Calculation of current costs for production and sales of products

Data on the current costs of production and sales of products based on the results of previously completed sections, issue in table 11.

Table 11 – Production costs (per annual output)

Cost elements Amount, thousand rubles Specific weight, %
1 Material costs 306.2588 8.80
2 Remuneration 1367.718 39.31
3 Social contributions (30% of line 2) 355.6065882 10.22
4 Depreciation 1258.272 36.17
5 Other costs 191.3566436 5.5
Total current production costs 3479.2117

Material costs were calculated in table 3, wage fund – in table 10, depreciation – in table 7, other costs are taken at the level of 5.5% of the total production costs.

Since the schedule for the implementation of work involves an increase in the volume of output, it is necessary, by highlighting the variable and constant parts in the composition of costs, to calculate the cost per unit of output and all output for the period of development and full utilization of production capacity.

Calculation of the need for working capital

The calculation of the need for working capital requires accurate data on the conditions for the supply of materials, the organization of settlements with suppliers, stock standards and many other data.

For our enlarged calculation, we use the direct method to determine the need for working capital when creating inventories of raw materials, materials, auxiliary materials, spare parts, fuel (let’s make a calculation in table 14) and for all other components.

Table 12 – The cost of annual output, thousand rubles

Cost elements Development Full use of power
Total Including Total Including
conditionally variable conditional post. conditionally variable Conditional post.
1 Material costs, total, Including: 306.2588 283.2894 22.9694 731.1929 708.2235 22.9694
1.1 Raw materials, components, purchased semi-finished products; 260.3200 260.3200 X 650.8000 650.8000 X
1.2 Supporting materials; 15.3129 4.5939 10.7191 22.2038 11.4847 10.7191
1.3 Fuel, energy from outside. 30.6259 18.3755 12.2504 58.1892 45.9388 12.2504
2 Remuneration, total, Including: 1367.7176 930.0480 437.6696 2762.7896 2325.1200 437.6696
2.1 Key workers; 930.0480 930.0480 X 2325.1200 2325.1200 X
2.2 Auxiliary; 109.4174 X 109.4174 109.4174 X 109.4174
2.3 Managers; 136.7718 X 136.7718 136.7718 X 136.7718
2.4 Specialists; 136.7718 X 136.7718 136.7718 X 136.7718
2.5 Employees; 41.0315 X 41.0315 41.0315 X 41.0315
2.6 Other personnel. 13.6772 X 13.6772 13.6772 X 13.6772
3 Social contributions 355.6066 241.8125 113.7941 718.3253 604.5312 113.7941
4 Depreciation charges 1258.2720 X 1258.2720 1258.2720 X 1258.2720
5 Other costs 191.3566 X 191.3566 191.3566 X 191.3566
Total cost 3479.2117 1455.1499 2024.0618 5661.9365 3637.8747 2024.0618

Table 13 – Costs per unit of production, rubles / unit.

Cost elements Development Full use of power
Total Including Total Including
conditionally variable conditional post. conditionally variable conditional post.
1. Material costs 765.6471 708.2235 57.4235 731.1929 708.2235 22.9694
2. Pay 3419.2941 2325.1200 1094.1741 2762.7896 2325.1200 437.6696
3. Deductions for social needs 889.0165 604.5312 284.4853 718.3253 604.5312 113.7941
4. Depreciation charges 3145.6800 X 3145.6800 1258.2720 X 1258.2720
5. Other costs 478.3916 X 478.3916 191.3566 X 191.3566
Total 8698.0293 3637.8747 5060.1545 5661.9365 3637.8747 2024.0168

The need for working capital for the creation of stocks is determined by the standard of production stocks:

N pz u003d Q day (N mc + N pz + N strz ) u003d Q day N c ,

where Q day is the average daily consumption of materials;

N tz – the norm of the current stock, days;

N pz – the norm of the preparatory stock, days;

N strz – safety stock rate, days;

N s – stock rate, days.

We will take the number of days the enterprise works in a year on the basis of a 5-day working week (i.e. 260 days a year).

(Q days = annual consumption / number of days the enterprise operates)

Table 14.1 – Calculation of the need for working capital as part of inventories (development).

Name of components in the composition of reserves Annual consumption, thousand rubles Average daily consumption, thousand rubles / day Stock rate, days Need, thousand rubles
1 Basic materials 260.3200 1.0012 30.0369
2 Supporting materials 15.3129 0.0589 3.5338
3 Fuel, energy from outside 30.6259 0.1178 7.0675
And t o g o : 306.2588 1.1779 X 40.6382

Table 14.2 – Calculation of the need for working capital as part of inventories (full use of capacity).

Name of components in the composition of reserves Annual consumption, thousand rubles Average daily consumption, thousand rubles / day Stock rate, days Need, thousand rubles
1 Basic materials 650,800 2.5031 75.0923
2 Supporting materials 22.2038 0.0854 5.1239
3 Fuel, energy from outside 58.1892 0.2238 13.4283
And t o g o : 675.8160 2.8123 X 93.6445

For the calculation, we consider that the duration of the turnover for the components of working capital is equal to:

– work in progress 45 days

– finished products in warehouses 10 days

– accounts receivable* 30 days

The reserve of funds (in the form of cash on hand or in bank accounts) can reach 5% of working capital.

__________________

* It is assumed that 70% of the company’s products will be sold on the terms of a thirty-day loan, and 30% – without a loan. The duration of the documents in the calculations – 2 days.

Table 15 – Calculation of the need for working capital (before filling out the table, calculate the price of the enterprise in section 7)

Components of working capital Need, thousand rubles
Development Full use of power
1 Inventory 40.6382 93.6445
2 Work in progress 327.5888 553.2516
3 Deferred expenses (5% of the total) 43.9450 74.1621
4 Finished products in warehouses 133.8158 217.7668
5 Accounts receivable 288.9679 470.2553
6 Cash 43.9450 74.1621
And t o g o : 878.9008 1483.2424

The turnover ratio of working capital (Cob) shows how many turnovers were made by working capital for the analyzed period (quarter, half year, year).

Volume of products sold for the period Average balance of working capital for the period

Cob



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