Sr no

1
2

4
5
 Steps
Check Sales & Purchase register(Reconcile with party ledger with debit/credit note).
Check Production Journal/Bill of materials entry in system software(reconcile with Production order sheet).
Arrange/export Purchase regsiter data(bifurcate Raw materials/consumable/packing) from the system software of the requ
for purchase.
Now find closing stock value of Raw materials ,Consumable Goods, Packing materials under FIFO or Average Weighted Met
Now , for calculating closing value of Finished goods ----
A) Ist Preference-Use Standard rate system
OR,
B)2nd preference--(Selling Price-Profit)
OR,
c) 3rd Preference-Calculate -- Cost of Production
 Stock Summary
2019-20 Opening Stock Purchase/Production Sales/Consumption
Item name Qty Rate Value Qty Rate Value Qty Rate
Raw Material-1 100 52.00 5200 60 53.33 3200 120 42.90
Raw Material-2 45 55.56 2500 110 49.09 5400 115 51.62
Consumable-1 22 10.00 220 20 11.00 220 40 10.45
Consumable-2 10 15.00 150 9 12.33 111 13 14.38
Packing material 4 5.00 20 3 6.00 18 6 5.33
Finished Goods-1 80 53.00 4240 118 67.94 8016.76 79 73.00
Finished Goods-2 74 51.00 3774 110 68.00 7480.26 75 72.00
By-Product-1 12 20.83 250 14 21.00 294.00 20 22.00
By Product-2 13 18.46 240 19 19.00 361.00 30 20.00
 Purchase cost of
Materials= Invoice
Price+Freight Inward &
/Consumption Closing Stock cartage
Value Qty Rate Value
[Qty(100-99) x 52 +
5148 61 53.31 3252 Qty 60 x 53.33]
5936.364 40 49.09 1964 R/M & Consumables
418 2 11.00 22 closing stock rates on
FIFO basis
187 6 12.33 74
32 1 6.00 6
5767 119 67.94 8084.702
5400 109 68.00 7412.256
440 6 22.00 132
600 2 20.00 40

Standard rate taken for By

products
 PARTICULARS Qty
Opening stock:
Raw material-1 100
Raw material-2 45
Consumables-1 22
Consumables-2 10
packing Material 4
Not Countable Other Consumables & spare parts
Not Countable Work-in -Progress-1
Not Countable Work-in -Progress-2

Add:Purchase
Raw material-1 60
Raw material-2 110
Consumables-1 20
Consumables-2 9
packing Material 3
Other Consumables

Less: Closing Stock

Raw material-1 61
Raw material-2 40
Consumables-1 2
Consumables-2 6
packing Material 1
Other Consumables
Work-in -Progress-1
Work-in -Progress-2

TOTAL MATERIAL CONSUMED

Add: Direct/Manufacturing/operational expenses

Electricity
Petrol/Diesel/Lubricants to machinery
Repairs/Testing/Calibration to machinery
Wages & employer cont. To PF/ESI
depreciation on machines
R/M Abnormal Loss(if)
Worker Compensation

Total Cost of Production

CALCULATION OF PRODUCTION VALUE OF FINISHED GOODS

Total Cost of Production
Less :saleable Value of By-Products produced Qty
 By Product-1 14
By Product-2 19

Total Cost of production for calculating Finished Goods

Average Cost Per Unit
ITEMS QTY
Finished Goods-1 118
Finished Goods-2 110
228
Total Consumption Qty 294
Total Production Qty 228
 Rate Amount Total

52.00 5200
55.56 2500
10.00 220
15.00 150
5.00 20
280
110
115
8595

53.33 3200
49.09 5400
11.00 220
12.33 111
6.00 18
104
9053

51.92 3252
49.09 1963.636 we assume that those consumables
11.00 22 which are not countable by factory
STORE DEPARTMENT have been
12.33 74
consumed upto 90%
6.00 6
38.4
55
60
5471.036

12176.96

190
50
55
28
15
0
0
338

12514.96

N VALUE OF FINISHED GOODS

12514.96
rate Amt
 21 294 1.5 qty is
19 361 burning/normal loss
during production
655 process
Total 11859.96
15293.11
67.08
effective rate Cost Percentage
67.94 7914.856 51.75%
68.00 7378.255 48.25%
15293.11