Question

I want to do a paraphrase and add information on this topic to this paragraph

Il etisalat 12:12 PM @ 87% Notes 23 February 2020 at 12:11 PM The costing process product of electric fan is as follows: First of all we need raw materials such as, steel, sheets, aluminum, winding...etc. The payable wages of labour which is the amount of money paid to worker who makes fan and the Manufacturing overheads which is all indirect cost incurred during the production process. Such as labor's gloves, rental costs, utility bills and so on. All these cost can be done simultaneously. After that, we can move to the next process which is department A in this department we will collect the parts of fan then, we will move to department B and here we will package the fans. So, after that the fan will be finished and ready to be sold. Finally we will get the cost of good sold in the market and we find how much add to profit?

Answer 1

The costing process of an electric fan involves estimation of both direct and indirect costs. The first step begins with the estimation of prime costs - direct material and direct labor. The quantity and cost of various raw materials such as steel, sheets, aluminium, winding etc has to be calculated. The labor cost which is the amount paid to workers who work in the production and assembling process of fan is calculated. Along with the direct costs, there are also indirect costs or manufacturing overheads involved in the process such as rent costs, utility bills, etc.

Then the work of production department gets over. Then we move to department A, where all the parts of the fan are collected and assembled. After that they are moved to department B, where the finally packaging process takes place. And after this the fans are ready to be sold in the market. The cost of goods sold is estimated and the margin of profit is added to it to derive the final market price.