Workshop Accounts

ON COST
 In addition to the direct expenditure on labour and material that is incurred on jobs there are certain items of expenditure in the shops of the workshops as a
whole which cannot be charged direct to the cost of articles manufactured or work done. Such of the charges are known as ‘On cost’ charges. These ‘On
cost’ charges are known as :-
 General on cost
 Shop on cost
 Proforma on cost
 These on cost charges are discharged separately for labour and stores amongst the various jobs on the basis of predetermined percentages of the direct labour
charge.
General on cost Shop on cost Proforma on cost

It denotes all on cost other than the proforma on It includes all on cost incurred within an The term ‘Proforma on cost’ commonly known as
cost that is incurred in common with more than one accounting unit such as shop or department or a indirect charges is intended to include all on costs
shop of dept. Within the workshop. It includes :- section which cannot be directly charged to the which are not included in the cost of work done in
works. railway workshop but which would be son
included in the commercial costing. This consists
of charges, which are either charged off directly to
final heads of working expenses or of charges not
included in the working expenses of the railway. It
thus includes the following items of expenditure :-
 Leave, sick, hurt & holiday pay paid to  Wages, O.T. etc. workshop apprentices  Share of the expenses of the Administrative
workshop’s employees whose wages are not attached to particular shops, chargemen, Departments such as Executive, Accounts &
charged to shop such as yard establishment. chargehands, mistries, unskilled labour except Stores etc.
when employed as direct labour, tallymen,
stores men, belties & oilers & of shop clerks.
Also wages of journey-men, employed on
supervisory duties.
 Wages, overtime, etc., of staff such as  Leave pay, idle time, sick hurt & holiday pay,  General Administration including superior &
workshop apprentices, tool-keepers not compensatory allowances & arrear pay & pay subordinate supervision & office establishmen
attached to shops. allowed to men on volunteer duty & in sports. t of all Service Departments including Rly.
Security Force.
 Freight charges that cannot be directly charged  Shop scrap (credit) i.e., scrap, which cannot  Provident Fund Contribution / Pensions
to jobs. be allocated to jobs. payable by Government.
 Electrical power which its is not possible to  Stationery & forms used in shops.  Payment made under the Workmen’s
allocated to shops. Compensation Act.
 Hydraulics & pneumatic power & gas that  Defective & spoilt work in the case of  Gratuities & special contribution to S.R.P.
cannot be allocated to shops. experimental work. Fund.
 Wages paid in lieu of notice to workshop staff  Power charge, whether electric, pneumatic gas  Annual contribution to Staff Benefit Fund.
not charged to shops. or hydraulic which can directly be allocated
to shops.
 Replacement of articles stolen or lost.  Wages of operators of automatic machines  Depreciation of plants & buildings.
not otherwise allocated.
General on cost Shop on cost Proforma on cost
 Expenditure on apprentices school & hostel.  Wages, overtime, etc., of men employed on  Repair of machinery & plants other than those
mechanical transport in the shop. charged to the cost of manufacture & repairs
to building yards.
 Cost of Railway Security Force staff.  Wages, overtime, etc., of all general labour in  Education grants to works staff.
shops including those employed in transport
 Working expenses of cranes & shunting  Hammer driving in shop.  Cost of material & labour expended on the
engines, lorries auto trucks, etc., provided for maintenance of electric lighting throughout
the use of the workshop when not chargeable to the workshop, all fittings, lamps, switches
shop on cost. etc., & the cost of cables & wiring from main
distribution board.
 Working expenses of Central works pumping  Consumable stores for shop use such as-  New Minor Work.
plant.  Oil for lubrication of machinery &
shafting oil & waste for cleaning
machines.
 Sponges, emery & glass cloth, soap,
soda, pumice acid, glue & choamosis
leather.
 Experimental work, when not more  Charges for coal & coke in smithies.  Interest of total costs ( whether charged to
appropriately charged direct to job itself. Capital Development Fund or OLWR ) of
buildings, plant & machinery & on all other
fixed assets.
 Water charges that cannot be allocated to  Lighting charges in shops.
shops.
 Wages, O.T. etc., of general labour in yards &  Fines creditable to works.
shunters.
 Sanitary arrangements in workshop.  Supervision allowance.
 Messenger’s wages uniforms, etc. when not  Wages etc., of shop messenger.
allocable to shops.
 Cosumables stores for general use not allocable  Working expenses of cranes & shunting
to shops. engines, lorries, auto trucks, traverses etc.,
which can be charged to shop on cost.
 Maintenance of Mess-room.  Small tools for shop use.
 Yard lighting.

Workshop Accounts

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ON COST

General on cost Shop on cost Proforma on cost

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