Q3. How you do costing of Plastic & Casting parts.

Question

Accepted Answer

Costing of plastic and casting parts involves analyzing material costs, production processes, and overhead expenses.

Analyze the material costs by considering the type and quantity of plastic or casting material required.
Evaluate the production processes involved in manufacturing the parts, including molding or casting techniques.
Consider the labor costs, machine costs, and energy costs associated with the production processes.
Factor in the overhead expenses such as facility costs, maintenance costs, and administrative expenses.
Calculate the total cost by summing up the material costs, production costs, and overhead expenses.
Use cost estimation techniques like activity-based costing or standard costing to determine the cost per unit.
Consider any additional costs like transportation, packaging, or quality control.
Regularly review and update the costing process to account for changes in material prices or production methods.

Accepted Answer

The formula used to calculate manufacturing cost is:

Manufacturing cost = Raw materials + Labor costs + Allocated manufacturing overhead.

Cost of raw materials = Beginning inventory + Purchases added - Ending inventory.

Cost of raw materials + Labor costs (minus general admin costs) + Manufacturing overhead

Accepted Answer

First of all, we should check the raw material properly

Must then decide the price.

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