Know that you won't lose ❌ How to calculate cost of sales

Know that you won't lose ❌ How to calculate cost of sales

For this article, we will present a method for calculating the cost of selling to leave each other. If you're ready, let's go see it.

👉🏻 Get to know cost of sales

Cost of sales is the amount that has been paid to purchase the goods, raw materials, which are the costs incurred in producing the goods and services sold along with the process activities. that makes the products and services ready to be sold or ready to use at a later date. Starting from product design, production, testing, storage and transportation, etc.

👉🏻 Methods for calculating the cost of sales

The calculation methods are divided according to the type of business as follows:

1. Business about buying and selling The business of selling products online. Cost of goods sold is calculated directly from the price of the goods purchased. and included with the cost of shipping to the store

2. Business related to product manufacturing which can be classified into 2 types of costs as follows:

Gor. is a type of fixed capital. This is the cost that has the same value, whether it is in the production of goods in large or small quantities, such as rent, salaries, insurance premiums, etc.

Ask. is the variable cost type. which is the cost that has changed according to the quantity of production such as labor cost, water cost, electricity cost, raw material cost, etc.

👉🏻 which can be calculated in the part of the cost as follows

1. Costs related to raw materials which is the main cost in the production of products

Let's take a simple example: raw material cost = actual usable quantity of raw materials multiplied by the purchase price of food by the quantity purchased.

2. Labor cost in production The wages are calculated as follows:

By taking a simple example, for example, a daily wage of 500 baht, an average of 1000 pieces of candy can be produced per day, so the wage per piece of candy is 0.5 baht.

3. Costs related to production costs, including fuel costs, electricity costs, and waste generated from production processes.

The electricity cost can be calculated as follows: If the factory produces products and changes to pay electricity bills in the amount of 100,000 baht and produces products in the amount of 20,000 pieces, which can be thought of, 1 product is equal to the price of 5 baht.

fuel cost of the car which can be calculated by the actual fuel price in each vehicle

in the waste generated by the production process may be used as an assessment for example A total of 10 candies are produced. There is 1 wasted candy, which is equal to 10% of the waste from the manufactured goods.

How are you? Hope this article will be useful for all readers and see you in the next article.

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