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Industrial Costing System

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  • The system aims to provide a sound basis for determining the cost of finished units, semi-finished units and works in progress at the end of the financial period in order to reach the result of business and the profit for the period properly.
  • The system also aims to control and monitor production costs to keep them at the lowest possible level and to ensure optimum use of the factors of production (material - wages - machines).
  • The objectives of the system include providing accounting data that helps in the preparation of planning budgets according to cost centers and helps in monitoring workflow in various cost centers.

System Features

  • The possibility of dividing the factory into production centers or production departments.
  • Recording of job orders and the time estimated to finish the job order as well as the type and quantity of units to be produced.
  • Identify stages of production for each job order and identifying the start and end dates of work for each stage of production.
  • Issue items for each stage of the job orders, as well as actual working hours per worker and also the working hours for the machines used in this stage.
  • Calculation of the cost of material, wages of workers and depreciation of machines for each stage based on the data available in the inventory module, human resources module and fixed assets module.
  • The possibility of recording the estimated (standard) costs for each production stage from the stages of the job order.
  • Extracting detailed reports on the costs of each stage (direct material - direct wages – direct machines).
  • Charging each stage or job order with the assessed percentage of indirect expenses. (Material - wages - machines).
  • Choose a basis for the charging of the indirect costs: Based on the total cost of direct material or direct labor cost or direct machines depreciation cost or the total working hours of workers or total working hours of machines or the total direct costs.
  • Charging each job order with its own costs of marketing and administrative costs.
  • Generate a report on the summary of production costs for each job order (actual and estimated) and determining the cost of the produced unit in the job order (actual and estimated).
  • Adding the product of each job order (whether finished or semi-finished) to inventory using the actual cost of unit immediately upon the closure of the job order.
  • Create journal entries for items issue and production to the accounting system as well as registering the cost of wages and depreciation cost.