service dept.
all direct exp.                                                     --------             ***
power               H.P. * M. H.



                  ACCOUNTING FOR LABOUR

1. Halsey plan
      total earning = (T.T * T. R.) +1/2 (T.S *T.R)
 TS=time saved

2. Rowan plan

total earning = (T.T * T.R) + (T.S/S.D *T.T *T.R)
SD = standard time

3.Taylors differentail piece rate system
low piece rate = output * low rate 80%
high piece rate = output * high rate 120%

4. Gantts task bonus scheme
earning = standard time * time rate
equal to standard
earning = T.T * T. R + 20% Bonus
Above standard
earning = prodn * high piece rate
prodn * S. piece rate + 20% S. piece rate

Effective rate = total wage /time taken



         INVENTORY MANAGEMEN

              ----------
EOQ = /  2AO/C
A= annual requirement
O= odering cost per order
C= carrying cost per unit

Total ordering cost = A/Q *O
A= annual requirement
O= odering cost per order
Q= QTY

Total carrying cost = Q/2 *C
Q= QTY
C= carrying cost per unit

Total cost
total ordering cost + total carrying cost

Calculation of EOQ  by using trial and erros
no. of order(n)
QTY(Q)
Average qty(Q/2)
carrying cost(Q/2 *C)
ordering cost (n * O)
on the basis above calculation ordering cost & carrying cost are equal in.... kgs