Assets & costing · Calculator
Manufacturing cost
Work from material consumption and factory costs to cost per finished unit.
EXAMPLE
Your results and working
| Cost component | Amount |
|---|---|
| Direct material consumed | ₹29,00,000.00 |
| Direct labour | ₹6,00,000.00 |
| Direct job work | ₹1,50,000.00 |
| Power, allocated overhead and production packing | ₹8,00,000.00 |
| Add: opening WIP | ₹2,00,000.00 |
| Less: closing WIP | ₹2,50,000.00 |
What this result includes
Use one consistent production period. Cost per unit assumes comparable finished units and excludes unfinished quantities already reflected in closing WIP.
Factory overhead should be appropriately allocated; identify normal capacity, abnormal waste, idle costs, by-products and scrap recoveries separately. This simplified total does not decide which costs may be capitalised.
Exclude recoverable GST from costs. Selling price requires a separate review of selling / administration costs, finance costs, applicable taxes and margin.
For mixed products, allocate costs by an appropriate product or equivalent-unit basis before using this unit cost.