Calculation of Production Cost Analysis Using Full Costing to Set Price on Flower UD Jaya

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Progress Conference Volume 2 Number 2, August 2019| 158

Calculation of Production Cost Analysis Using Full Costing to Set Price on Flower UD Jaya

Dedik Prasetyo¹, Emmy Ermawati², Neny Tri Indrianasari³ STIE Widyagama Lumajang

Abstract

Analysis of the calculation of cost of goods manufactured using the full costing method in order to Determine the selling price of the UD. Kembang Jaya UD is a home-based industry engaged in snacks. All activities within the company should be supported by good management in managing information sources so that the policies implemented a by the leadership will be optimal in the process of implementing the results that will be Achieved in the long term. One of the important things that must be Considered by management in managing a company is Determining the cost of production. Determination of cost of production is very important considering the results of information from the calculation of cost of goods manufactured to Determine the selling price that will be presented in the financial statements,

Keyword: Cost of production, selling price

INTRODUCTION

The Company is one of the economic agents established to earn profits to develop their business and won a very tight competition, it encourages businesses are required to develop services and other technical matters in order to win the competition in the business world. In an era of intense competition arises many challenges to be faced by the company, one satutantangan that will appear is related to costs or expenses necessary to control regularly and structured. To face the competition of a company or the head of the company should be required to continue to be creative and innovative in the products produced by the company so that consumers are satisfied with the products,

All activities within the company should be backed by good management in managing the sources of information so that the policy implemented by the leadership to be optimal in the process of implementation of the result will be long-term. One of the important things that must be considered by the management in the management of the company is determining the cost of production.

Cost of production is the sacrifice over economic resources as measured in units of money that have occurred or are likely to occur for profit.

Basically determining the cost of production is aimed at:

a. As a measure in determining the company's profits to be obtained.

b. As a means to evaluate whether it has been effective and efficient running of production activities at the company.

c. As a basis for determining the selling price of a product before it is marketed.

Determining the cost of production is the extremely important considering the results of the information on the calculation of the cost of production determines the selling price will be

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Progress Conference Volume 2 Number 2, August 2019| 159 presented in the financial statements, there are three aspects of the charge in the cost of production is to be calculated carefully to avoid mistakes presenting information three such fees are : raw material costs, labor costs and factory overhead, the third such costs should be determined appropriately in both the processing and recordation.

Determining the cost of production can be determined by two methods namely method of variable costing and full costing. Variable costing method is a method of determining the cost of production by charging fees on the production costs alone sedangan variabelI full costing is a method of determining the cost of production by imposing production costs to all costs fixed and variabelI.

But the method most frequently used and most effective is this costinghal full method because this method \ include all costs which are used for production so that the calculation results are very complete.

METHODS

This research uses a quantitative descriptive type of research, the research compiled in order to provide an answer to a problem and get more extensive information about a phenomenon by using a quantitative approach stages. Early research done by observation and evaluation of research and manufacturing framework in advance. In the implementation of the study design included also make experiments or observations, and also choose variabelI measurements, techniques and procedures, data collection instruments, data analysis and research reports.

In conducting this research data analysis technique used is descriptive quantitative method that describes the design of determining the cost of production of the team to determine the selling price.

Quantitative descriptive method required in writing is the method of full costing and variable costing. To know the weaknesses of calculating the cost of production at the company using the comparative method is a method of data analysis by comparing a comparable problem here is the practice that runs the company using the cost of production with the literature and references of certainty to recommend the company.

The steps of the data analysis techniques in this study are:

a. Collect data companies to the problems examined.

b. Using the theoretical foundations related to the problems examined.

c. Comparing the data obtained from the company with the theory the researchers used.

d. Analyzing the measures taken by the company in determining the cost of production.

e. From the results penenlitian then draw conclusions and give advice to the company.

RESULTS AND DISCUSSION

The results of data collection conducted by researchers at UD. Kembang Jaya researchers get the data has been taken from the form of reports and documentation and interviews. In its activities the company has a classification of costs as follows.

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Progress Conference Volume 2 Number 2, August 2019| 160 Table 1 Production costs in a period of 3 years

Source: Results of data processing 2019

After sifting through these fees in accordance with the nature of the next step is we will calculate the cost of production with a full costing method

Table 2 Calculation of the cost of production method of full costing 2016

Information Nominal (Rp)

Raw material Direct labor costs

VariabelI factory overhead costs Fixed factory overhead costs

340 800 000 25.92 million 31.57 million

13,000,000

Cost of products 385 370 000

Source: Data processed in 2019

Table 3 Calculation of the cost of production method of full costing 2017

378 450 000 25.92 million 32.85 million 13,000,000

Table 4 Calculation of the cost of production method of full costingtahun 2018

452 070 000 25.92 million 32.92 million 13,000,000

types of fees 2016 2017 2018

Cassava Oil Wood seasoning Plastic Cardboard Lebel Lakban Labor costs electricity Water

Depreciation of fixed assets telephone charges

Miscellaneous expense

324 million 9,000,000 7,200,000 600,000 3.85 million 6,000,000 220.000 3,000,000 25.92 million 15,000,000 10.2 million 3,500,000 1,000,000 1,100,000

360,000,000 10,500,000 7,200,000 750,000 4.65 million 6,000,000 200,000 3,000,000 25.92 million 18,000,000 12,000,000 1,000,000 1,000,000 1,100,000

432 million 10.8 million 8,400,000 870,000 4.65 million 6,000,000 220.000 3,000,000 25.92 million 18,000,000 12,000,000 1,050,000 1,500,000 1,260,000

Total 410 590 000 451 320 000 525 670 000

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Progress Conference Volume 2 Number 2, August 2019| 161 From the calculation of the cost of production of table 4:10, 4:11, 4:12 at the top then we can know the production cost Kembang Jaya UD. 2016 Cost of production issued by the company amounted to USD385,370,000.00 while in 2017 Cost of production UD Kembang Jaya is Rp424.300.000,00.

2018 Cost of production UD Kembang Jaya Rp 498.49 million of the flashy stuff and jumped in 2018 is the cost of raw materials soared that affect the cost of production of the year 2018. It is reasonable happened because the price of raw materials that are sometimes biased increased due to several facto obstacle.

The method the researchers used in calculating the selling price is cost plus pricing method full costing approach. The steps are as follows:

1) In calculating the selling price based on the theory, which is used overhead costs are overhead costs are calculated based on rates charged. BOP tariff rate is calculated using the formula:

= 136 840 000 84130

= 1626.53037

The amount of overhead costs charged calculated by multiplying the tariff rate of factory overhead cost per unit by unit of production, the result of the calculation is as follows:

Table 5 Estimated BOP Year

Budget production

volume

Estimated BOP month

2016 27 230 44,290,422

2017 28 900 47,006,728

2018 28000 45.54285 million

Total 84130 136 840 000

Once known how many of the estimated BOP per satunnya then we can only estimate the full costs as follows:

Table 6 Calculation of the estimated total cost Year The cost of

raw materials (RM) (A)

BTKL (USD) b (B)

Estimated BOP (USD) (C)

ADM and general costs (US

$) (d)

marketing costs (USD) (E)

The full cost (USD)

(F = a + b + c + d + e) 2016 340 800 000 25.92

million

44,290,422 800,000 300,000 412 110 422 2017 378 450 000 25.92

million

47,006,728 800,000 300,000 452 476 728 2017 452 070 000 25.92

million

45.54285 million

960,000 300,000 524 792 850

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Progress Conference Volume 2 Number 2, August 2019| 162

Total 1.17132

billion

77.76 million

136 840 000 2.56 million

900,000 1.38938 billion Source: Results of data processing 2019

The full cost of raw material costs added to the cost of direct labor, BOP estimates, ADM and general costs, marketing costs.

2) After calculating the full costs and estimated manufacturing overhead, then the next step is to calculate the expected profit:

Table 7 Calculation of expected profit Year Full cost budget % Of the full

fee

Profit yng diharaokan

2016 412 110 422 30% 122 237 977

2017 452 476 728 33% 147 357 231

2018 524 792 850 38% 198 223 334

Total 1.38938 billion 100% 1.38938 billion

Source: 2019 data though results 3) Calculate the amount of markup

Table 8 Calculation of cost mark up Year Expected

profit

Non- production costs

production cost mark up%

2016 Rp122.237.977 Rp1.100.000 Rp411.010.422 30%

2017.0 Rp147.357.231 Rp1.100.000 Rp451.376.728 33%

2018.0 Rp198.223.334 Rp1.260.000 Rp523.532.850 38%

Total Rp467.818.541 Rp3.460.000 Rp1.385.920.000 34%

Source: Results of data processed in 2019

After the mark-up is known we can calculate the selling price in accordance with the method of cost plus pricing approach full costing

Table 9 selling price to cost plus pricing method full costing approach Year Production

cost marks up selling price production volume

selling price per KG

2016 411 010 422 123 337 977 411 037 652 27 230 15 095 2017 451 376 728 148 457 231 451 405 628 28 900 15 620 2018 523 532 850 199 483 334 523 560 850 28000 18 699 Total 1.38592

billion 471 278 541 1386004130 84130

16 475 Source: 2019 data though results

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Progress Conference Volume 2 Number 2, August 2019| 163 Table 10 Comparison of the selling price of the company and the selling price plus pricing

metodecost full costing approach

Year

The selling price of the company

Hrga selling full costing method

Difference

2016 15000 15 095 95

2017 15500 15 620 120

2018 18500 18 699 199

The result of the calculation of selling prices according to the company and according to the calculation method of cost plus pricing approach full costingseperti on the table 4:19 shows that the difference between the selling price is not much different in 2016, the difference is only 95 rupiah, in 2017 the difference between 120 rupiah and 2018, the difference between 199 rupiah it can be analyzed that the company in determining the selling price has been pretty good considering all the costs incurred in operating activities has increased in every year but determining the selling price of the product following the operational costs.

CONCLUSIONS

Penilitian series of results that have been undertaken that the cost of production with a full costing method greatly affect the selling price generated with precise calculation produced the selling price to be right and the resulting profit to be optimal. The sale price produced by the method of cost plus pricing approach full costing is a calculation that has been appropriately applied in companies such as UD Kembang Jaya for activities whose operations are very complex, with their calculated BOP estimates and calculations in which there are marked up the desired profit companies

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