3.Calculation procedures for production cost
The production cost is calculated on a monthly basis. Each time when it is
confirmed that all receiving, requisition/return, outsourcing purchase/return
and other inventory transaction documents of the month are input, the
"production cost" may be calculated by the following procedures. Certainly,
the calculation of production cost of a month may be delayed by one or two
week or even one or two months due to data collection, which, however, will
not affect routine operation in the future. However, to allow the computer
to provide cost information in a timely manner and the manager to
understand the status as early as possible so as to take appropriate measures,
it is preferable to minimize the delay.
I. Setup of working hours of manufacturing order
"Labor cost" and "manufacturing overhead" in the production cost is
calculated based on working hours consumed during the production process.
Hence, before calculating the production cost, it is necessary to summarize,
sort out and enter into compute through "setup of manufacturing order
working hours" the man hours and machine hours used by the manufacturing
orders of the month on the production lines. In addition, we may enter the
data of working hours input by the production lines to the manufacturing
orders of the day at any time in accordance with the "daily work report"
completed by the production lines. Although this input method is