Product costing
Dear all,
In my client place, the client wants the costing of the product based on the following parameters:
Raw Material Cost(which includes Packing cost) xxxxx
Add: Raw Material Overhead xxxxx
Prime Cost xxxxx
Add: Factory Overheads
Factory Rent xxxxx
Factory Power xxxxx
Indirect Material xxxxx
Indirect Wages xxxxx
Drawing Office Salary xxxxx
Factory Insurance xxxxx
Factory Asset depreciation xxxxx xxxxx
Add: Administration overhead
Office Rent xxxxx
Asset Depreciation xxxxx
General charges xxxxx
Audit Fees xxxxx
Bank Charges xxxxx
Other Office Expenses xxxxx
Cost of Goods Manufactured xxxxx
The thing is the items that are included in the factory overhead and admin overhead, we can take it as percentage but the client wants the actual cost of those expenses to be captured while doing product costing. For example, some portion of the actual cost of factory rent, factory power is to be captured while doing product costing.
How to do?
please suggest me.
Thanks & Regards,
AR