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Cost accounting

Manufacturing Cost Sheet Calculator: Prime Cost to Profit

Reviewed by CA Nikhil Gupta · Last reviewed 11 October 2026

Paste ledger totals (materials, labour, overheads, stock and sales) to get prime cost, cost of production, cost of goods sold, cost of sales and profit.

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The fields start with sample figures. Replace them with your own; nothing is sent to a server.

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How the calculation works

  1. Prime cost = direct material + direct labour.
  2. Cost of production = prime cost + factory overhead + opening WIP − closing WIP; cost of goods sold = cost of production + opening finished goods − closing finished goods.
  3. Cost of sales = cost of goods sold + administration and selling overheads; profit = sales − cost of sales.

Background and professional notes

The Finin2min 2-minute explanation

Turn categorised manufacturing ledger totals into prime cost, factory production cost, cost of goods sold, cost of sales and operating profit with stock movement.

Worked Indian example

Direct material ₹5 lakh, labour ₹3 lakh, factory overhead ₹2 lakh, opening WIP ₹40,000 and closing WIP ₹60,000 produce an illustrative cost of production of ₹9.8 lakh.

Exact calculation logic

Prime cost = materials + labour. Add factory overhead and opening less closing WIP for production cost. Then add opening less closing finished goods and distribution/administration cost for cost of sales.

What the result does not certify

One-period cost accounting reconstruction, not an Ind AS 2 inventory valuation certificate or CAS audit. Classify ledger heads from the source system before uploading amounts.

Frequent errors and compliance checks

Do not count overhead twice or infer inventory values from spending figures. Selling and administration costs may require a different treatment under statutory financial statement inventory measurement rules.

Assumptions and what this calculator does not cover

Frequently asked questions

Which ledger heads are accepted?

direct_material, direct_labour, factory_overhead, admin_overhead, selling_overhead, opening_wip, closing_wip, opening_fg, closing_fg and sales, one head and amount per line.

Can raw trial balance figures be pasted directly?

No. First map the ledger into the stated cost categories.

Does this establish inventory cost under Ind AS 2?

No; accounting eligibility and abnormal cost exclusions require separate review.

How are work-in-progress balances used?

Opening WIP increases and closing WIP decreases the period’s cost of production.

Official sources and further reading

Rates and rules were checked against these sources on 11 October 2026. Notifications and standards change; confirm on the official site before you file, book or advise.

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Educational working tool. Results follow the scope and assumptions above and the figures you enter; they are not tax, audit, legal or accounting advice. Tax and accounting treatment depends on facts and on the law or standard in force for the relevant period, so verify the official source or consult a professional before you rely on a result.

Last reviewed: 11 October 2026

Guides that use this calculator

Background, worked examples and the rules behind these numbers.