Cost sheet

A cost sheet is a statement that builds up a product or job's cost step by step, prime cost, works cost, cost of production and cost of sales, showing profit or loss on that job or period.

ByHoang TruongUpdated July 5, 2026

See it move

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A cost sheet builds cost up one layer at a time. Harlow Fabrics starts from prime cost of €90,000, adds €18,000 factory overheads to reach works cost of €108,000, then €12,000 admin overheads, then €10,000 selling overheads, reaching cost of sales of €130,000 against sales of €160,000, a €30,000 profit.

Where it fits

SubjectCost AccountingCoreTopicProduct Costing & Cost of Goods ManufacturedCore

The formula

LaTeX

\text{Works cost} = PC + FOH

Variables

$P C$: Prime cost (€)
$F O H$: Factory overheads (€)

The second running subtotal on a cost sheet, found immediately after prime cost.

LaTeX

\text{Cost of sales} = WC + AOH + SOH

Variables

$W C$: Works cost (€)
$A O H$: Office & administration overheads (€)
$S O H$: Selling & distribution overheads (€)

The final running total on a cost sheet, from which profit is found by deducting it from sales.

Check yourself

PracticeCORE

Bellrose Ceramics is preparing a cost sheet for the month. Direct materials €42,000, direct labour €18,000, direct expenses €2,000, factory overheads €14,000, office and administration overheads €9,000, selling and distribution overheads €7,000. Sales for the month are €100,000. What profit does the cost sheet show?

Select an answer to check your understanding.