Presentation on theme: "Presenter Robby Adrian Joesoef. Costs that associated with the production function or activity processing raw materials into finished goods."— Presentation transcript:
Presenter Robby Adrian Joesoef
Costs that associated with the production function or activity processing raw materials into finished goods.
Direct Material Cost Direct Labor Cost Overhead Cost, such as: Indirect Material Cost Indirect Labor Cost Depreciation and amortization of company fixed asset Repair and Maintenance of factory assets Cost of energy (electricity and water)
Cost of production were collected in each process with certain period and Cost of Goods Manufactured for one unit is calculated by dividing the total cost of production in particular process, during certain period, with the number of products that produced from that process during the period.
Determine the selling price Monitoring the production cost Calculate the profit or loss periodically Determine the cost of inventories of finished goods and goods in the process, presented in the balance form
The system can only cover calculation of the cost of materials based on Bill of Material Record of overhead cost, direct labor cost can not be processed by the system The system can not generate report that relating to calculation of Cost of Goods Manufactured
Costs incurred in the production process will be difficult to trace Cost of Goods Manufactured become inaccurate Make the company difficult to analyze problems if problems occur
Purchasing System Production System Overall the Old System
How to Solve It ?
The Calculation of Cost of Goods Manufactured System
Scope User Privilege Master Data Recording data of Bill of Material Recording data of standard of how long machine is use Integrated system as shown in Picture 1.1.
Scope (Continue) Picture 1.1. Design of Integrated System
Scope (Continue) Recording production cost Stock card The calculation of cost allocation charged to each product The calculation of cost of machine depreciation using Straight-Line Method Method of taking raw materials using First In, First Out Method
Scope (Continue) Recording of return of purchases when raw materials received damaged The calculation of the cost of goods manufactured of a product using the Process Costing Method Generate Report Applications created with Microsoft Visual Studio. Net 2005 The database used is Oracle 10g
Goals To obtain accurate information To help company in decision making To calculate the Cost of Goods Manufactured