How To Find The Cost Of Products

Table of contents:

How To Find The Cost Of Products
How To Find The Cost Of Products

Video: How To Find The Cost Of Products

Video: How To Find The Cost Of Products
Video: How To Price Your Products: Handmade Business Pricing Formula That Works 2024, November
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The cost price is the cost indicator of the production of products, which shows how much the organization has incurred the costs of manufacturing and selling a particular unit of goods. Company executives can use this indicator to identify the most and least expensive type of product, as well as reduce production costs.

How to find the cost of products
How to find the cost of products

It is necessary

  • - calculator;
  • - documents from suppliers and contractors;
  • - payroll.

Instructions

Step 1

To determine the cost of a particular product, add up all the costs that were incurred to produce it. Add up material costs. For example, a company is engaged in sewing children's clothing. For its manufacture, material (fabrics, threads, needles, buttons, zippers) was purchased in the amount of 20,000 rubles.

Step 2

In addition to the material for the manufacture of products, the company consumes energy and fuel resources, for which you also need to pay. Include the amount of costs in the cost of production. For example, a company spends 4,000 rubles in electricity for sewing children's clothing.

Step 3

Include in the cost price the payment to the labor force employed in the production of the product. Add bonuses, allowances and social contributions. For example, in the production of children's clothing, employees are involved, whose salary is 23,000 rubles, bonuses and allowances - 6,000 rubles, and deductions for social needs - 7,540 rubles.

Step 4

Add up the costs incurred to maintain and repair the equipment (general production costs). For example, sewing machines are used to sew children's clothes, the maintenance of which costs the company 8,000 rubles.

Step 5

In the prime cost, include the cost of consulting and information services, depreciation charges, that is, general business services. For example, a company spends 3,000 rubles a month on advertising.

Step 6

Then add up all the amounts received. For example, 20,000 rubles + 4,000 rubles + 23,000 rubles + 6,000 rubles + 7,540 rubles + 8,000 rubles + 3,000 rubles = 71,540 rubles. The resulting number will be the cost of production. If there were leftovers of materials in the company's warehouse, then subtract their amount from the cost price.

Step 7

If you want to calculate the cost of one unit of production, divide the resulting amount by the total number of units produced in a certain time.

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