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Costing Sample
Costing Sample
Costing Sample
Excel Skills
Skills || Product
Product Costing
Costing Template
Template
About
About this
this template
template
This
This template
template enables
enables users
users to
to compile
compile product
product costings
costings for
for all
all the
the manufactured
manufactured products
products that
that are
are produced
produced by
by aa busin
busi
based
on
the
purchase
prices
that
are
entered
for
all
bought-in
stock
items
and
the
bills
of
material
(recipes)
that
based on the purchase prices that are entered for all bought-in stock items and the bills of material (recipes) that are
are co
c
product.
product. The
The template
template includes
includes aa detailed
detailed product
product cost
cost review
review sheet,
sheet, what-if
what-if cost
cost calculations
calculations for
for cost
cost analysis
analysis pp
calculations
calculations that
that can
can be
be used
used for
for requirements
requirements planning
planning or
or stock
stock usage
usage measurement.
measurement. The
The unique
unique design
design of
of this
this templ
temp
integrated
integrated costing
costing model
model for
for all
all manufactured
manufactured products.
products.
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only contain limited functionality but our templates produce complex automated reports based on limited user input.
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About
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file
This
This Excel
Excel document
document is
is only
only aa sample
sample of
of the
the product
product costing
costing template.
template. Weve
Weve created
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products
products that
that are
are produced
produced by
by aa business.
business. The
The product
product costings
costings are
are
bills
of
material
(recipes)
that
are
compiled
for
each
manufactured
bills of material (recipes) that are compiled for each manufactured
ost
ost calculations
calculations for
for cost
cost analysis
analysis purposes
purposes and
and quantity
quantity forecast
forecast
ent. The
ment.
The unique
unique design
design of
of this
this template
template enables
enables users
users to
to create
create an
an
ware
ware solutions
solutions than
than regular
regular Excel
Excel templates.
templates. Most
Most Excel
Excel templates
templates
eports
based
on
limited
user
input.
You
also
don't
need
eports based on limited user input. You also don't need advanced
advanced
input
input and
and include
include comprehensive
comprehensive step
step by
by step
step instructions.
instructions.
ed this
ted
this sample
sample to
to enable
enable customers
customers to
to view
view the
the layout
layout and
and features
features
he full
the
full version
version of
of the
the template
template can
can only
only be
be downloaded
downloaded after
after buying
buying
s template
k here
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and using
using this
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template.
Stock Codes
The first step in customizing the template for your business is to create a unique stock code for each stock component and
finished (manufactured) product on the StockCode sheet. Stock components can only be linked to a manufactured product if
a stock code has been created for the appropriate stock item.
A stock code convention that makes sense in the context of your business should be used and the stock code convention
should make it easy to identify stock items based on the stock code that is assigned to each stock item. The template can
accommodate any stock code convention but we suggest using a combination of letters and numbers. In our example, we
have used a combination of four numbers and three letters for finished products and a combination of two letters and two
numbers for bought-in and intermediate stock items.
Note: The two letters that are used in the bought-in and intermediate products assists users in identifying the type of stock for example, RM refers to raw materials, LB refers to labour and SD refers to intermediate products. Note that even though
labour is not actually a stock item, we also assign a stock code to labour cost in order to include this type of direct cost in the
product costings. The same principle can be applied in order to include other direct costs like overheads or even distribution
costs in the product costings.
Once you have decided on a stock code convention, you can create a unique stock code for each stock item that should be
included in the product costings. The StockCode sheet includes the following columns:
Stock Code - enter a unique stock code in accordance with the stock code convention that is suitable for your type of
business.
Description - enter a description of the stock item. This description should enable users to easily distinguish between stock
items.
UOM - the unit of measure (UOM) refers to the stock measurement that is used when ordering, manufacturing and counting
stock. Note that stock components are also included in the product costings based on this unit of measure. For example, if
the recipe of a manufactured product stipulates that a specified quantity in kilogram of a raw material stock component
should be added during manufacturing, it will be easier to cost the product based on a unit of measure of kilogram even
though the raw material component may be ordered from a supplier in bags. For the purpose of this template, recipe (and
therefore costing) units of measure carry more weight than the units of measure that is used by suppliers.
Purchase Price - the most important aspect of the purchase price is that it should be in the same unit of measure as the unit
of measure that is specified in the UOM column. If a stock component is ordered from a supplier in another unit of measure,
the purchase price should be converted to the unit of measure that is specified in the UOM column. Purchase prices should
be entered excluding sales tax if the sales tax amounts can be claimed back from the appropriate tax authorities.
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Bills of Material
The purpose of the BOM sheet is to create a link between stock components and manufactured products. This is
accomplished by entering the appropriate stock code of the manufactured product in column A and entering the stock code
of the appropriate component in column B. Multiple stock components can be added to a single manufactured product in
order to create a product costing which consists of multiple stock components.
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Component Stock Code - a component stock code needs to be selected from the list box in column B for each component
that is used in manufacturing the product which has been selected in column A. The product costings that are produced by
this template accommodate a maximum number of 30 components per manufactured product. The cost of a manufactured
product is calculated based on the costs of all the components that have been linked to the product on the BOM sheet.
Note: A very efficient method of adding components to a manufactured product is by copying the components from a similar
product, selecting the appropriate new product code from the list box in column A and editing the input quantities and yields
of all the components. This method will however only be efficient if components have previously been added to a similar
manufactured product on the BOM sheet.
Input Quantity - the input quantity of the stock component that is used in the manufacturing process should be entered in
column C. This quantity should be entered in the same unit of measure that is specified for the particular stock code on the
StockCode sheet (the component UOM is listed in column I).
Note: The unit of measure (UOM) of the manufactured product is listed in column G. If the unit of measure of the
manufactured product is "Units", the input quantity of the component should be sufficient in order to produce 1 unit of the
manufactured product but if the unit of measure of the manufactured product is for example "Dozen", the input quantity that is
entered should be sufficient in order to produce 12 units of the manufactured product.
Note: The yield basis should also be taken into account when determining the appropriate component input quantity. If the
yield that is entered in column D is based on an Input basis, the component quantity that is added at the beginning of the
manufacturing process should be entered in column C. If however the yield is based on an Output basis, the component
quantity that remains at the end of the manufacturing process should be entered in column C. This is because the input
quantity is divided by the yield as part of the component cost calculation.
Note: You may also want to consider entering a calculation in the input quantity column because this approach may make it
easier to determine how the input quantity has been calculated (if a calculation has been necessary). For example: if the
component unit of measure is dozen and only one unit is used in the manufactured product, the component quantity is
calculated by dividing 1 dozen by twelve. You therefore have the option of entering 0.083333 as the input quantity or you can
enter the formula "=1/12" in the input quantity column.
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Note: If there is a significant yield loss during the manufacturing process and the incorrect yield basis is used to determine
the yield that is entered in column D, the product costing of the manufactured product may be inaccurate. As we've
mentioned before, the yield basis also affects the input quantity that needs to be entered. It is therefore important to take the
yield basis into account when determining the component input quantity that needs to be entered in column C.
Example: If we use minced meat in the manufacturing of a beef burger, we have to decide on a yield basis before we can
determine the appropriate input quantity that should be specified. If our aim is to produce a 400g burger at the end of the
manufacturing process, the quantity is based on the output after manufacturing. We may know that on average 500g of
minced meat is required in order to produce a 400g burger at the end of the manufacturing process - the 500g is therefore
the Input based quantity. The manufacturing yield can therefore be calculated as 400g divided by 500g which is 80%. If we
include a yield of 80% in the product costing, we need to include the output weight (400g) as the input quantity in the costing.
The meat component cost is therefore calculated by dividing the 400g by 80% thereby effectively including 500g of meat in
our beef burger product costing. If we use the Input basis in our product costing, an input quantity of 500g and yield of 100%
should be entered (assuming that there is no meat yield loss prior to the start of the manufacturing process).
Example: Our example beef burger includes one slice of onions. With this component, we are not really concerned about the
output weight because we have already decided that only one slice of onions will be included on our beef burger. The unit of
measure of the onions component is kilogram and we therefore need to calculate the input quantity of this component based
on how many slices are included in a kilogram of onions. The quantity that represents one slice then needs to be entered in
the Input Quantity column. In principle, we are calculating the input quantity based on the Input yield basis and the yield
therefore needs to be entered as 100%. We do however know that after the slicing process is completed, 5% of the onions
that we purchased do not end up as sliced onions and is therefore lost before the start of the manufacturing process. We
also need to take this yield loss into account in order to compile an accurate beef burger product costing. A yield of 95% is
therefore entered even though we used the Input basis in determining the appropriate component input quantity.
The BOM sheet also includes 22 columns with light blue column headings. These columns contain formulas that should be
copied for all the new components that are added to the BOM sheet. The purpose of each of these columns is as follows:
Error Code - the formulas in this column display an error code if there is a problem with the data that has been entered in
any of the user input columns. This column should therefore be blank if all user input has been entered correctly. If any error
codes are reflected in this column, the errors should be investigated and rectified in order to ensure that all template
calculations remain accurate. Refer to the Error Codes section of these instructions for guidance on how to correct the
appropriate user input errors.
Product Description , Product UOM - these columns are included on the BOM sheet to enable users to view the
description of the product codes that are selected in column A and to ensure that the correct unit of measure is used when
entering component input quantities.
Component Description , Component UOM - these columns are included to enable users to view the description of the
component codes that are selected in column B and to ensure that the correct unit of measure is used when entering
component input quantities.
Component Type - this column reflects the type of component that has been selected in column B. If the component type is
"Bought-in", it means that the component is purchased from a supplier. If the component type is "Manufactured", it means
that the component is an intermediate product which needs to be manufactured.
Bought-In Price - if the component is a bought-in stock item, the purchase price of the component that is entered on the
StockCode sheet will be included in this column. If the component is a manufactured stock item, the bought-in price will be nil
and the component cost will be based on the calculations in the intermediate columns.
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Note: All the components that are added to the BOM sheet should form part of a continuous cell range. There should
therefore be no blank rows between entries otherwise all the components that are listed on this sheet may not be included in
the template calculations. The BOM sheet should be used to create and maintain the links between manufactured products
and their components - the Costing sheet should be used in order to review individual product costings.
Labour & Direct Overheads
For the purpose of compiling product costings, stock codes also need to be created for all labour, direct overheads and even
distribution costs that need to be included in the product costings. These stock codes should be seen as cost centre codes
instead of stock codes which are represented by physical stock on hand.
The appropriate labour pay rates or overhead allocation rates should be entered in the Purchase Price column on the
StockCode sheet and the appropriate production times should be entered in the Input Quantity column on the BOM sheet. A
100% yield should be entered for all labour and overhead costs.
Example: A beef burger is manufactured in a kitchen that consists of 3 staff members. The labour rate is $10.00 per hour and
a total of 400 beef burgers are produced during a shift of 8 hours. In order to add the labour component to the beef burger
product costing, we need to create a stock code for labour on the StockCode sheet (in our example data, all labour related
stock codes start with an "LB"), enter a UOM of hours for the stock code, enter the $10 per hour as the purchase price of the
stock code, add the labour component code to the beef burger bill of material on the BOM sheet, calculate the production
time (3 staff members multiplied by 8 hours in a shift and divided by the 400 beef burgers that are produced), enter the
production time as the input quantity of the labour component on the BOM sheet and enter a yield of 100% on the BOM
sheet.
You can create multiple labour stock codes on the StockCode sheet if there are different labour rates for different staff
members. All the applicable labour stock codes then need to be added separately on the BOM sheet. Additional stock codes
do not need to be created if only the production time (input quantity) differs between products because different production
times can be accommodated by entering different input quantities for each product on the BOM sheet. It is only when the
labour pay rates differ that separate stock codes are required.
Example: Direct overheads or distribution costs can also be added to the product costings by creating a stock code for each
type of overhead. We suggest that you compile a monthly forecast of all the appropriate costs, determine the average
number of units that are produced on a monthly basis, calculate the overhead rate by dividing the forecasted monthly amount
by the number of units, create a stock code for the appropriate type of direct overhead cost on the StockCode sheet, enter a
UOM of "Units", enter the overhead rate as the purchase price, add the overhead stock code as a component on the BOM
sheet for all the applicable products and enter an input quantity of 1 and a yield of 100% on the BOM sheet.
Cost Review
The Costing sheet can be used to review individual product costings. All the calculations on this sheet are automated and the
only user input that is required is selecting the appropriate stock code of the manufactured stock item from the list box in cell
A4.
The Costing sheet is compiled from the data that is entered on the StockCode and BOM sheets. The component product
costs and what-if costs are calculated in column O and T on the BOM sheet based on the purchase prices and what-if prices
that are entered in column D and E on the StockCode sheet. The components that are included in the product costing are
based on the components that have been linked to the manufactured product on the BOM sheet and the component input
quantities and yields are also entered on the BOM sheet.
The Costing sheet also includes calculations of the total product cost of the manufactured product (cell H4), the total what-if
cost of the manufactured product (cell J4), the cost variance between the total product cost and the total what-if cost (cell
K4), the product cost of each component (column H), the what-if cost of each component (column J), the component cost
percentage in relation to the total product cost of the manufactured product (column I) and the difference between the
product costs and what-if costs of each component (column K). Refer to the What-If Costs section of these instructions for
more guidance on the what-if cost calculations.
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Note: If you duplicate a stock component that is already linked to a particular manufactured product on the BOM sheet, the
stock component will be also be duplicated on the product costing and result in an inaccurate product cost calculation. We
have therefore implemented conditional formatting on the Costing sheet in order to highlight all duplicated components in
orange in column I. If an orange cell background is displayed in any cell in column I, the appropriate component needs to be
deleted from the BOM sheet in order to correct the duplication. We recommend sorting the BOM sheet by the product stock
code in column A and the component stock code in column B in order to make it easier to find the duplicate entries.
What-If Costs
The what-if cost features have been added to the template to enable users to measure the effect that component price
fluctuations have on the product costings of manufactured stock items. The component purchase prices that need to be
analysed should be entered in column E on the StockCode sheet. All other what-if cost calculations are updated
automatically.
Note: What-if costs should only be entered for bought-in stock items (items that are purchased from suppliers). If you enter a
what-if cost for a manufactured stock item, the cost will have no effect on the template calculations.
The what-if costs are calculated and included in the what-if costings based on the what-if purchase price that is specified in
column E on the StockCode sheet and the component input quantities and yields that are specified on the BOM sheet (the
same input quantities and yields that are used in the product costings). The what-if component costs are calculated in
column T on the BOM sheet, included in column J on the Costing sheet and the total what-if cost of the manufactured
product that is selected from the list box in cell A4 on the Costing sheet is calculated in cell J4. The component what-if costs
and the total what-if cost of the manufactured stock item are also compared to the appropriate product costs on the Costing
sheet.
As we mentioned before, the what-if cost features can be used to analyse the effect that component price fluctuations have
on product costings. We recommend that you start this cost comparison exercise by copying the purchase prices of all
bought-in stock items from column D on the StockCode sheet to column E on the StockCode sheet. The prices in column E
(the what-if cost column) can then be amended to the what-if purchase prices that you want to analyse. The same procedure
should be followed regardless of whether you want to analyse the effect of a price fluctuation in a single stock component or
all stock components.
All the what-if cost calculations in the template are automatically updated and you can view a comparison of all manufactured
stock items on the StockCode sheet or view a comparison between the what-if cost and the product cost of a single
manufactured stock item by simply selecting the appropriate stock item from the list box in cell A4 on the Costing sheet.
Note: What-if costs have also been included in the margin analysis on the Margins sheet. Refer to the Margins section of
these instructions for guidance on how the profit margins are calculated on this sheet.
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Quantity Forecast
The Quantity Forecast features that have been added to the template enable users to enter forecast quantities for all the
appropriate manufactured stock items on the Forecast sheet in order to calculate the stock component quantities that are
required in order to produce the specified quantities of manufactured products. These calculations are extremely useful for
requirements planning or stock usage measurement purposes.
Note: Requirements planning refers to the process of calculating the quantities of manufactured stock items that need to be
produced (usually based on sales forecasts) and then calculating the component quantities that will be required in order to
produce the manufactured products. Orders are then placed with the component stock suppliers based on the quantity
requirements that have been calculated.
Note: Component stock usage can be measured in much the same way. Instead of entering the quantities of manufactured
stock items that need to be produced, users enter the quantities of manufactured stock items that have actually been
produced during the period under review. The component quantities that should have been used in order to produce the
specified manufactured stock item quantities are then automatically calculated (based on the product costings) and these
quantities can then be compared to the actual component stock quantities that have been used in order to measure
production efficiency and the accuracy of the input quantities and yields that have been included in the product costings.
Quantity forecasts can be compiled by simply specifying the stock codes of the appropriate manufactured stock items in
column A on the Forecast sheet, copying the formulas in columns B (stock description), column C (stock unit of measure)
and column D (input error codes) for all the rows that contain a stock code in column A and then entering the quantities of
each manufactured stock item on which the forecast should be based in column E.
Note: All the finished goods stock codes that are added to the Forecast sheet should form part of a continuous cell range.
There should therefore be no blank rows between stock codes otherwise all the components that are listed on this sheet may
not be included in the template calculations.
Note: We also recommend entering the forecast date in cell G2 before printing the sheet in order to keep a record of the
manufactured product quantities that have been used in all quantity forecasts because once you replace the quantities on
this sheet with new forecast quantities, there will be no record of the forecast quantities on which the previous forecast has
been based.
Note: Before using the Forecast feature, you should ensure that all your product costings are accurate. If you base the
forecast on inaccurate product costings it may result in the incorrect component quantities being ordered from suppliers or an
inaccurate analysis of production inefficiencies.
The quantity forecast is calculated by applying the finished goods stock item quantities that are specified on the Forecast
sheet to the appropriate components that are entered on the BOM sheet for the particular manufactured stock items. This
calculation is based on the appropriate component input quantity, yield and unit of measure and is included in columns U to Z
on the BOM sheet.
The Level1 Forecast quantities are determined based on the components that are directly included in the finished goods bills
of material. The Level2 Forecast quantities are based on the Level1 Forecast calculations, the Level3 Forecast quantities are
based on the Level2 Forecast quantities and so forth.
Note: The Forecast calculations that have been included in this template therefore incorporate 7 levels of bills of material. If
you need to include more than 7 levels of bills of material, contact our Support function in order to request a customized
version of this template and specify the number of levels that you need to include in your product costings. Note that the
product costing calculations incorporate an unlimited number of bill of material levels - the limit of 7 levels only applies to the
Forecast calculations.
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Margins
The Margins sheet enables users to calculate the gross profit margins of all manufactured stock items based on the product
costings and what-if costings. The only user input that is required is selecting, entering or copying the appropriate stock code
of the finished goods stock item into column A and entering the appropriate selling price in column E. All the other columns
(with a light blue column heading) contain formulas that should be copied for all the rows that contain a stock code in column
A.
Note: The selling prices that are entered in column E should be exclusive of sales tax if the business is registered for sales
tax purposes.
The product cost in column F and the what-if cost in column I are the same as the product cost and what-if cost for the
particular manufactured stock item as calculated on the StockCode sheet. The gross profit amounts in column G and J are
calculated by deducting the product cost or what-if cost from the appropriate selling price in column E. The gross profit
percentages in columns H and K are calculated by dividing the gross profit amounts in column G and J by the appropriate
selling price in column E.
The what-if selling prices in column L are calculated by applying the gross profit percentages in column H to the what-if costs
in column I and therefore calculate what the selling price should be in order to sustain the same level of profitability if the
price fluctuations that are included in the what-if costs come into effect. The selling price increases in column M indicate the
percentage variance between the what-if selling prices in column L and the selling prices that are entered in column E.
Error Codes
The following error codes may result from inaccurate user input on the StockCode, BOM, Forecast and Margins sheets and
will be displayed in the Error Code columns. The heading of the affected input column will also be highlighted in orange:
E1 - this error code means that a duplicated stock code has been entered in the appropriate row. The error can be
corrected by simply deleting one of the duplicated entries.
E2 - this error code means that the purchase price input in column D on the Stock Code sheet is incorrect. A purchase
price should be entered for all bought-in stock items but is not required for manufactured products. When adding new
manufactured stock items to the StockCode sheet, this error code will be displayed until the appropriate components have
been added to the BOM sheet. The error can be therefore be corrected by adding a purchase price for a bought-in stock
item, adding components to a manufactured stock item or deleting a purchase price that has been specified for a
manufactured product.
E3 - this error code means that the what-if price input in column E on the Stock Code sheet is incorrect. A what-if price
should be entered for all bought-in stock items but is not required for manufactured products. When adding new
manufactured stock items to the StockCode sheet, this error code will be displayed until the appropriate components have
been added to the BOM sheet. The error can be therefore be corrected by adding a what-if price for a bought-in stock item,
adding components to a manufactured stock item or deleting a what-if price that has been specified for a manufactured
product.
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Template Settings
The functionality that has been included in this template uses data validation and named cell ranges in order to validate all
user input and to perform the calculations that form part of this template. Most of the formulas that are used in this template
are based on named cell ranges that include the first 1,000 rows on the appropriate sheets. When the number of entries that
are added to any of these sheets reaches this limit, you will therefore have to extend the default number of rows in order to
include all the entries in the template calculations.
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Copyright
This template remains the intellectual property of www.excel-skills.com and is protected by international copyright laws. Any
publication or distribution of this template outside the scope of the permitted use of the template is expressly prohibited. In
terms of the permitted use of this template, only the distribution of the template to persons within the same organisation as
the registered user or persons outside the organisation who can reasonably be expected to require access to the template as
a direct result of the use of the template by the registered user is allowed. Subsequent distribution of the template by parties
outside of the organisation is however expressly prohibited and represents an infringement of international copyright laws.
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This sheet
sheet includes
includes detailed
detailed instructions
instructions
on
on setting
setting up
up and
and using
using this
this template.
template.
Stock Codes
Set-up
www.excel-skills.com
627,187.38
Purchase
Price
Stock Code
Description
UOM
1212GHG
Garden Shed
1212PHP
1212THT
Tools Shed
RM10
Steel Plates
M2
140.00
160.00
RM25
Door Handle
Units
150.00
170.00
RM30
Wood
M2
120.00
RM50
1 Inch Screws
Bag
RM55
2 Inch Screws
Bag
RM60
Glass
RM70
Filler
RM75
RM80
RM85
SD18
SD20
SD25
What-if
Price
Error
Code
What-If
Cost
Quantity
Forecast
Value Forecast
717,075.88
What-if Value
Forecast
Product Type
Product Cost
Units
Manufactured
4,130.88
4,725.37
Units
Manufactured
4,968.16
5,681.10
Units
Manufactured
3,621.31
4,138.33
Bought-In
140.00
160.00
1,722.22
241,111.11
Bought-In
150.00
170.00
155.00
23,250.00
26,350.00
135.00
Bought-In
120.00
135.00
2,177.78
261,333.33
294,000.00
30.00
36.00
Bought-In
30.00
36.00
17.22
516.67
620.00
50.00
62.00
Bought-In
50.00
62.00
536.93
26,846.41
33,289.54
M2
80.00
90.00
Bought-In
80.00
90.00
188.24
15,058.82
16,941.18
Bag
60.00
On this sheet:70.00
Bought-In
60.00
70.00
88.89
5,333.33
6,222.22
Swivel
Units
3.50
4.00
Bought-In
3.50 unit
Create
bought-in
stock
the
Create unique
unique stock
stock codes
codes for
for all
all
bought-in and
and manufactured
manufactured
stock items
items and
and enter
enter
the stock
stock description,
description,
unit of
of4.00
measure,
purchase
stock
Paint - White
Drumcost
220.00
250.00
Bought-In
220.00 contain
250.00
measure,
purchase price
price and
and what-if
what-if
cost for
for each
each
stock item.
item. The
The columns
columns with
with aa light
light blue
blue column
column heading
heading
contain
formulas
that
codes
created.
include
of
formulas
that should
should be
be copied
copied for
for all
all new
new stock
stock250.00
codes that
that are
are
created. These
These columns
columns
include calculations
calculations
of the
the
Paint - Green
Drum
280.00
Bought-In
250.00
280.00
product
cost
and
what-if
cost
of
all
manufactured
stock
items
(calculated
based
on
the
stock
components
that
are
added
product
cost
and
what-if
cost
of
all
manufactured
stock
items
(calculated
based
on
the
stock
components
that
are
added
Door
Units
Manufactured
313.67
357.00
to
to the
the "BOM"
"BOM" sheet)
sheet) and
and the
the quantity
quantity forecast
forecast that
that is
is calculated
calculated based
based on
on the
the manufactured
manufactured stock
stock item
item quantities
quantities that
that are
are
Window
Units
Manufactured
29.53
33.97
entered
on
the
"Forecast"
sheet.
entered on the "Forecast" sheet.
310.00
1,085.00
1,240.00
63.16
13,894.74
15,789.47
35.29
8,823.53
9,882.35
On this sheet:
275,555.56
155.00
640.00
Roof
Units
Manufactured
1,766.67
2,024.44
155.00
SD30
Window Frame
Units
Manufactured
321.45
368.52
100.00
SD35
Glazed Window
Units
Manufactured
39.53
46.47
240.00
SD40
Units
Manufactured
361.45
418.52
60.00
LB10
Labour - Grade 1
Hours
20.00
25.00
Bought-In
20.00
25.00
1,264.22
25,284.44
31,605.56
LB15
Labour - Grade 2
Hours
30.00
36.00
Bought-In
30.00
36.00
155.00
4,650.00
5,580.00
Page 14 of 21
Bills of Material
Costing Components Set-up
www.excel-skills.com
Product Stock Component
Code
Stock Code
Input
Quantity
Yield
Error
Code
Product Description
Component
UOM
Component
Type
Bought-In
Price
Bought-In
Cost
Intermed
Comp Cost
SD18
RM30
1.000
90.0%
Door
Units
Wood
M2
Bought-In
120.00
133.33
SD18
RM25
1.000
100.0%
Door
Units
Door Handle
Units
Bought-In
150.00
150.00
SD18
RM50
0.100
90.0%
Door
Units
1 Inch Screws
Bag
Bought-In
30.00
3.33
SD18
RM75
2.000
100.0%
Door
Units
Swivel
Units
Bought-In
3.50
7.00
SD18
LB10
1.000
100.0%
Door
Units
Labour - Grade 1
Hours
Bought-In
20.00
20.00
SD20
RM60
0.250
85.0%
Window
Units
Glass
M2
Bought-In
80.00
23.53
SD20
LB10
0.300
100.0%
Window
Units
Labour - Grade 1
Hours
Bought-In
20.00
6.00
SD25
RM10
10.000
90.0%
Roof
Units
SD25
RM30
1.000
90.0%
Steel Plates On
M2
Bought-In
140.00
1,555.56
On this
this sheet:
sheet:
Compile
all
Roof aa bill
Units for
M2Start
Bought-In the
120.00 product
133.33
Compile
bill of
of material
material ("recipe")
("recipe")
forWood
all manufactured
manufactured products.
products.
Start by
by selecting
selecting
the appropriate
appropriate
product
SD25
RM55
1.000
90.0%
SD25
LB10
1.000
90.0%
SD30
SD20
4.000
100.0%
SD30
RM70
0.500
90.0%
SD30
RM30
1.000
80.0%
SD30
LB10
1.000
100.0%
SD35
SD20
1.000
100.0%
Glazed Window
Units
Window
Units
SD35
LB10
0.500
100.0%
Glazed Window
Units
Labour - Grade 1
Hours
Bought-In
SD40
SD35
4.000
100.0%
Units
Glazed Window
Units
Manufactured
SD40
RM70
0.500
90.0%
Units
Filler
Bag
Bought-In
60.00
33.33
SD40
RM30
1.000
80.0%
Units
Wood
M2
Bought-In
120.00
150.00
SD40
LB10
1.000
100.0%
Units
Labour - Grade 1
Hours
Bought-In
20.00
20.00
1212GHG
SD25
1.000
100.0%
Garden Shed
Units
Roof
Units
Manufactured
1,766.67
1212GHG
SD30
2.000
100.0%
Garden Shed
Units
Window Frame
Units
Manufactured
321.45
1212GHG
SD18
1.000
100.0%
Garden Shed
Units
Door
Units
Manufactured
313.67
1212GHG
RM30
9.000
90.0%
Garden Shed
Units
Wood
M2
Bought-In
120.00
1,200.00
1212GHG
RM55
2.000
85.0%
Garden Shed
Units
2 Inch Screws
Bag
Bought-In
50.00
117.65
1212GHG
LB10
3.000
100.0%
Garden Shed
Units
Labour - Grade 1
Hours
Bought-In
20.00
60.00
1212GHG
LB15
1.000
100.0%
Garden Shed
Units
Labour - Grade 2
Hours
Bought-In
30.00
30.00
1212PHP
SD25
1.000
100.0%
Units
Roof
Units
Manufactured
1,766.67
1212PHP
SD40
2.000
100.0%
Units
Units
Manufactured
361.45
1212PHP
SD18
1.000
100.0%
Units
Door
Units
Manufactured
313.67
1212PHP
RM30
9.000
90.0%
Units
Wood
M2
Bought-In
120.00
1,200.00
1212PHP
RM55
2.000
85.0%
Units
2 Inch Screws
Bag
Bought-In
50.00
117.65
1212PHP
RM80
2.000
95.0%
Units
Paint - White
Drum
Bought-In
220.00
463.16
1212PHP
RM85
1.000
85.0%
Units
Paint - Green
Drum
Bought-In
250.00
294.12
1212PHP
LB10
3.000
100.0%
Units
Labour - Grade 1
Hours
Bought-In
20.00
60.00
1212PHP
LB15
1.000
100.0%
Units
Labour - Grade 2
Hours
Bought-In
30.00
30.00
1212THT
SD25
1.000
100.0%
Tools Shed
Units
Roof
Units
Manufactured
1,766.67
1212THT
SD18
1.000
100.0%
Tools Shed
Units
Door
Units
Manufactured
313.67
stock
code
select
component
stock
in
the
stockRoof
code in
in column
column A
Aand
and then
then
select2the
the
appropriate
component
stock code
code
in column
column B
B before
before
entering55.56
the
Units
Inchappropriate
Screws
Bag
Bought-In
50.00entering
input
and
yield
of
each
component.
The
columns
with
aa light
blue
column
heading
contain
formulas
that
input quantity
quantity
and
yield
of
each
component.
The
columns
with
light
blue
column
heading
contain
formulas
that
Roof
Units
Labour - Grade 1
Hours
Bought-In
20.00
22.22
should
should be
be copied
copied for
for all
all new
new components
components that
that are
are entered
entered on
on this
this sheet.
sheet. The
The bill
bill of
of material
material that
that is
is created
created on
on this
this
Window
Units
Windowcode in column A) and
Unitsthe components
Manufacturedthat are used
- in order to sheet
links
the
sheet
linksFrame
the manufactured
manufactured product
product (stock
(stock code in column A) and
the components
that are used
in order to
Window the
Frame
Units
Bag
Bought-In
60.00 product
33.33
manufacture
column
that
to
on
manufacture
the product
product (stock
(stock codes
codes in
inFiller
column B).
B). All
All components
components
that are
are linked
linked
to aa manufactured
manufactured
product
on
this
are
included
cost
calculation
product.
add
this sheet
sheet
are
included in
in the
the product
product
cost
calculation of
of the
the manufactured
manufactured
product.
Note that
that you
you can
can also
also150.00
add
Window
Frame
Units
Wood
M2
Bought-InNote
120.00
direct
labour
and
to a bill
by simply creating
aa unique
stock
these
direct
labour
and overhead
overhead costs
costs
bill of
of material
unique
stock code
code for
for
these costs.
costs.
Window
Frame
Units to a Labour
-material
Grade 1 by simply creating
Hours
Bought-In
20.00
20.00
Page 15 of 21
Manufactured
20.00
-
10.00
-
29.53
29.53
39.53
Bills of Material
Costing Components Set-up
www.excel-skills.com
Product Stock Component
Code
Stock Code
Input
Quantity
Yield
Error
Code
Product Description
Component
UOM
Component
Type
Bought-In
Price
Bought-In
Cost
Intermed
Comp Cost
1212THT
RM30
10.000
90.0%
Tools Shed
Units
Wood
M2
Bought-In
120.00
1,333.33
1212THT
RM55
2.000
85.0%
Tools Shed
Units
2 Inch Screws
Bag
Bought-In
50.00
117.65
1212THT
LB10
3.000
100.0%
Tools Shed
Units
Labour - Grade 1
Hours
Bought-In
20.00
60.00
1212THT
LB15
1.000
100.0%
Tools Shed
Units
Labour - Grade 2
Hours
Bought-In
30.00
30.00
Page 16 of 21
Bills of Material
Costing Components Set-up
www.excel-skills.com
Product Stock Component
Code
Stock Code
Intermed
Prod Cost
Product Cost
WI I/M Prod
Cost
What-If
Cost
Level1
Forecast
Level2
Forecast
Level3
Forecast
Level4
Forecast
Level5
Forecast
Level6
Forecast
SD18
RM30
133.33
135.00
150.00
150.00
172.22
SD18
RM25
150.00
170.00
170.00
170.00
155.00
SD18
RM50
3.33
36.00
4.00
4.00
17.22
SD18
RM75
7.00
4.00
8.00
8.00
310.00
SD18
LB10
20.00
25.00
25.00
25.00
155.00
SD20
RM60
23.53
90.00
26.47
26.47
117.65
70.59
SD20
LB10
6.00
25.00
7.50
7.50
120.00
72.00
SD25
RM10
1,555.56
160.00
1,777.78
1,777.78
1,722.22
SD25
RM30
133.33
135.00
150.00
150.00
172.22
SD25
RM55
55.56
62.00
68.89
68.89
172.22
SD25
LB10
22.22
25.00
27.78
27.78
172.22
SD30
SD20
135.88
400.00
SD30
RM70
33.33
70.00
38.89
38.89
55.56
SD30
RM30
150.00
135.00
168.75
168.75
125.00
SD30
LB10
20.00
25.00
25.00
25.00
100.00
SD35
SD20
33.97
240.00
SD35
LB10
12.50
120.00
SD40
SD35
185.88
240.00
SD40
RM70
33.33
70.00
38.89
38.89
33.33
SD40
RM30
150.00
135.00
168.75
168.75
75.00
SD40
LB10
20.00
25.00
25.00
25.00
60.00
1212GHG
SD25
1,766.67
1,766.67
2,024.44
2,024.44
2,024.44
50.00
1212GHG
SD30
642.90
642.90
368.52
737.04
737.04
100.00
1212GHG
SD18
313.67
313.67
357.00
357.00
357.00
50.00
1212GHG
RM30
1,200.00
135.00
1,350.00
1,350.00
500.00
1212GHG
RM55
117.65
62.00
145.88
145.88
117.65
1212GHG
LB10
60.00
25.00
75.00
75.00
150.00
1212GHG
LB15
30.00
36.00
36.00
36.00
50.00
1212PHP
SD25
1,766.67
1,766.67
2,024.44
2,024.44
2,024.44
30.00
1212PHP
SD40
722.90
722.90
418.52
837.04
837.04
60.00
1212PHP
SD18
313.67
313.67
357.00
357.00
357.00
30.00
1212PHP
RM30
1,200.00
135.00
1,350.00
1,350.00
300.00
1212PHP
RM55
117.65
62.00
145.88
145.88
70.59
1212PHP
RM80
463.16
250.00
526.32
526.32
63.16
1212PHP
RM85
294.12
280.00
329.41
329.41
35.29
1212PHP
LB10
60.00
25.00
75.00
75.00
90.00
1212PHP
LB15
30.00
36.00
36.00
36.00
30.00
1212THT
SD25
1,766.67
1,766.67
2,024.44
2,024.44
2,024.44
75.00
1212THT
SD18
313.67
313.67
357.00
357.00
357.00
75.00
118.12
29.53
158.12
118.12
29.53
10.00
158.12
25.00
-
12.50
-
33.97
33.97
46.47
135.88
33.97
185.88
Page 17 of 21
Bills of Material
Costing Components Set-up
www.excel-skills.com
Product Stock Component
Code
Stock Code
Intermed
Prod Cost
Product Cost
WI I/M Prod
Cost
What-If
Cost
Level1
Forecast
Level2
Forecast
Level3
Forecast
Level4
Forecast
Level5
Forecast
Level6
Forecast
1212THT
RM30
1,333.33
135.00
1,500.00
1,500.00
833.33
1212THT
RM55
117.65
62.00
145.88
145.88
176.47
1212THT
LB10
60.00
25.00
75.00
75.00
225.00
1212THT
LB15
30.00
36.00
36.00
36.00
75.00
Page 18 of 21
Product Costing
Stock Code
Description
1212PHP
Type
Total Cost
What-If Cost
Variance
Manufactured
4,968.16
5,681.10
14.4%
www.excel-skills.com
Stock Code
Description
UOM
Product
Type
Component
Cost
Input
Quantity
SD25
Roof
Units
Manufactured
1,766.67
1.000
100.0%
1,766.67
35.6%
2,024.44
14.6%
SD40
Units
Manufactured
361.45
2.000
100.0%
722.90
14.6%
837.04
15.8%
SD18
Door
Units
Manufactured
313.67
1.000
100.0%
313.67
6.3%
357.00
13.8%
RM30
Wood
M2
Bought-In
120.00
9.000
90.0%
1,200.00
24.2%
1,350.00
12.5%
RM55
2 Inch Screws
Bag
Bought-In
50.00
2.000
85.0%
117.65
2.4%
145.88
24.0%
RM80
Paint - White
Drum
Bought-In
220.00
2.000
95.0%
463.16
9.3%
526.32
13.6%
RM85
Paint - Green
Drum
Bought-In
250.00
1.000
85.0%
294.12
5.9%
329.41
12.0%
LB10
Labour - Grade 1
Hours
Bought-In
20.00
3.000
100.0%
60.00
1.2%
75.00
25.0%
LB15
Labour - Grade 2
Hours
Bought-In
30.00
1.000
100.0%
30.00
0.6%
36.00
20.0%
On
Onthis
thissheet:
sheet:
Yield
The
The product
product costing
costing calculations
calculations on
on this
this sheet
sheet enable
enable users
users to
to view
view aa detailed
detailed costing
costing for
for any
any
manufactured
manufactured product.
product. The
The sheet
sheet requires
requires no
no user
user input
input all
all the
the cost
cost components
components are
are automatically
automatically
calculated
calculated based
based on
on the
the stock
stock code
code that
that is
is selected
selected from
from the
the list
list box
box in
in cell
cell A4.
A4. The
The calculations
calculations on
on
this
this sheet
sheet can
can also
also be
be used
used to
to analyze
analyze the
the effect
effect that
that component
component price
price increases
increases have
have on
on an
an
individual
individual product
product costings
costings by
by comparing
comparing the
the product
product cost
cost and
and what-if
what-if cost
cost of
of aa manufactured
manufactured
product.
product.
Page 19 of 21
Cost
% Cost
Variance
Production Forecast
Production Quantity Forecast
Date Prepared:
www.excel-skills.com
Stock Code
Description
UOM
1212GHG
Garden Shed
Units
Error Code
50.00
1212PHP
Units
30.00
1212THT
Tools Shed
Units
75.00
On
On this
this sheet:
sheet:
Quantity
The
The production
production forecast
forecast can
can be
be used
used to
to determine
determine the
the stock
stock component
component
quantities
quantities that
that are
are required
required in
in order
order to
to produce
produce the
the manufactured
manufactured stock
stock
quantities
quantities that
that are
are entered
entered on
on this
this sheet.
sheet. Simply
Simply enter
enter the
the appropriate
appropriate
manufactured
manufactured stock
stock quantities
quantities and
and the
the component
component stock
stock quantities
quantities are
are
calculated
calculated and
and displayed
displayed in
in column
column JJ on
on the
the "StockCode"
"StockCode" sheet.
sheet. The
The columns
columns
with
with light
light blue
blue column
column headings
headings contain
contain formulas
formulas that
that should
should be
be copied
copied for
for all
all
new
products
that
are
entered
on
this
sheet.
new products that are entered on this sheet.
Page 20 of 21
2/18/2016
Margin Analysis
Finished Products
www.excel-skills.com
Error
Code
Selling
Price
Stock Code
Description
UOM
1212GHG
Garden Shed
Units
5,500.00
1212PHP
Units
6,000.00
1212THT
Tools Shed
Units
4,500.00
Product
Cost
Gross Profit
Gross Profit
%
4,130.88
1,369.12
24.9%
4,725.37
774.63
14.1%
6,291.52
14.4%
4,968.16
1,031.84
17.2%
5,681.10
318.90
5.3%
6,861.01
14.4%
3,621.31
878.69
19.5%
4,138.33
361.67
8.0%
5,142.46
14.3%
On
On this
this sheet:
sheet:
The
The calculations
calculations on
on this
this sheet
sheet enable
enable users
users to
to calculate
calculate the
the actual
actual gross
gross profit
profit percentage
percentage of
of all
all
manufactured
manufactured products
products based
based on
on the
the selling
selling price
price that
that is
is entered
entered in
in column
column E.
E. User
User input
input is
is limited
limited
to
to selecting
selecting the
the appropriate
appropriate stock
stock code
code and
and entering
entering the
the appropriate
appropriate selling
selling price
price all
all the
the columns
columns
with
with aa light
light blue
blue column
column heading
heading contain
contain formulas
formulas that
that should
should be
be copied
copied for
for all
all the
the new
new stock
stock
codes
codes that
that are
are added
added to
to this
this sheet.
sheet. A
A calculation
calculation of
of the
the what-if
what-if gross
gross profit
profit is
is also
also included
included and
and the
the
what-if
what-if selling
selling price
price is
is calculated
calculated by
by applying
applying the
the actual
actual gross
gross profit
profit percentage
percentage to
to the
the what-if
what-if cost.
cost.
Page 21 of 21
What-If
Cost
What-If Gross
Profit
What-If GP %