The cost price is those monetary costs that are spent on the production and sale of products.
Finding the cost of production is quite simple, you just need to know what actual data the company has.
It is necessary
Actual production data for the reporting period
Instructions
Step 1
Choice of counting method.
When calculating the cost of production, it is possible to use two approaches: calculation by economic elements or by calculation items. The following economic elements stand out:
1) Material costs, i.e. the cost of the main raw materials from which the products are made;
2) Remuneration of workers;
3) Social security contributions;
4) Depreciation of fixed assets;
5) Other costs.
Step 2
The disadvantage of this method of calculating the cost is that the cost of one specific type of product is not calculated, but the cost of the entire batch of goods is calculated. Therefore, there is a method for calculating the cost by items of the calculation. There are several of them:
1) Raw materials / materials used;
2) Semi-finished products purchased from outside;
3) Used energy and fuel in the production of products;
4) Basic and additional wages of workers involved in production;
5) Social security contributions;
6) Wear of the used tools and various devices;
7) Depreciation of technological equipment;
8) Workshop costs;
9) General plant costs;
10) Non-production costs.
Step 3
The summation of items 1 through 8 expresses the workshop cost of production. If you add the last two points, then the result is the total cost of production.
It is worth noting that non-production costs are understood as the costs of transportation and sale of manufactured products, as well as the cost of warranty service for products, if such is implied by production.
