Our responsibilities under these standards are further described in the Auditor's Responsibilities for Auditing the Cost of Goods Sold and Other Cost Statements sections of our report. Key audit matters are those matters which, in our professional judgment, were of greatest importance in our audit of the cost of goods sold and other cost statements for the period under review. These matters were considered in connection with our audit of the cost of goods sold statement as a whole and in forming our opinion and views thereon.
THE KEY MATTERS RELATED TO COST OF GOODS STATES ACCORDING TO BANGLADESH COST ACCOUNTING STANDARDS (BCAS)/ICMAB'S COST ACCOUNTING GUIDELINES DIRECT MATERIAL COST. Our opinion and findings on the cost of goods sold statement and other cost statements do not cover other information and we do not express any form of assurance conclusion thereon. RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED FROM MANAGEMENT FOR THE COST OF GOODS SOLD STATEMENT AND OTHER COST STATEMENTS.
It is also responsible for the fair presentation of the Statement of Goods Sold and Other Cost Statements in accordance with BCAS/ICMAB's Cost Accounting Guidelines, The Companies Act-1994, and other applicable laws and regulations for such internal control. AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE COST OF GOODS SOLD STATEMENT AND OTHER COST STATEMENTS.
ABC COMPANY LIMITED
NOTES TO THE COST STATEMENTS
Direct material loss due to unusual circumstances (i.e. Covid-19 pandemic/unusual disaster-related costs) such as expiry date/waste/deterioration/shrinkage etc.). Work in Progress Loss due to an unusual situation (ie. Covid-19 pandemic/unusual costs related to a disaster) such as rework/defect/waste/deterioration/shrinkage etc.). Loss of finished goods due to unusual situation (i.e. Covid-19 pandemic/unusual costs related to disaster) such as expired date/waste/deterioration/shrinkage/rework etc.).
Indirect material loss due to unusual circumstances (i.e. Covid-19 pandemic/unusual costs related to disaster) such as expiry date/waste/deterioration/shrinkage etc.). Disinfection, hygiene and safety costs for unusual conditions (ie Covid-19 pandemic/unusual costs related to an accident) in the factory. Depreciation of factory equipment purchased due to unusual circumstances (i.e. Covid-19 pandemic/disaster-related abnormal costs).
Concessional benefit from payment of fixed costs for unusual circumstances (ie costs related to the Covid-19 pandemic/abnormal accidents). Salaries of operational staff (special pay, treatment/donation due to unusual circumstances (ie costs related to the Covid-19 pandemic/unusual calamities) Depreciation of IT equipment purchased due to unusual conditions (ie Covid-19 pandemics/unusual calamities , related to costs).
Salaries of sales, marketing and distribution staff: Special pay, treatment/donation in abnormal situation (ie, costs related to the Covid-19 pandemic/abnormal disaster). Loss of sales returns due to abnormal situation (i.e. costs related to the Covid-19 pandemic/abnormal disasters) such as expiration date / waste / quality deterioration / shrinkage etc.). Increased transportation expenses / Car rental / Communication expenses due to the abnormal situation (ie, costs related to the Covid-19 pandemic / abnormal disaster).
Increased distribution/outward transport/delivery/export expenses due to abnormal situation (i.e. Covid-19 pandemic/abnormal disaster related costs). Increased cost of sales, travel and transportation, and vehicle maintenance due to abnormal situation (i.e. Covid-19 pandemic/abnormal disaster related costs). Extra financing costs (short-term, long-term, lease) due to abnormal situation (i.e. Covid-19 pandemic/abnormal disaster-related costs).
Incentives/incentives/subsidies and other benefits due to unusual circumstances (ie Covid-19 pandemic/disaster-related abnormal costs). CSR for COVID-19 and other CSR activities due to unusual circumstances (i.e. Covid-19 pandemic/ abnormal costs related to disaster).
NOTES TO THE COST ACCOUNTS
Opening Stock of Raw Materials and Chemicals
Material Purchases (Imports & Transfers) .01 Cost of Direct Materials and Chemicals
Local materials 4 Purchase Price
- Purchases (For Local Materials and Chemicals)
- Closing Stock of Raw Materials and Chemicals
- Details of Employee Cost
- Direct and Indirect Employees
- Direct Expenses
- Indirect Materials, Chemicals etc
- Idle Time/Non-productive Wages Types of
- Cost of Power
- Distribution Cost of Power Generated and Purchased
Permanent Indirect Month Wise Casual Indirect Foreign Month Indirect Month Wise Indirect Transfer As per contract. Permanent Indirect Month wise Casual Indirect Foreign Month wise Indirect month wise Indirect contract transfer Employee wise cost details.
Cost of Fuel
- Cost of Factory Water Supply
- Opening Stock of Work-In-Progress
- Closing Stock of Work-In-Progress
- Opening Stock of Finished Goods
- Closing Stock of Finished Goods
- By Product (s)
- Fixed Overhead Cost Summary
- Cost of Finance
- Cost Centers
- Ratio Analysis/Performance Evaluation (Production Base)
- Material Cost Ratios
- Employee Cost Ratios
- Capacity & Efficiency Ratios
Average total number of employees 12 Cost of employees to cost of goods sold Total cost of employees/ Cost of. 10 Cost of utilities to cost of goods sold Total cost of utilities/cost of goods sold. General Expenses/Cost of Goods Sold 13 Marketing Costs to Cost of Goods Sold Total Marketing Expenses/.
15 Total fixed cost per unit Total total fixed cost / Total units of production 16 Total variable cost per.
ABC MANUFACTURING LIMITED
- Joint Cost Allocation Among Different Products at Split-Off Point Under Following any of Methods
- Administrative Expense 8. Total Cost
- Net Profit
- Percentage of Net Profit
- Allocation of Common Costs
- Loss Analysis (Spoilage, Wastage & Others)
- Production Summary (In Capacity)
- Production Line Summary Production
- Related Party Transactions
- Total Cost of Production (L=K+L)
2 Sales revenue loss due to pandemic/abnormal disaster (i.e. COVID-19): Date expired/waste/quality deterioration/shrinkage etc. Additional sales promotion exp./advertisement/discount/commission on sales to increase sales to combat the pandemic to emerge / abnormal disaster situation/period (i.e. COVID-19). 4 Increased costs of managing accounts receivable due to pandemic/abnormal disaster (i.e. COVID-19): collection costs, bad debts, short-term financing costs, etc.
2 Additional financing cost for loan default/payment delay due to pandemic/abnormal calamity (ie, COVID-19). 3 Incentives/Incentives/subsidies and other benefits due to pandemic/abnormal disasters (ie, COVID-19) 4 Grant (Government & Non-Government) due to pandemic/. 1 CSR for COVID-19 and other CSR activities due to pandemic/abnormal disaster (ie, COVID-19) F Total of COVID-19 – Unabsorbed abnormal cost.
Less: Returned to suppliers Less: Abnormal loss of materials Less: closing stock of raw material and chemicals Direct material consumed B Direct wages. During the audit under review, the necessary verifications were made within the scope of the audit task. Efforts were made to provide true and fair reports on 'Statement of Cost of Goods Sold' and other costs according to professional ethics and integrity.
A separate Management Report was provided, containing auditors' findings and recommendations to improve the systems of record keeping of cost accounting, production, inventory and assets. The Management Report also focuses on the aspects of cost control, increasing efficiency and improving the performance of production and management for the achievement of the organizational goals.
