Advice 1: How to make a costing for the product

An integral part of the financial-economic activity of any enterprise is the compilation of the costing for the products. It has monetary value and can be determined for a unit of production, and for groups of products or on certain categories of industries
How to make a costing for the product
You will need
  • - model forms of financial statements,
  • - office equipment,
  • - office supplies.
Instruction
1
To make the calculation on the product in several ways that involve calculating production costs, the cost of manufactured goods and the volume of work in progress. There are four costing methods: standard, simple (process cost), poperedniy and order.
2
For mass, batch and mass production, it is appropriate to use the statutory method of calculation. Its use should be accompanied by the obligatory drawing up the regulatory costing rules that apply at the beginning of the calendar month. It is also important to track any deviations from accepted norms in the initial stage of their occurrence. You must keep a record of any changes of existing rules, as well as timely reflect the changes in regulatory cost estimates.
3
In the preparation of the cost estimate for the product a similar method, it is important to know what the applicable rules are those which at the moment is on vacation and the shipment of products to the production of, and payment of workers for the performed work.
4
Due to the fact that significant differences between "redistribution" and "process" no, poperedniy method is often described as a simple method of calculation on the product.
This method is used in enterprises where the raw material goes through several stages, or by the same manufacturing process to produce various types of finished products.
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Be aware that this method has two ways of calculation – semi and resolubility. In the first case, the cost of each of the redistribution includes the cost of the previous one, in the second case calculates the cost of each redistribution separately.
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To make the calculation on the product to companies operating on an ad hoc basis, it is advisable with the help of other methods.
Since the term order refers to one or a small number of products, to account for each series issued card of analytical accounting code order and all the production costs and the costs aggregated in their strict compliance with the executed orders. The use of this method appropriate in the case where it is required to know the individual cost of manufactured products.

Advice 2: How to make the calculation work

Calculation – calculation of the unit cost of products, provided services or executed work. This is one of the main indicators of planning. The calculation is made for work or services that are not core business of the company and includes decoding of articles of the costs for each type of products, works or services provided for in the tax and other charges.
How to make the calculation work
Instruction
1
List of costs that you should consider when preparing the costing, their composition and distribution methods depending on the type of products, services and work performed determined by sectoral standards and regulations, as well as the methodological guidelines used in the concrete industry given the nature and structure of production. The costs that you included in the cost estimate, must be calculated according to the norms approved by management or the regulations, determined in the prescribed manner.
2
In the calculation of single lines, highlight the direct costs directly attributable to the production of goods, performance of works, provision of services and those costs that are considered indirect and are associated with the production service. The direct costs include the costs associated with the technological process of manufacturing products, cost of consumables, raw materials, costs of fuel and electricity, wages of workers and specialists, taxes and social charges from wages. The indirect costs take the cost of preparatory work, content, operation and maintenance of equipment other operating expenses – SG & a expenses.
3
Direct costs related to manufacturing technology, are determined on a unit of production or individual production step on the basis of direct accounting of timekeeping, material consumption, etc.
4
Those costs, direct rules and regulations which do not exist including costs for maintenance and production management are included in the calculation by the calculation in accordance with industry practices, and estimates.
5
The lack of calculation that serves as the basis for the application of the used tariffs and rates, may entail the application of penalties from regulatory bodies.

Advice 3: How to make costing

Calculation of the costs determined to calculate the actual or planned cost of production in order to calculate a correct assessment of the product and average cost of production. Preparation of cost estimate involved, as a rule, the economic planning Department of the company based on accounting data.
How to make costing
Instruction
1
Make a list of articles costing businesses that comply with industry instructions for accounting, planning and analysis of the production costs produced by the company. This list can include: raw materials, purchased products, outsourced services, recurrent costs, spent fuel and energy, wages, deductions in the budget, the preparation costs of production, costs of production loss in the case of marriage, selling expenses and other operating expenses of the enterprise.
2
Perform a calculation of cost of production and cost production for the total cost of the product. Take the direct costs of the cost of individual products, and at the end of the reporting period distribute indirect costs between these types of products, in accordance with the production base. Thus, it will be calculated in the total costs of production.
3
Define a standard cost estimate costs for producing one unit of output. This value determines the company's costs for the planning period, used to calculate rates for manufactured products and remains unchanged for the entire calculation period.
4
Create standard costing in case of change of source data. This indicator is used for analysis and control of production processes, calculation of actual cost of production and identify deviations from the plan.
5
Reflect according accounting actual costing of manufactured products. It reflects the expenses and losses of enterprises that were not considered in the preliminary cost estimate. The preparation of this characteristic allows to carry out planning and analysis of financial-economic activities of the organization.

Advice 4: How to make a costing for manufacturing

The ability to cost for production will be useful at home and at work. When planning the repair of apartments, building a house or manufacturing of baths, you need to calculate the cost of work and quantity of materials.
How to make a costing for manufacturing
You will need
  • the program Microsoft Office Excel.
Instruction
1
Use a calculation in the Microsoft Excel. She has easy to handle interface, which can be used not only to calculate the total amount, but also subtract, or multiply the individual counts, as well as replace one value by another.
2
Hover over a cell in the top left corner to make the table. Its designation in the program - A1.
3
Hold down the left button of the mouse and count six columns to the right (to cell F1). The number of rows must be equal to the number of items that need to be written in the estimate.
4
Type the names of the columns. The first is a sequence number. Label it a symbol of the no. The second is the name of the material or type of work. For example, when providing a service list here the points of all the actions that will be produced. And with the purchase of the hardware - name of all products. Third - the unit price of the product or service. The fourth column - number of units, times, etc.). Name it is an abbreviation of "number".
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The fifth column - the total cost estimate of works or materials. Make amount for all the items or service by the same name. Subsequently will automatically add up the total cost. To let the program to perform this operation, do the following:

- click the left mouse button and highlight the entire fifth column;

- press the right mouse button, then appears a table with the actions;

- locate the "Format cells";

- select the first tab "Number";

- specify the format - "Cash" or "Numeric".
Following the steps, calculate the total amount. Again, highlight the whole column. In the upper corner to the right, look for the symbol Σ (Sigma). Click on it to have all the numbers in the right column.
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In the sixth column place the notes. Enter here any additional information. Where to buy the right materials, colors, deadlines, phone customers, etc., So that the text information was displayed correctly, do the following:

- using the left mouse button, highlight all the lines of the sixth column;

- right click the mouse to the table with the action displayed on the monitor;

- select "Format cells";

- move to the first tab "Number";

- specify the text format.

Advice 5: How to calculate costing of services

If you decide to do business, for example, to open a Barber shop or computer shop you will need to make the costing of services. Well-written estimate will help you not only to set the right prices, but also the right to execute all documents.
How to calculate costing of services
You will need
  • - the price of consumables;
  • - the amount of payments to staff.
Instruction
1
First calculate the cost of materials. This is the most obvious, but it is actually not a simple item of expenditure. Keep in mind not only direct costs – the paint for hair (for the hairdresser), cleaning supplies (for domestic services), printing paper (photo Studio), gasoline (for transportation), etc., but also indirect, for example, removable filters for washing machines or the cartridge for printer, repair and maintenance of the car.
2
If you bought equipment for work such as computers, printers, hair clippers, vacuum cleaners, vehicle, then calculate depreciation. To do this, think about or find out exactly (in accounting statements) the life of the product and divide the price by the time in which the technique is justified. You can calculate depreciation in other ways, depending on the characteristics of your work.
3
Calculate the total and additional wages, including bonuses, deductions and other deductions, including deductions for social insurance and accident insurance.
4
Add up all the resulting amount – the cost of materials, depreciation, wages and deductions for social. insurance and take from this amount 20%. It will be your overhead costs.
5
From this amount, calculate 50% and take the sum for General expenses. Find out the total cost of adding all the amount received.
6
Add to the cost another 50% to get the planned savings. In General, you have come to the wholesale price. Increase it by another 50% and you will get the retail price. Also, don't forget about the VAT.
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Keep in mind that all expenses you expect for a certain number of services provided over a period of time. To obtain the price of the service provided at a time, divide the total amount by the estimated quantity of such services over the estimated period of time.
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