The total cost of production takes into account the costs of production and sales of products, therefore this concept is used only when calculating marketable products. The definition of this value is used in planning and analyzing the activities of an enterprise.
Instructions
Step 1
Determine the general production costs of the enterprise, which include the costs of maintaining the main and additional production facilities of the company. Take into account the costs of maintaining and operating equipment and machines, calculate depreciation charges.
Step 2
Determine the costs of repairing fixed assets and other property of the enterprise that are involved in production. Calculate your insurance, heating, maintenance and lighting costs. Enter into the calculation the amount of rent for equipment and premises, if any. Calculate the wages of workers who are involved in the production of products, as well as the amount of contributions to various funds.
Step 3
Calculate the total overhead that is associated with management costs. Sum up the costs of administrative and management needs; maintenance of general business personnel who are not involved in the production process; repair and amortization of fixed assets for general business purposes. Consider the costs of audit, information, consulting and other services.
Step 4
Calculate the production cost of marketable products, which is formed by summing overhead and general operating costs, taking into account changes in work in progress. If an increase was recorded, then it is necessary to subtract, otherwise add costs.
Step 5
Add non-production costs to production costs. The latter costs include packaging, storage, shipping, commissions, some tax, warehousing and other costs. Also consider emergencies and force majeure situations. Thus, the total cost of marketable products will be determined.
