1. Stock of Raw materials 2. Stock of finished goods 3. Stock of work in progress Stock of Raw materials: In order to get the cost of material consumed, opening stock of material is added to the cost of raw materials purchased and closing stock of raw materials is deducted from it. Opening stock of raw materials XXX Add Purchase of RM XXX XXX Less closing stock of RM XX Cost of materials consumed xxx Stock of Work-in-progress: The Cost of work in progress are adjusted at the work cost stage Prime cost Add works OH XXX XXX Xxx Add opening stock of WIP XX XXX XXX XX Less closing stock of WIP Works cost XXXX Stock of finished goods: It is adjusted immediately after ascertaining f production XXX Cost of production Add opening stock of FG XX S48 XXXX Less closing stock of FG XXX Cost of Goods sold XXXX Illustration 1 From the following particulars prepare a cost sheet for the month of March 2008, Rs. Stock in hand 1 March Raw materials 26,000 Finished goods 18,300 9.200 Work in Progress Stock on hand - 31" March Raw materials Finished goods Work in Progress Purchase of of Raw materials on purchases Indirect wages Sale of finished goods Chargeable expenses Factory overheads Administration OH Selling and Distribution OH Carriage on Direct wages 27.200 16,700 10,100 23,000 1,500 18,500 1.000 76,000 2.200 9,500 4,000 5.200