FAR EASTERN UNIVERSITY-MANILA

Institute of Accounts, Business, and Finance

Department of Accountancy and Internal Auditing

MODULE 4
Technical Aspect

Learning Outcomes
After studying Module 4, you be able to:
1. Analyze the flow of procurement process, pre-production process, production process, and selling process through the use of
a flow chart.
2. Explain the production schedule needed for defining the manpower requirements.
3. Identify the materials, labor, overhead, and other resources required for determining the unit production cost.
4. Discuss the various issues to be considered in choosing the location/site to facilitate the renovation and creation of the floor
plan.
This module will cover the step by step process using a flow chart with time duration of the following (a. purchase process b. pre-
production process c. production process and d. selling process. The module will also cover the study of plant capacity, plant location
and layout, other operating requirements and property and equipment to be used in the production of product. And also the learner will
be taught how to determine the production cost or factory cost involve.

The following should be presented:

a. STEP BY STEP PROCESS/FLOW CHART with time duration

Flow chart – is a diagram that describes a process or operation, It includes multiple steps, which the process “flows” through
from start to finish…. Flowcharts typically use standard symbols to represent different stages or actions within the chart.
https://techterms.com
• Purchase process – description and process time
Figure 1. Purchase Process - sample

2
 • Pre-production process (preparation process) –
description and process time

Figure 2. Pre-production process flow chart

Pre-production process - is the process of planning or preparing the materials or ingredients involved in making a product or service.
Pre-production ends when the planning ends and the content starts being produced.

3
 Pre-Production Process Flowchart Description - sample
The figure illustrated above shows the pre-production process needed to prepare the product. The following steps are:
1. Prepare the tools. Arrange all the tools needed in making cookie cup in the table.
2. Get the ingredients needed. Gather all the ingredients in the storage room.
3. Measures the shortening. Measure the shortening needed in making the cookie cup.
4. Measures the flour. Measure the flour needed in making the cookie cup.
5. Measures the sugar. Measure the sugar needed in making the cookie cup.
6. Separate the egg yolk. Tap the egg on a flat surface. Crack the egg to the egg separator.
7. Measures the vanilla. Measure the vanilla needed in making the cookie cup.
8. Measures the chocolate chips. Measure the chocolate chips in making the cookie cup.
9. Turn on the oven. Plug the oven to operate.
10. Preheat the oven. Preheat oven to 350*F.

https://en.m.wikipedia.org

• Production process – description and process time

Production Process Flowchart Description - sample
The figure illustrated below shows the production process needed to prepare
the cookie cup. It shows the production process of the beverage in the store area
which is about one hour and thirty minutes (1 hour and 30 minutes).
1. Place the shortening in the bowl. Put the shortening in a mixing bowl.
2. Add flour. Put the flour in the mixing bowl.
3. Add salt. Put the salt in the mixing bowl.
4. Add sugar. Put the sugar in the mixing bowl.
5. Add the egg yolk. Get the egg yolk from the separator and add it in
the mixing bowl.
6. Add vanilla. Put some vanilla extract to add flavor to the cookie cup.
7. Add Choco chips. Place the Choco chips in the mixing bowl.
8. Mix all the ingredients. Mix together until evenly distributed. The dough
should be a little crumbly at this point.
9. Spray non-stick oil in the molder Use it to help the cookie cup release
perfectly.
10. Weigh the cookie dough mixture. Measure the cookie dough if it contains
right amount of dough.
11. Freeze. Chill the molded dough.
12. Bake. Bake for about 20 minutes or until the cookies just start to brown.
Remove from the oven, and let cool completely.
13. Rest. Chill the baked cookie cup.
14. Melt the chocolate and gelatin. Dissolve the gelatin powder in a hot
water then mixed it with the melted chocolate.
15. Mix the chocolate and gelatin. Mix the melted chocolate and gelatin.
16.. Coat the chocolate inside the cookie cup. Pour the melted chocolate into
the well of each cookie.
17. Freeze. Chill cookie shots until the chocolate has set.
18. Place in the bakery rack. Put the cookie cup shot in the bakery rack as a finish
product..

4
 Figure 3. Production Process Flow Chart

Production process – is the process a product or service takes in order for it to become ready for customers to buy.

www.businessplanhut.com

5
 • Selling process – description and process time

Selling Process – is a process involving the interaction between a potential buyer and a person hired by a company to sell its products
to a potential buyers. https://study.com

Figure 4. Selling Process Flow Chart - sample

6
Selling Process/Flowchart Description - sample
1. The cashier will greet the customer first and then take the order.
2. After taking the order, he will input the order to the cash register.
3. Repeat the customer’s order to the customer. This is to check if the inputted order is correct. If the
order is correct, proceed to the succeeding steps. If incorrect, follow the steps enumerated below.
4. Accept the payment and give the change, if any.
5. Give the receipt to the customer.
6. Give the list of orders to the production.
7. The cashier, after preparation by the production of the ordered meal/s, serves the ordered items to
the customer/s.

If order is incorrect:
1. Call the manager or supervisor and ask the authorized personnel to void the transaction.
2. Input the correct order to the cash register.
3. Follow steps 4-7 above.

• Production Schedule for one week

Scheduling (production processes) …
Scheduling is used to allocate plant and machinery
resources, plan human resources, plan production
processes and purchase materials. It is an important tool for
manufacturing and engineering, where it can have a major
impact on the productivity of a process. See Table 1

Note: your production schedule must be aligned with

the time duration of your preproduction & production
process time. Refer also to Figure 2 & Figure 3.

7
Table 1.1 Production Schedule for One week – sample

PROCESS – sample TUES. WED. THU. FRI. SAT. SUN.

1st batch
Preproduction process
Prepare the tools for baking (1 minute) 8:00 – 8:01 AM

Get the ingredients needed (2 minutes) 8:01 – 8:03 AM

Measure the shortening, flour, salt and sugar (2 minutes) 8:03 – 8:05 AM

Measure the shortening, flour, salt and sugar(3 minutes) 8:05 – 8:08 AM

Measure the vanilla and choco chips(1 minute) 8:08 – 8:09 AM

Turn on the oven(1 minute) 8:09 – 8:10 AM

Preheat the oven (5 minutes) 8:10 – 8:15 AM

Production process

Place the Shortening in the mixing bowl (5 sec.) 8:15 – 8:15:05 AM

Add the flour(5 sec.) 8:15:05 – 8:15:10 AM

Add the salt(5 sec.) 8:15:10 – 8:15:15 AM

Add the sugar(5 sec.) 8:15:15 – 8:15:20 AM

Add the egg yolk(5 sec.) 8:15:20 – 8:15:25 AM

Add the vanilla(5 sec.) 8:15:25 – 8:15:30 AM

Add the choco chips(5 sec.) 8:15:30 – 8:15:35 AM

Mix all the ingredients(5 minutes) 8:15:35 – 8:20:35 AM

Spray non stick oil in the molder(15 sec.) 8:20:35 – 8:20:50 AM

Weigh the Cookie Mixture 8:20:50 – 8:21 AM

Mold the dough in the cookie molder(10 sec.) 8:21 – 8:57 AM

Freeze the molded cookie(5 minutes) 8:57 – 9:02 AM

Bake the frozen molded cookie(10 minutes) 9:02 – 9:12 AM

Rest the baked cookie(4 minutes) 9:12 – 9:16 AM

Melt the chocolate and gelatine(14 minutes) 9:16 – 9:30 AM

Mix the chocolate and gelatine(1 minute) 9 :30 – 9:31 AM

Coat the inside of the cookie with the chocolate mixture(4 minutes) 9:31 – 9:35 AM
Freeze the cookie cup(5 minutes) 9:35 – 9:40 AM
8
Place the cookie cup in the bakery rack(5 minutes) 9:40 – 9:45 AM
Table 1.2 Production Schedule for One week

PROCESS - sample TUES. WED. THU. FRI. SAT. SUN.

2nd batch
Preproduction process
Prepare the tools for baking (1 minute) 10:15 – 10:16 AM

Get the ingredients needed (2 minutes) 10:16 – 10:18 AM

Measure the shortening, flour, salt and sugar (2 minutes) 10:18 – 10:20 AM

Measure the shortening, flour, salt and sugar(3 minutes) 10:20 – 10:23 AM
Measure the vanilla and choco chips(1 minute) 10:23 – 10:24 AM
Turn on the oven(1 minute) 10:24 – 10:25 AM
Preheat the oven (5 minutes) 10:25 – 10:30 AM
Production process

Place the Shortening in the mixing bowl (5 sec.) 10:30 – 10:30:05 AM

Add the flour(5 sec.) 10:30:05 – 10:30:10 AM

Add the salt(5 sec.) 10:30:10 – 10:30:15 AM

Add the sugar(5 sec.) 10:30:15 – 10:30:20 AM

Add the egg yolk(5 sec.) 10:30:20 – 10:30:25 AM

Add the vanilla(5 sec.) 10:30:25 – 10:30:30 AM

Add the choco chips(5 sec.) 10:30:30 – 10:30:35 AM

Mix all the ingredients(5 minutes) 10:30:35 -10:35:35AM

Spray non stick oil in the molder(15 sec.) 10:35:35 – 10:35:50 AM

Weigh the Cookie Mixture 10:35:50 – 10:36 AM

Mold the dough in the cookie molder(10 sec.) 10:36 – 11:12 AM

Freeze the molded cookie(5 minutes) 11:12 – 11:17 AM

Bake the frozen molded cookie(10 minutes) 11:17 – 11:27 AM

Rest the baked cookie(4 minutes) 11:27 – 11:31 AM

Melt the chocolate and gelatine(14 minutes) 11:31 – 11:45 AM
Mix the chocolate and gelatine(1 minute) 11:45 – 11:46 AM

Coat the inside of the cookie with the chocolate mixture(4 minutes) 11:46 – 11:50 AM
Freeze the cookie cup(5 minutes) 11:50 – 11:55 AM
Place the cookie cup in the bakery rack(5 minutes) 11:55 – 12:00 PM
9
Table 1.3 Production Schedule for One week

PROCESS - sample TUES. WED. THU. FRI. SAT. SUN.

3rd batch
Preproduction process
Prepare the tools for baking (1 minute) 1:00 – 1:01 PM

Get the ingredients needed (2 minutes) 1:01 – 1:03 PM

Measure the shortening, flour, salt and sugar (2 minutes) 1:03 – 1:05 PM

Measure the shortening, flour, salt and sugar(3 minutes) 1:05 – 1:08 PM

Measure the vanilla and choco chips(1 minute) 1:08 – 1:09 PM

Turn on the oven(1 minute) 1:09 – 1:10 PM

Preheat the oven (5 minutes) 1:10 – 1:15 PM

Production process

Place the Shortening in the mixing bowl (5 sec.) 1:15 – 1:15:05 PM

Add the flour(5 sec.) 1:15:05 – 1:15:10 PM

Add the salt(5 sec.) 1:15:10 – 1:15:15 PM

Add the sugar(5 sec.) 1:15:15 – 1:15:20 PM

Add the egg yolk(5 sec.) 1:15:20 – 1:15:25 PM

Add the vanilla(5 sec.) 1:15:25 – 1:15:30 PM

Add the choco chips(5 sec.) 1:15:30 – 1:15:35 PM

Mix all the ingredients(5 minutes) 1:15:35 – 1:20:35 PM

Spray non stick oil in the molder(15 sec.) 1:20:35 – 1:20:50 PM

Weigh the Cookie Mixture 1:20:50 – 1:21 PM

Mold the dough in the cookie molder(10 sec.) 1:21 – 1:57 PM

Freeze the molded cookie(5 minutes) 1:57 – 2:02 PM

Bake the frozen molded cookie(10 minutes) 2:02 – 2:12 PM

Rest the baked cookie(4 minutes) 2:12 – 2:16 PM

Melt the chocolate and gelatine(14 minutes) 2:16 – 2:30 PM

Mix the chocolate and gelatine(1 minute) 2:30 – 2:31 PM

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Coat the inside of the cookie with the chocolate mixture(4 minutes) 2:31 – 2:35 PM
Freeze the cookie cup(5 minutes) 2:35 – 2:40 PM

Place the cookie cup in the bakery rack(5 minutes) 2:40 – 2:45 PM
• Store schedule
Creating the work schedule requires meeting the
needs of the store while satisfying the needs of the workers.
You have to be on the lookout if the store schedule is in
agreement (i.e. timing) with the production schedule.

Table 2. Store Schedule - sample

Time Mon Tues Wed Thurs Fri Sat Sun

8:00 am Time-in of Assistant Manager, Baker and

Assistant Baker (production)
Start of baking of the cookie cups
8:01 am – 9:59 am Preparation for the opening of the store
(production)

10:00 am Time-in of Crew 1 & 2, and the Cashier.

Opening and operation of the store.

Start of cleaning and closing of the store.

7:00pm

11
 • Office schedule
Office schedules are used to determine the office
employee’s work hours per day. Office workers normally
spend their time working inside the office. Office workers
typically sit for most of the workday.

Table 3. Office Schedule - sample

Employees Monday Tuesday Wednesday Thursday Friday Saturday Sunday

Partners Meeting every first Friday of the month and whenever necessary.

General 11:00AM-2:00PM 11:00AM-2:00PM 11:00AM-2:00PM 11:00AM-2:00PM 11:00AM-2:00PM 11:00AM-2:00PM

Manager 3:00PM-8:00PM 3:00PM-8:00PM 3:00PM-8:00PM 3:00PM-8:00PM 3:00PM-8:00PM 3:00PM-8:00PM
Closed
11:00AM-3:00PM 11:00AM-3:00PM 11:00AM-3:00PM 11:00AM-3:00PM 11:00AM-3:00PM 11:00AM-3:00PM
Bookkeeper
4:00PM-8:00PM 4:00PM-8:00PM 4:00PM-8:00PM 4:00PM-8:00PM 4:00PM-8:00PM 4:00PM-8:00PM

Retainer
Meeting twice a month
Accountant

Source: https://bmcpublichealth.biomed

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b. PRODUCTION CAPACITY
Production capacity – volume or number of units that
can be produced during a given period or the output
expectations from the production of the plant. You have to
consider here the normal and maximum capacity of your
production equipment. Number of people assigned to your
production area.
• Number of units
Production Capacity for Cookie Cups - sample
produced per cycle or Total Operating Hours 8 hours
batch Minutes per Hours x 60 mins/hr
• Number of cycle per day Total Operating Minutes per Day
___________________________
480 minutes
Less:
Other Duties/non-productive 60 minutes
___________________________
Total Minutes in Production 420 minutes
Total Production Time per Cycle /105 minutes
___________________________
Number of Cycles per Day 4. 00 cycles
Machines and Equipment’s Maximum Capacity per Day 5 cycles
Machines and Equipment’s Normal Capacity per Day 4 cycles

Table 4. Production Capacity Table for Cookie Cups

A B C D E F

Cookie Cup per No. of No. of Cookie Cup per No. of Cookie Cups per day
Molder molder/s oven/s Cycle cycle/s (D x E)
(A x B x C)

6 9 2 108 units 4 432 units

13
 Year A B C D E F G H I J K
B*C A*D F/E D*G H*360 I*J
Time Unit Number of Units Hours per Production Batch Capacity per Capacity per Estimated Projected
required in capacity oven per batch hours per day day (in units) year (in units) Percentage of Annual
hrs per fryer batch Capacity Capacity
Availed

2020 Pre-production 15mins

Production 90mins

Total Prod 105mins 54 2 108 105 420 4 432 155,520 61.25% 95,256
Time pcs pcs mins mins
2021 Pre-production 15mins
Production 90mins

Total Prod 105mins 54 2 108 105 420 4 432 155,520 68.60% 106,687
Time pcs pcs mins mins
2022 Pre-production 15mins
Production 90mins

Total Prod 105mins 54 2 108 105 420 4 432 155,520 76.83% 119,486
Time pcs pcs mins mins
2023 Pre-production 15mins
Production 90mins

Total Prod 105mins 54 2 108 105 420 4 432 155,520 86.05% 133,825
Time pcs pcs mins mins
2024 Pre-production 15mins
Production 90mins

Total Prod 105mins 54 2 108 105 420 4 432 155,520 96.38% 149,890
Time pcs pcs mins mins

Table 5. Production Capacity Table for Cookie Cups - sample

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 • Manpower
Schedule/Shifting Table 6
Manpower scheduling is the Manpower Schedule/Shifting - sample

process by which the daily Time Cook 1 Cook 2 Cook 3

Cashier/ Cashier/ Cashier/
Janitor
manpower level for each skill Crew 1 Crew 2 Crew 3

is selected to complete the 8:00 - 9:00

work in the most efficient
(orderly, economical, safe) 9:00 - 10:00
manner. Manpower should
10:00 - 11:00
be scheduled so as to avoid
interruptions of productive 11:00 - 12:00
time, repeated hiring/firing of
workers, repeated 12:00 - 1:00 BREAK BREAK
movement of workers from 1:00 - 2:00
one end of the unit/plant to
the other, creating a work 2:00 - 3:00 BREAK BREAK
logjam or peak demands for
3:00 - 4:00
products and services. Refer
to Table 5. 4:00 - 5:00

https://www.interplansystems.com 5:00 - 6:00 BREAK BREAK BREAK

6:00 - 7:00

7:00 - 8:00

8:00 - 9:00

9:00 - 10:00

15
c. BUSINESS LOCATION
The importance of location in business success cannot be
understated. The location of a business position it not only to
attract a customer base but also to attract the right sort of talent
to make the business a success. Placing your business in a part
of town that reflects your brand and products can impact the
success of your
establishments.

https://yourbusiness.azcentral.com

Vicinity Map
Vicinity Map is a map that illustrates the vicinity of whatever-it-
is you are interested in – your town, your neighborhood ……..
see Fig. 5

Figure 5. Vicinity Map - sample

https://www.quora.com Figure 30 illustrated above shows the map location of the commercial space to be rented by
the business, which is at be at Ground Floor, St. Thomas Square 1150 España Blvd, 398, Manila,
1015 Metro Manila. The business location is accessible for the students and other target
market of the food establishment. The proponents of the study have chosen this place because
• Actual façade of the accessibility within students. The location is easy to find and can access from schools
through walking. Since it is located along Espana Blvd, it is close to our target market which is
of the location the students from nearby universities. Furthermore, it also near to different dormitories where
students live which comprise our target market.
Façade is the
front of a
building; also
any face of a
building given
special
architectural Figure 6. Façade
treatment.
The business will be located at Don Lorenzo Building, 889
P. Paredes Street, Sampaloc, Manila.

16
d. FLOOR PLAN OF Figure 7. Floor area - sample

THE BUSINESS (All

floors)
In architecture
and building
engineering, a floor
plan is a drawing to
scale, showing a
view from above, of
the relationships
between rooms,
spaces, traffic
patterns, and other
physical features at
one level of structure.
Dimensions are
usually drawn
between the walls to
specify room sizes
and wall lengths.
https://en.m.wikipedia.org.

• Floor area – see

Figure 7.

17
• Production area lay-out and specification

Figure 8
Production Area Layout

18
• Office lay-out and specification
Figure 9 sample

The office shall have four (4) workstations

which shall be for the General Manager, Assistant Manager,

Treasurer and Bookkeeper. The workstations shall have

laptop computers available for the use of employees. The

office is designed without partitions to promote “face-to-face”

communication among employees and a more collaborative

work environment. Cabinets are also available for storage of

business documents and records, as well as employees’

personal belongings.

• Store lay-out and specification

19
Figure 10 - sample

The store area shall have a laboratory-like setting to provide the

customers a new and unique restaurant experience by exhibiting a

picturesque view. The store shall have three (3) big modular tables

with four (4) chairs each, which can be moved towards each other,

forming a bigger dining space to cater big groups of customers with

more than four (4) people. Whereas, the small tables shall be

available for pairs or individual dining. The counter, to which the

cashier is situated, shall have an access door to the production area

and back office. The store also has a lavatory available for the use

of the customers and a television set for entertainment purposes

and important announcements.

Figure 10
Store AreaSpecifications

20
e. PROPERTY, PLANT AND EQUIPMENT
Property, Plant, and Equipment are assets held by an
enterprise for use in the production or supply of goods or
services, or for administrative purposes and which are expected
to be used for more than one period. (International Accounting
Standard No. 16). Contents of the Table
• Separate Tabular Presentation for 1. Name
1. Production machinery and equipment – see Table 7 2. Image
2. Production furniture and fixtures – see Table 8 3. Estimated useful
3. Office machinery and equipment – see Table 9 life
4. Office furniture and fixtures – see Table 10 4. Unit required
5. Store machinery and equipment – see Table 11 5. Unit cost
6. Store furniture and fixtures – see Table 12 6. Total cost
7. Production tools – not subject to depreciation – see 7. Total depreciation
Table 13
8. Kitchen supplies – see Table 14
9. Office supplies – see Table 15
10. Store supplies – see Table 16

21
Table 7
Production Machinery & Equipment - sample
UNIT TOTAL
EST. INPUT COST, NET
# OF COST COST DEPRECIATION
NAME IMAGE SPECIFICATIONS USEFUL
UNITS (IN (IN
VAT (IN OF VAT (IN
(IN PHP)
LIFE PHP) PHP)
PHP) PHP)
Dual • Double lid
compartment • Solid top
Freezer with frontal
temperature
SN: control
GOP145B20C • Freezer: 7
20 1 18,950 18,950 2,030.36 16,919.64 845.98
2A4 cu.ft;
Chiller: 3.5
Purchase cu.ft
Date: Nov. 15, • H: 87.6 cm;
2020 W: 120 cm;
L: 59.1 cm

Refrigerator • One-door
refrigerator with deodorizing filter
and LED interior lightning
SN:
• Capacity:
ASD01SFDA2
7.4 cu.
5189 15 1 12,995 12,995 1,392.32 11,602.68 773.51
Ft.
• H: 121.6
Purchase
cm; W: 54.5
Date: Nov. 15,
cm; L: 62.6
2020 cm

22
 Gas Range
Cooker
• Stainless steel body with glass
SN:
top cover
UN308HLAA9
• Gas grill with rotisserie 15 2 16,790 33,580 3,597.86 29,982.14 1,998.81
AQ0
• H: 88 cm; W: 60 cm; L: 60 cm
• Capacity: 70 liters
Purchase
Date: Nov. 15,
2020
Range hood • Single turbo
hood motor
SN: with grease
ASJDIOA0123 filter
DAA • With
recirculation 10 1 3,695 3,695 395.89 3,299.11 329.91
Purchase and carbon
filter
Date: Nov. 15,
• H: 14 cm; W:
2020
60 cm; L: 50
cm
Tortilla Press • Heavy-duty
construction
SN: with extra
ASNAIV1294A screw for
S8C the lever
• Capacity: 5 2 4,000 8,000 857.14 7,142.86 1,428.58

Purchase One
Date: Nov. 15, tortilla at a time
2020 • H: 9.5 in; W:
8 in; L: 2.5 in

23
Tea Warmer

SN: • Stainless steel with boil dry

ASDJAXC913 protection
ASNA • With removable and washable `10 2 1,500 3,000 321.43 2,678.57 267.86
filter
Purchase • Capacity: 12 liters
Date: Nov. 15,
2020
Water • Capacity: 22 liters
Dispenser • H: 82.5 cm; W: 27.5 cm; L: 29
cm
SN:
JFZX941S914
8 1 5,550 5550 594.64 4,955.36 619.42
9A9

Purchase
Date: Nov. 15,
2020
Meat mincer • Stainless
steel
SN: construction,
PXF98655450 good for
97764 mass
8 1 12,595 12,595 1,349.46 11,245.54 1,405.69
production
Purchase • Capacity: 4
Date: Nov. 15, quarters
2020 • H: 9 in;
Diameter: 6 in
TOTAL 98,365 10,539.11 87,825.89 7,669.75

24
 Table 8
Production Furniture & Fixtures - sample

UNIT TOTAL COST,

EST. INPUT
# OF COST COST NET DEPRECIATION
NAME IMAGE SPECIFICATIONS USEFUL VAT (IN
UNIT (IN (IN OF VAT (IN PHP)
LIFE PHP)
PHP) PHP) (IN PHP)
Kitchen • Wooden
Hanging cabinet
Cabinet • Color:
brown
SN: • Capacity:
10 1 3,999 3,999 428.46 3,570.54 357.05
1279087KHC36 400
pounds
Purchase Date: • H: 34.5
Nov. 21, 2020 in; W:
36 in; L: 24 in
Kitchen • Wooden
Cabinet and cabinet with
Prep Table flat plain table
• Color:
SN: wenge
18956KCPT6 • Capacity: 10 1 5,749 5,749 615.96 5,133.04 513.30
600
Purchase Date: pounds
Nov. 21, 2020 • H: 36 in;
W:
48 in; L: 26 in
TOTAL 9,748 1,044.43 8,703.57 870.36

25
 Table 9
Office Machinery & Equipment - sample

UNIT TOTAL
EST. COST, NET
# OF COST COST INPUT VAT DEPRECIATION
NAME IMAGE SPECIFICATIONS USEFUL OF VAT (IN
UNITS (IN (IN (IN PHP) (IN PHP)
LIFE PHP)
PHP) PHP)
Printer • Borderless
printing
SN: • Monthly
UKLO9371975 duty cycle:
282 up to
1,000 5 1 2,850 2,850 305.36 2,544.64 508.93

Purchase pages
Date: • Hi-Speed
Nov. 17, 2020 USB 2.0
connection
Laptop
Computers • Core i7
• RAM:
SN: 12GB
8OT6005PH • Intel HD 7 4 24,490 97,960 10,495.71 87,464.29 12,494.90
Graphics 520
Purchase • 14-inch
Date: size
Nov. 17, 2020
Air • Active
Conditioning Energy
unit Control
• 2-Way
SN: Auto 10 1 18,500 18,500 1,982.14 16,517.86 1,651.79
HSJHF892573 Swing
• With MF
Purchase Condenser
Date:
26
Nov. 17, 2020

• Fingerprint
Biometrics
Scanner Capacity: 500
• User
SN: Capacity: 500
DCLO9039457 • Record 15 1 5,500 5,500 589.29 4,910.71 327.38
Capacity:
50,000
Purchase
• Display: 2.8
Date:
inches TFT
Nov. 17, 2020
Screen
WiFi router • Wifi Speed:
50mbps
SN: • Connectivity:
GYHUJ789364 USB 5.0
10 1 1,995 1,995 213.75 1,781.25 178.13
• Capacity: No
Purchase maximum
Date: capacity
Nov. 17, 2020
TOTAL 126,805 13,586.25 113,218.75 15,161.12

27
 Table 10
Office Furniture & Fixtures - sample

UNIT TOTAL
EST. INPUT COST, NET
# OF COST COST DEPRECIATION
NAME IMAGE SPECIFICATIONS USEFUL VAT (IN OF VAT (IN
UNITS (IN (IN (IN PHP)
LIFE PHP) PHP)
PHP) PHP)
Office • Material:
Table MDF with
clear acrylic
SN: • Workstation
323568870 for 2Seater
• Includes 2
pcs mobile 10 2 2,499 4,998 535.5 4,462.5 446.25
Purchase
Date: Nov. cabinet
23, 2020 • Dimension:
W600 x
L2540 x
H1100 mm
Office • Material:
Chair Fabric
• Color: Gray
SN: or
HDUYGB7 Black
5 2 2,399 4,798 514.07 4,283.93 856.79
8326187 • Depth: 17″
• Starbase:
Purchase D22″
Date: Nov. • Height: 32″
23, 2020 – 36″

28
 Cash • Digital pin
safety box keypad
• Hidden lock
SN: with
DHGDEJH emergency
FV26ED keys Pre-
drilled holes
Purchase • Can be
Date: Nov. bolted in 10 1 4,200 4,200 450 3,750 375
23, 2020 walls or
cabinets
• Home,
Office or
Hotel Use
• Color: Gray
• Dimension:
L200
x W310 x H200m

File
Cabinet
• Material:
SN: Laminated Wood Color: Gray
098866776 • Dimension: 15 1 7,880 7,880 844.29 7,035.71 469.05
L1207 x W415 x
Purchase H915 mm
Date: Nov.
23, 2020
TOTAL 21,876 2,343.86 19,532.14 2,147.08

29
 Table 11
Store Machinery & Equipment - sample

UNIT TOTAL
EST. INPUT COST, NET
# OF COST COST DEPRECIATION
NAME IMAGE SPECIFICATIONS USEFUL VAT (IN OF VAT (IN
UNITS (IN (IN (IN PHP)
LIFE PHP) PHP)
PHP) PHP)
Cash Register
• Size: 14” x
SN: 12” x 9”
19024851SC8 • Weight 10.5
9121 kg 20 1 13,500 13,500 1,446.43 12,053.57 602.68
• Power
Purchase Consumption:
Date: Nov. 19, 20W
2020
• Size: 14” x
12” x 20”
Water • Heating
Power: 550W
Dispenser
• Cooling
Power:
SN: WD-350-
90W
54128 5 1 3,300 3,300 353.57 2,946.43 589.29
• Volume of
Hot
Purchase
Tank: 0.8L-
Date: Nov. 19,
2020 1.2L
• Volume of
Cooling Tank:
2.5L-3.0L

30
 CCTV

SN: • Size: 4¼” x

CTV0591GDS 3½”
A272 • Angle of view: 10 4 2,500 10,000 1,071.43 8,928.57 892.86
70degrees
Purchase • Lens: 4mm.
Date: Nov. 19,
2020
• Size: 39” x 8”
Air
x 13”
Conditioning
unit • Power
Consumption:
SN: 870W
HSJHF892573 • Cooling 12 1 18,500 18,500 1,982.14 16,517.86 1,376.49
Capacity:
10,150kj/h
Purchase
• Energy
Date: Nov. 19,
Efficiency
2020
Ratio: 11.7
TOTAL 45,300 4,853.57 40,446.43 3,461.31

31
 Table 12
Store Furniture & Fixtures - sample

UNIT
EST. TOTAL INPUT COST, NET
# OF COST DEPRECIATION
NAME IMAGE SPECIFICATION USEFUL COST VAT (IN OF VAT
UNITS (IN (IN PHP)
LIFE (IN PHP) PHP) (IN PHP)
PHP)
Modular
table

SN: MDT- Size: 60” x 45” x 32”

2448PF Capacity: 8 3 4,999 14,997 1,606.82 13,390.18 1,673.77
4pax – 6pax
Purchase
Date: Nov.
25, 2020
Small
table

SN: SM- Size: 30” x 25” x 32”

788567SD Capacity: 8 4 2,499 9,996 1,071 8,925 1,115.63
1pax – 2pax
Purchase
Date: Nov.
25, 2020
Chairs
• Size: 20”
SN: x 18” x
9987SCH
37” 6 20 1,449 28,980 3,105 25,875 4,312.50
• Capacity:
Purchase
Date: Nov. 1pax
25, 2020
TOTAL 53,973 5,782.82 48,190.18 7,101.90

32
 Table 13
Production Tools - sample

UNIT TOTAL COST,

INPUT
DATE OF # OF COST COST NET OF
NAME IMAGE SPECIFICATIONS VAT (IN
PURCHASE UNITS (IN (IN VAT (IN
PHP)
PHP) PHP) PHP)
• Nylon
handle
• Absorbs
50% less
heat
• Heat-
resistant up
Turners Nov. 28, 2020 to 5 55 275 29.46 245.54
450 degrees
• Sanitary-
sealed
handle
• L: 12 in; W:
3 in; Blade
Length: 5 in
• Durable
stainless
steel
construction
• 4-sided
design with
Grater Nov. 28, 2020 1 185 185 19.82 165.18
a different
size grater
per size
• With non-
slip base for
stability

33
 • H: 9 in; W: 6
in; L:7 in

• Built-in capacity indicators

for accurate portioning
• Can withstand temperatures
Food from -40 to 210 degrees
storage Nov. 28, 2020 Fahrenheit 5 200 1000 107.14 892.86
container • H: 9 in; W: 18 in; L:26 in

34
 • Durable, northern hard birch
wood construction
Wooden • Features a reversible design for
cutting Nov. 28, 2020 extended use and increased 3 150 450 48.21 401.79
board longetivity

• Built-in, anti-jam stacking lugs

for easy separation and lifting
Food pan Nov. 28, 2020 5 200 1000 107.14 892.86
• Impact-resistant
• H: 4 in; W: 13 in; L:21 in

• Durable 20-
gauge
stainless steel
• With riveted-
on handles to
Frying ensure
Nov. 28, 2020 longetivity 2 850 1700 182.14 1517.86
pan
and secure
connection
• Top diameter:
10 in; Gauge:
20 gauge
• Durable
stainless steel
construction
Cooking
Nov. 28, 2020 • With subtle 5 800 4000 428.57 3571.43
pan
satin finish
• Oven safe up
to 300

35
 degrees
Fahrenheit
• H: 3 in; Top
Diameter:
10 in

• High-
carbon, no
stain
German
cutlery steel
• Resists rust,
corrosion
and
Knife set Nov. 28, 2020 discoloration 1 2500 2500 267.86 2232.14
• Satin finish
stainless
steel
• Non-
marking
base

• Stainless
steel
construction
• 3-piece
design
Milk tea
Nov. 28, 2020 • Easy to 3 250 750 80.36 669.64
shaker
disassemble
and clean
16 oz.
• H: 8 in;
Bottom

36
 Diameter: 2.5 in;
Opening Diameter: 2

• Medium
weight; 18/0
Stainless stainless
steel
Nov. 28, 2020 steel 1 2000 2000 214.29 1785.71
utensils
• Medium
(set)
weight; L: 6 -
8.5 in

TOTAL 13,860 1,485 12,375

37
Table 14
Kitchen Supplies - supplies

UNIT TOTAL INPUT COST,

DATE OF # OF COST COST VAT (IN NET
NAME IMAGE SPECIFICATIONS
PURCHASE UNITS (IN (IN PHP) PHP) OF VAT
PHP) (IN PHP)
• Canvas
Waterproof
Apron
Nov. 30, • Black
Apron • Canvas-made 3 150 450 48.21 401.79
2020
with buttons
• 67.5cm*74.5cm-
26.57"*29.33"

• Washable
Nov. 30,
Hair net Pierre hairnet 10 5 50 5.36 44.64
2020
• Black

• Biodegradable
Trash trashbag
Nov. 30,
bag • Large 1 250 250 26.79 223.21
2020
(pack) • SKU: 112722

38
 Nov.
Dishwashing
30, 500 ml. SKU: 106446 7 40 280 30 250
Liquid
2020

• Cast
Disposable Nov. Polyethylene Disposable gloves
Gloves 30, • Large 5 35 175 18.75 156.25
(pack) 2020 • SKU:
118722
• Premium
Foam Lined
Gloves
Nov. • Large
Rubber
30, • 13” Cuff 2 100 200 21.43 178.57
Gloves
2020
gloves
SKU:
120998
• Cloth
Nov. potholder
Potholder 30, • Large 10 5 50 5.36 44.64
2020 • SKU:
116467

• Heavy-duty
Nov. plastic
Trash bin 30, construction 3 500 1500 160.71 1,339.29
2020 • H: 30 in; W:
46.89 in; L: 20in

TOTAL 2,955 316.61 2,638.39

39
 Table 15
Office Supplies - sample

UNIT TOTAL INPUT COST, NET

DATE OF # OF
NAME IMAGE SPECIFICATIONS COST (IN COST (IN VAT (IN OF VAT (IN
PURCHASE UNITS
PHP) PHP) PHP) PHP)

• Size: 8’’ x
Record Dec. 1, 13”
1 80 80 8.57 71.43
Book 2020 • 80 leaves

Colors: red, black and blue

Dec. 1,
Ballpen 5 20 100 10.71 89.29
2020

• Size: 8.5’’
x
11”
Bond Dec. 1, • 500sheets
1 300 300 32.14 267.86
paper (rim) 2020 • 70gsm
• Color:
Ultra
white

40
 • Mini-
desktop
type
Dec. 1, • Display:
Calculator 16 digits 1 500 500 53.57 446.43
2020
• Power:
Solar and
battery

Dec. 1,
Stapler Large-sized 1 90 90 9.64 80.36
2020

Dec. 1,
Paper clips Assorted plastic 1 80 80 8.57 71.43
2020

Dec. 1,
Pencil 5 10 50 5.36 44.64
2020

41
 Dec. 1,
Scissors 2 45 90 9.64 80.36
2020

Dec. 1,
Cutter 2 45 90 9.64 80.36
2020

Dec. 1,
File holder Plastic file dividers 2 150 300 32.14 267.86
2020

Dec. 1,
Eraser Rubber eraser 2 15 30 3.21 26.79
2020

42
 • Capacity:
3.2 galon
• Dimensions:
10 1/2" d x
12 3/4" h
Dec. 1, • Weight: 4
Trash bin 2 1,000 2,000 214.29 1,785.71
2020 lbs
• Setting:
Indoor
• Material:
Stainless
Steel
TOTAL 3,710 397.50 3,312.50

Table 16
Store Tools/Supplies - sample

UNIT TOTAL INPUT COST, NET

DATE OF # OF
NAME IMAGE SPECIFICATIONS COST COST (IN VAT (IN OF VAT (IN
PURCHASE UNITS
(IN PHP) PHP) PHP) PHP)
• Size: 8” x
5” x 1”
• Type:
Dec. 3,
Plates Stainless 25 50 1,250 133.93 1,116.07
2020
• Maximum
Load: 2 pcs. of taco

43
 • Size: 7” x 3” x 1 & 5” x 3” x 1
Type:
Stainless
Divided Dec. 3, • Maximum capacity: 150
25 20 500 53.57 446.43
Sauce Dish 2020 grams and 100 grams

• Thickness:
Silverware Dec. 3, 3.5mm
3 350 1,050 112.50 937.50
(set) 2020 • Type:
Stainless

• Thickness:
1mm
Dec. 3, • Length:
Thong 15 55 825 88.39 736.61
2020 10”
• Weight:
25g

• Size: 18” x 12”

Dec. 3,
Food tray • Type: Durable 5 50 250 26.79 223.21
2020
plastic

44
 • Height: 7” Weight: 15.4g
Stainless Dec. 3, • Type:
25 20 500 53.57 446.43
straw 2020 Reusable
stainless steel

• Thickness:
Hand 0.024mm
Dec. 3,
gloves • Type: 30 50 1,500 160.71 1,339.29
2020
(pack) Transparent
plastic

• Sizes: S
(36”x24”x30”);
M
Laboratory Dec. 3, (40”x35”x31”);
L 25 200 5,000 535.71 4464.29
gowns 2020
(40”x27”x32”) Thickness:
0.25mm
• Type: Cotton

• Diameter: 3.5”
Beaker Dec. 3,
• Height: 5” Capacity: 25 150 3,750 401.79 3,348.21
Mugs 2020
600ml

45
 • Size: 5” x
Dec. 3, 5.5”
Tissue 50 30 1,500 160.71 1,339.29
2020 • Sheets per
(pack)
pack: 1,000

• Type: Spin
Dec. 3, Mop
Mop 1 369 369 39.54 329.36
2020 • Head Mop:
Microfiber

• Pole length:
35”
Broom
Dec. 3, • Type:
with 1 450 450 48.21 401.79
2020 Plastic
Dustpan
• Weight:
1.17kg

• Heavy-duty
plastic
Dec. 3, construction
Trash bin 3 500 1,500 160.71 1,339.29
2020 • H: 30 in; W:
46.89 in; L:
20.31 in

TOTAL 18,444 1,976.14 16,467.86

46
f. PRODUCT COST
A product cost consists of the sum of all factory costs incurred to make one unit of product and is developed in compliance
with GAAP for financial reporting purposes. Product costs are related to making or acquiring the products or providing the
services that directly generate the revenues of
an entity. (Cost Accounting by Raiborn &
Direct Materials Requirement - sample
Kinney) The presented unit cost of each taco and milk tea is based on direct materials needed in producing one large-
sized taco tortilla, and a 500-ml serving of milk tea, respectively.
Table 17
List of Direct Materials of Adobo Taco
ADOBO VARIANT
• Direct Materials Requirement
• Tabular Presentation of ITEM
QUANTITY
REQUIRED
UNIT OF
MEASUREMENT
COST PER UNIT
MEASUREMENT UNIT COST
1. Item
Chicken 50 grams ₱0.17 ₱8.42
2. Unit of Measurement
3. Quantity Taco Shells 1 piece 6.53 6.53

4. Unit Cost Lettuce 10 grams 0.22 2.21

5. Amount Cheese 10 grams 0.19 1.87
6. Units produced
Tomatoes 5 grams 0.07 0.34

Direct material – any material that can White Onions 5 grams 0.04 0.20
be easily and economically traced to a Cucumber 5 grams 0.06 0.31
product. Sauce Mix 2 grams 0.84 1.68

TOTAL ₱21.56

Costing based on one large tortilla of taco*

47
 • Direct labor Cost
1. Manpower/labor requirements and monthly salary (with payroll taxes – SSS, Philhealth, HDMF, taxes)
2. Rate per day and per hour
3. Production per hour
4. Total Direct labor per batch
Table 18 Direct Labor Cost - sample 5. Units produced

TOTAL DIRECT LABOR COST

DIRECT DIRECT
LABOR LABOR
HOURS TACO TACO COST COST
HOURLY DAILY
EMPLOYEE WORKED PRODUCED PRODUCED PER PER
RATE
PER DAY
RATE
PER DAY PER HOUR UNIT BATCH Direct labor – refers to the time spent by
individuals who work specifically on manufacturing a
product or performing a service. (Raiborn & Kinney,
Cook 1 ₱50.34 8 ₱402.75 18.75 ₱1.34 ₱134.25 2018))
Cook 2 50.34 8 402.75 300 18.75 1.34 134.25
units
Total ₱100.69 ₱16.00 ₱805.50 37.5 ₱2.68 ₱268.5

Direct Labor Cost

Also contributing to the product costs of each variant are the direct labor requirements in
producing one large-sized taco tortilla and a 500-ml serving of milk tea. Presented above are the
schedules for total direct labor cost.

48
 • Schedule of Overhead and Expenses
1. Indirect materials – are needed for the completion of finished product which are either minimal or complex in nature
that they cannot be easily traceable to a product such as lubricating oil, grease, cleaning rags, brushes etc. ( Cost
Accounting & Cost Management by Vicente)

Table 19
Indirect Materials of Adobo Taco - sample
ADOBO VARIANT

ITEMS REQUIRED UNIT COST

Table 20
Laurel ₱0.25 Depreciation Expense - sample
DEPRECIATION
Pepper 0.08

Soy Sauce 0.30 COMPONENT ANNUAL

DEPRECIATION
Vinegar 0.11 Production Machinery and Equipment ₱7,669.75
Production Furniture and Fixtures 870.36
Red Onion 0.23
Office Machinery and Equipment 15,161.12
TOTAL ₱0.97 Office Furniture and Fixtures 2,147.08
Store Machinery and Equipment 3,461.31
Store Furniture and Fixtures 7,101.90
Leasehold Improvements 91,095.71
TOTAL ₱127,507.23

2. Depreciation – is the annual portion of the

Overhead Administrative expenses Selling Expenses T
cost of a tangible asset such as buildings, machineries,
and equipment charged as expense for the year.
(Fundamentals of Accounting by Ong)

49
 3. Rent – an expense which is the cost incurred by a business to utilized property as office, factory, storage or general
use space. Rent is allocated based on the floor area of the business.
https:// www.investopedia.com

Table 21
Table 22 Utility Schedule – Electricity (sample)
Rent schedule - sample

Area Percentage Monthly Annually

RENT
Production Area 10.50 sqm 18% 1,530.00 18,360.00

COMPONENT AREA PERCENTAGE TOTAL Store Area 40 sqm 69% 5,865.00 70,380.00

(SQM.) ANNUAL Office Area 7.50 sqm 13% 1,105.00 13,260

COST TOTAL 58 sqm 100% 8,500.00 102,000.00

Fixed 10.5 19% ₱180,000.00 Table Utility Schedule - Water (sample)

Overhead
Selling 38 68% 651,428.57 Area Percentage Monthly Annually
Expenses Production Area 10.50 sqm 18% 510.00 6,119.99

Administrative 7.5 13% 128,571.43 Store Area 40 sqm 69% 1,955.00 23,459.97
Expenses Office Area 7.50 sqm 13% 368.33 4,420

TOTAL 56 100% ₱960,000.00 TOTAL 58 sqm 100% 2,833.33 34,000.00

Table Utility Schedule – Telecommunication (sample)

Area Percentage Monthly Annually

4. Utilities – is an expense related to the use of
electricity, fuel, water, and telecommunications Production Area 10.50 sqm 18% - -
facilities. Store Area 40 sqm 69% 1,192.08 14,304.96

Office Area 7.50 sqm 13% 224.59 2,695

TOTAL 58 sqm 100% 1,416.67 17,000.00

50
Table 23
Leasehold Improvements Schedule - sample Table 24 Indirect labor cost for the two cooks which is the Employer’s contribution -
sample
ALLOCATION OF DEPRECIATION FOR LEASEHOLD IMPROVEMENTS
SSS, PhilHealth, HDMF, (COOK)
COMPONENT AREA PERCENTAGE TOTAL ANNUAL COST
EE ER PRODUCTION ANNUAL
(SQM.) OVERHEAD
CONTRIBUTION CONTRIBUTION SHARE COST
Fixed Overhead 10.5 18% ₱16,397.23 ₱840.00 ₱1680.00 100% ₱1680.00 ₱20,160.00
Selling Expenses 40 69% 62,856.04 366.50 366.50 100% 366.50 4,398.03
Administrative 7.5 13% 11,842.44 418.86 418.86 100% 418.86 5,026.32
Expenses ₱1,625.36 ₱2,465.36 100% ₱2,465.36 ₱29,584.35
TOTAL 100% ₱91,095.71

Table 25 Manufacturing Overhead Schedule - sample

58
MANUFACTURING OVERHEAD
Component Annual
Depreciation ₱127,507.23
Utilities 170,000.00

• Please take note that the cost of indirect Rent 180,000.00

materials is considered Variable Indirect Labor (including share of Supervisor 30% of Annual 79,966.32
Gross Pay)
Manufacturing Overhead
Fixed Factory Overhead (Annually) 557,473.55
Annual Capacity 117,473.68
FIXED MANUFACTURING OVERHEAD PER UNIT ₱4.75
5. Salary of supervisor

51
 6. SSS, Phil health, HDMF, EC (with supporting schedule – broken between expense and overhead)

Table 26. Payroll Register - sample

PAYROLL REGISTER

DAILY DAILY SALARY DEDUCTIONS

RATE (8 RATE (6 HOURLY MONTHLY
JOB TITLE NET PAY
HOURS) HOURS) RATE RATE TOTAL
SSS PHILHEALTH PAG-IBIG
DEDUCTIONS
Assistant
₱550.00 - ₱68.75 ₱14,300.00 ₱580.00 ₱250.25 ₱286.00 ₱1,116.25 ₱13,183.75
Manager
Accountant - - - 10,000.00 - - - - 10,000.00
Bookkeeper 402.75 ₱302.06 50.34 7,853.63 320.00 175.00 157.07 652.07 7,201.55
Cook 1 402.75 - 50.34 10,471.50 420.00 183.25 209.43 812.68 9,658.82
Cook 2 402.75 - 50.34 10,471.50 420.00 183.25 209.43 812.68 9,658.82
Cashier 1 375.90 281.93 46.99 7,330.05 300.00 175.00 146.60 621.60 6,708.45
Cashier 2 375.90 281.93 46.99 7,330.05 300.00 175.00 146.60 621.60 6,708.45
Service Crew 1 350.00 262.50 43.75 6,825.00 280.00 175.00 136.50 591.50 6,233.50
Service Crew 2 350.00 262.50 43.75 6,825.00 280.00 175.00 136.50 591.50 6,233.50
Dishwasher 1 350.00 262.50 43.75 6,825.00 280.00 175.00 136.50 591.50 6,233.50
Dishwasher 2 350.00 262.50 43.75 6,825.00 280.00 175.00 136.50 591.50 6,233.50
Total ₱3,910.05 ₱1,915.91 ₱488.76 ₱95,055.73 ₱3,460.00 ₱1,841.75 ₱1,701.13 ₱7,002.89 ₱88,053.84

52
Selling Expenses
Table 27. Selling Expense Portion of Payroll Schedule - sample
Net Annual Annual
Daily Daily Monthly Expenses Selling
Hourly Monthly Salary Deductions Selling
Job Title Rate Rate Pay Expense
Rate Rate Pag- Total Monthly Rate Share
(8hrs) (6hrs) SSS PhilHealth IBIG Deductions *12
Assistant
Manager ₱550.00 - ₱68.75 ₱14,300 ₱580.00 ₱250.25 ₱286.00 ₱1,116.25 ₱13,183.75 ₱171,600 20% ₱34,320.00
Cashier 1 375.90 281.93 46.99 7,330.05 300.00 175.00 146.60 621.60 6,708.45 87,960.60 100% ₱87,960.60
Cashier 2 375.90 281.93 46.99 7,330.05 300.00 175.00 146.60 621.60 6,708.45 87,960.60 ₱87,960.60
100%
Service Crew 1 350.00 262.50 43.75 6,825.00 280.00 175.00 136.50 591.50 6,233.50 81,900.00 ₱81,900.00
100%
Service Crew 2 350.00 262.50 43.75 6,825.00 280.00 175.00 136.50 591.50 6,233.50 81,900.00 100% ₱81,900.00

Dishwasher 1 350.00 262.50 43.75 6,825.00 280.00 175.00 136.50 591.50 6,233.50 81,900.00 ₱81,900.00
100%
Dishwasher 2 350.00 262.50 43.75 6,825.00 280.00 175.00 136.50 591.50 6,233.50 81,900.00 ₱81,900.00
100%
TOTAL ₱2,701.80 ₱1,613.85 ₱337.73 56,260.10 ₱2,300.00 ₱1,300.25 ₱1,125.20 ₱4,725.45 ₱51,534.65 ₱675,121.20 100% ₱675,121.20

Table 28. Employer’s Share Schedule for Sales-related Employees - sample

Selling Expense Annual Selling

Employee Monthly Salary SSS PhilHealth HDMF Total Employer's Share Selling Expense
Share Expense
Cashier 1 ₱7,330.05 ₱600.00 ₱175.00 ₱146.60 921.60 100% 921.60 ₱11,059.21
Cashier 2 7,330.05 600.00 175.00 146.60 921.60 100% 921.60 11,059.21
Service Crew 1 6,825.00 560.00 175.00 136.50 871.50 100% 871.50 10,458.00
Service Crew 2 6,825.00 560.00 175.00 136.50 871.50 100% 871.50 10,458.00
Dishwasher 1 6,825.00 560.00 175.00 136.50 871.50 100% 871.50 10,458.00
Dishwasher 2 6,825.00 560.00 175.00 136.50 871.50 100% 871.50 10,458.00
TOTAL ₱41,960.10 ₱3,440.00 ₱1,050.00 ₱839.20 ₱5,329.20 100% ₱5,329.20 ₱ 63,950.42

53
 Administrative Expenses
Table 29
Administrative Expense Portion of Payroll Schedule - sample
Annual Administrative
Salary Deductions Expenses Share Expense
Daily Rate Daily Rate Hourly
Job Title Monthly Rate Net Monthly Pay
(8hrs) (6hrs) Rate Total Monthly Rate
SSS PhilHealth Pag-IBIG Deductions *12
Assistant
Manager ₱550.00 - ₱68.75 ₱14,300.00 ₱580.00 ₱250.25 ₱286.00 ₱1,116.25 ₱13,183.75 ₱171,600.00 50% ₱85,800.00

Bookkeeper 402.75 ₱302.06 50.34 7,853.63 320.00 175.00 157.07 652.07 7,201.55 94,243.50 100% 94,243.50

Accountant - - - 10,000.00 - - - - 10,000.00 120,000.00 100% 120,000.00

Total ₱952.75 ₱302.06 ₱119.09 ₱32,153.63 ₱900.00 ₱425.25 ₱443.07 ₱1,768.32 ₱30,385.30 ₱385,843.50 100% ₱300,043.50

Table 30
Employer’s Share Schedule for Administrative-related Employees - sample
Total Admin
Employer's Expense
Admin Annual Admin
Employee Monthly Salary SSS PhilHealth HDMF Share Share
Expense Expense

Assistant Manager ₱14,300.00 ₱1,160.00 ₱250.25 ₱286.00 ₱1,696.25 100% ₱1,696.25 ₱20,355.00

Bookkeeper 7,853.63 640.00 175.00 157.07 972.07 100% 972.07 ₱11,664.87

Accountant - - - - - - - -

Total 22,153.63 1,800.00 425.25 443.07 2,668.32 100% 2,668.32 ₱32,019.87

54
 7. Total Product Cost

Table 31 8. Waste Disposal

Total Unit Cost per Unit Schedule - sample

TOTAL UNIT COST Cleanliness and sanitation shall be

Direct Direct Variable Fixed maintained at all times at the business
Variant Material Labor per Overhead Overhead Total Unit premises. There shall be trash bins each for
per unit unit per unit per Unit Cost
biodegradable, nonbiodegradable and
Adobo Taco ₱21.56 2.69 0.97 4.75 ₱29.97 recyclable wastes, and which shall be available
Humba Taco ₱23.13 2.69 1.94 4.75 ₱32.51 at the office, store and production areas. These
Hamonado Taco ₱23.13 2.69 2.25 4.75 ₱32.82 trash bins shall have garbage bags inside for
Bistek Taco ₱31.16 2.69 1.43 4.75 ₱40.03 easier disposal. The garbage bags for
Classic Taco ₱31.16 2.69 1.78 4.75 ₱40.38 biodegradable and non-biodegradable shall be
Milk Tea ₱22.60 2.69 0.32 4.75 ₱30.36 disposed at night after operating hours to the
commercial building’s waste storage area,
which are then collected by the garbage
collectors every morning. Whereas, recyclable
wastes are to be recycled if such are still completely usable, or donated to non-profit environmental organizations.

GOOD LUCK!

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REQUIREMENTS

Ninth Week Output:

You are now ready to submit your Process Flow Chart, production capacity and business location & floor area for your
feasibility study. Each group will submit the following:
1. Your step by step process/flow chart with time duration.
a. Purchase process – description and process time
b. Pre-production process – description and process time
c. Selling process – description and process time
d. Production schedule for one week
e. Store schedule
f. Office Schedule
2. Your production capacity
a. Number of units produced per cycle or batch
b. Number of cycle per day
c. Manpower Schedule/shifting
3. Your Business location
a. Vicinity map
b. Actual façade of the location
4. Your Floor plan of the business (all floors)
a. Production area lay-out and specification
b. Office lay-out and specification
c. Store lay-out and specification

Tenth Week Output:

You are now ready to submit your Floor plan, Property, Plant & Equipment for your feasibility study. Each group will
submit the following:
1. Your Property, Plant and Equipment
a. Separate tabular presentation for

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 1. Production machinery and equipment – Table 7
2. Production furniture and fixtures – Table 8
3. Office machinery and equipment – Table 9 Contents of the table:
1. Name
4. Office furniture and fixtures – Table 10 2. Image
5. Store machinery and equipment – Table 11 3. Date of purchase
4. Serial number
6. Store furniture and fixtures – Table 12 5. Estimated useful life
7. Production tools – not subject to depreciation -Table 13 6. Unit required
8. Kitchen supplies – Table 14 7. Unit Cost
8. Total Cost
9. Office supplies – Table 15 9. Total Depreciation
10. Store supplies – Table 16

Eleventh Week Output:

You are now ready to submit your Product Cost for your feasibility study. Each group will submit the following next week:
1. Your Direct Materials Requirement
2. Your Tabular presentation of
a. Item
b. Unit measurement
c. Quantity
d. Unit Cost
e. Amount
f. Units produced
3. Your Direct labor Cost
a. Manpower/labor requirements and monthly salary (with payroll taxes -SSS, Phil health, HDMF
b. Rate per day and per hour
c. Production per hour
d. Total Direct labor per batch
e. Units produced
4. Your Schedule of Overhead and Expenses
a. Indirect materials
b. Depreciation
c. Rent
d. Utilities
e. Salary of supervisor
f. SSS, Phil Health, HDMF, EC ( with supporting schedule – broken between expense and overhead)
g. Total product cost
h. Waste disposal

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 Rubrics

Criteria (1- 2 Points) (3-4 Points) (5 Points) Score

Fair Good Very Good
Punctuality in Submits the output Submit the output Submits the output
submission one or more weeks the following week on time.
after the deadline. after the deadline.
Completeness in Incomplete in many Complete in most Complete in all
contents aspects and includes aspects and aspects and
few requirements includes most includes all
requirements requirements
Analysis and Presents incomplete Presents an Presents an
utilization of analysis of data; and insightful and insightful and in-
project failed to use project analysis of most of depth analysis of
development development the data; uses all data; uses many
concepts concepts some project project
development development
concepts concepts.
Overall Presentation is Presentation is not Presentation is
presentation generally dull; so appealing; not generally
hurriedly done. seriously done appealing;
artistically and
neatly done
Total maximum points 20

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