Opening stock of raw material Add purchases Add expenses involved in the purchases of raw material Less closing stock of raw materials Work-in-progress represents the quantity of semi-finished goods at the time of the preparation of the cost sheet. It represents cost of materials, labour and manufacturing expenses to-date. Work-in-progress may be shown in the cost sheet either immediately after the prime cost or after the calculation of the factory overheads, as shown in the specimen cost sheet. Finally, in respect of stock of finished goods, adjustments have to be made where opening and closing stock of finished goods are given. This is done, as shown in the specimen cost sheet, by adding opening stock of finished goods to the cost of production arrived at on the basis of current figures and reducing the closing stock of finished goods from this total. Let's explore these aspects more clearly through the following illustrations: Tenders And Quotations: While preparing tenders or quotations, manufacturers or contractors have to look into the figures pertaining to the previous year as shown in the cost sheet for that period. These figures have to be suitably [11 modified in the light of changes expected in the prices of materials, labour, etc., and submit the tender or quotation accordingly. 5.3.6 Illustrations Illustration 1: Prepare the cost sheet to show the total cost of production and cost per unit of goods manufactured by a company for the month of july 2012 Also find out the cost of sales. Stock of raw materials 1-7-2012 3,000 Raw materials purchased 28,000 Stock of raw materials 31-7-2012 4,500 Manufacturing wages 7.000 Depreciation of plant 1,500 Loss on sale of a part of plant 300 Factory rent and rates 3,000 Office rent 500 General expenses 400 Discount on sales 300 Advertisement expenses to be fully charged 600 Income tax paid 2,000 The number of units produced during july, 2012 was 3,000. The stock of finished goods was 200 and 400 units on 1-7-2012 and 31-7-202 respectively. The total cost of units on hand on 1-7-2012 was Rs.2,800. All these have been sold during the month