ANALYSIS OF THE CALCULATION

OF COST OF PRODUCTION WITH

THE FULL COSTING METHOD AS
THE BASIS FOR DETERMINING
THE SELLING PRICE OF
KEMAWI ART PRODUCTS

Moh. Fajar S
The vision and mission of national development is to improve the welfare of the people as widely as possible. Small and Medium
Enterprises have a very important role in the life of the small community, some of which are as a means of reducing poverty, a
means of leveling the economic level of the lower class people, and providing foreign exchange for the state. Development of Data
on Micro, Small and Medium Enterprises (MSMEs) and Large Enterprises (UB) in 2017-2018 from the small business unit sector
has increased by 3.44% while the medium business units amounted to 3.54% (Kemenkopukm, 2013)

BPS 2014 data also shows that SMEs contributed greatly in providing employment opportunities by 96.99 percent to the formation
of GDP of 60.34 percent. SMEs also contributed to increasing the country's foreign exchange in the form of export revenues of
27,700 billion and created a role of 4.86% of total exports.

In Banyumas Regency, there are many MSMEs affected by Covid 19, but with government assistance. At least the MSMEs can
breathe a little to pay for production costs. Production costs are important for the management of a business in order to build their
business and compete with other local products. In Banyumas, there is an UMKM by Demas Adi Wicaksono called Kemawi Art.
Where this UMKM is engaged in wood art and wood interior design.
Based on the above background, the researcher will discuss the accounting for the production costs of MSMEs with the research title
"Analysis of the Calculation of Cost of Production with the Full Costing Method as the basis for Determining the Selling Price of
Kemawi Art Products
Cost Accounting

The cost components are grouped into several accounts based on the main function of the company's

activities: production costs, marketing costs, administrative and general costs. By volume of production:

variable costs and fixed costs. Based on the object being financed: direct costs and indirect costs. Based on

the accounting period loading: capital expenditures and output expenditures.

FULL COSTING
Mulyadi (2015) explains that determining the cost of a product is to take the cost elements into account in the cost of production. In calculating
the cost of production costs, there are two approaches, namely the full metode cost and the variable cost.
Full costing is a method of determining the cost of goods manufactured which takes into account all elements of production costs into the cost of
production which consists of raw material costs, direct labor costs and factory overhead costs, both variable and fixed.

The full costing approach, which can be known as a traditional approach, produces an income statement where costs are organized and presented
based on production, administration and sales functions. The income statement resulting from this approach is widely used to meet external
parties, therefore the system must be adjusted to generally accepted accounting principles to ensure the information presented in the report. In the
full costing method, the calculation of the cost of goods manufactured and the presentation of the income statement is based on the cost function
approach, so that what is referred to as production costs are all costs related to the production function, either directly or indirectly, fixed or
variable.
Calculation Of The Full Costing Cost Of Production

Raw Material Costs Rp. xxxxxxx

Direct labor costs Rp. xxxxxxx
Fixed Factory Overhead Costs Rp. xxxxxxx +
Cost of goods sold Rp. xxxxxxx
FRAMEWORK OF THINKING
Production Process
With high creativity it will make wood crafts more beautiful to look at. Not only that, the type of wood used will affect
the handicraft results. The steps of working on wood crafts include:
a. Cut plywood to make it easier to make. The size commonly used is A4. The tools used to cut wood are different
from one another.
b. Trace or copy the wood craft pattern that will be made using carbon copy paper. Use a paper clip to prevent the
image from moving. A straight line drawing pattern can be made using the ruler tool.
c. Make sure that the image is well patterned.
d. Start sawing following the pattern that has been drawn.
e. The results of the pattern that have been sawed are sanded to make it smooth and neat.
f. The product is painted or varnished to produce a more artistic work
The comparative analysis of the calculation of the cost of goods manufactured using the full costing method
can be seen in table 3.4.
Tabel 3.4 The Total Cost Of Goods Manufactured
Information Full Costing

Raw Material Cost Rp. 3.350.000

Direct labor Cost Rp. 300.000

Fixed Overhead Cost Rp. 800.000

The Total Cost Of Goods Manufactured Rp. 4.450.000

 Tabel 3.5 Cost
Production
Information Total Cost

Wood Material Rp. 37.000

Nails Rp. 5.000

Glass Rp. 13.000

Total Rp. 55.000

After calculating the cost of production by the company then it can be calculated the selling price for the product unit
the calculations are made as follows:
Selling price = total production costs: production costs
= Rp. 4.450.000 : Rp. 55.000
= Rp. 80.000/pcs
 SUMMARY
1 Summary
This study aims to answer the formulation of the problem, based on the results of the analysis and discussion by the author, the results of the
study can be concluded that:
1. The full costing method is more profitable for the company because it will impose all costs that affect the production process, resulting in a more
accurate cost of goods manufactured.
2. according to calculations with the full cost method of Rp. 80,000 / pcs. However, an increase in the percentage of expected profit is ± 45% and
causes the selling price offered by the company to be higher than according to the full cost method with the percentage of profit.