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 NUMBER OF UNITS PRODUCED = No of Units Sold- Op Stock of Finished Goods( Units)- Cl Stock of Finished Goods( Units) COST OF DIRECT MATERIALS CONSUMED Op Stock of RM+Purchase of RM+Expense on Purchase- Returns- Cl Stock of RM- Scrap Value if any                              or PRIME COST- Direct Labour- Direct Expense or  No of Units Produced x Direct Material Cost per unit DIRECT LABOUR COST No of Units Produced x Direct Labour Cost per unit Or PRIME COST- Direct Material- Direct Expense PRIME COST OR DIRECT COST FORMULA DM+DL+DE OR Works Cost- Works OH- Op Stock of WIP+Closing Stock of WIP

 Unit costing or output costing is that technique of cost accounting in which the cost of production of a unit of output and total cost of production is ascertained. This method is also called the single costing because the process of production comprises only one stage or a single operation.  For example: brickwork, paper mills, milk dairies etc.  DEFINITION Walter W. Bigg, “ Unit costing method is a method of costing applied to ascertain the cost per unit of a production where standard and identical products are manufactured.” J. R. Batliboi, “Unit costing or output costing may be defined as, Single or output cost system is used in business were a standard product is turned out and it is desired to find out the cost of a basic unit f production.”   NAME AND COST UNIT OF SPECIFIC INDUSTRIES: Following are the cost unit of some specific industries: Name of Industry Cost Unit 1 Textile Industry Per Metre 2 Brick Industry Per 1000 Bricks 3 Milk Industry Per Liter ...