5.

0 COST
5.1 PRIME COST

1) DIRECT MATERIAL COST

BI
L

MATERIAL

UNIT

1
2
3
4
5
6

LED LIGHT
HOT GLUE
NYLON ROPE
COATING PAINT
ON/OFF SWITCH
TRIPLE A
BATTERY
WIRE (BLUE/
RED)
STAINLESS
STEEL

5MM
5ML
25CM
70ML
5G
1.5VOLT

7
8

9
10

THERMOS
VACUUM FLASK
POLYCARBONAT
E PLASTIC
TOTAL

QUANTIT
COST
Y
PER UNIT
(RM)
1
2
1
5
1
1
1
2
1
1
1
2

8CM8CM

TOTAL
PRICE
(RM)
2
5
1
2
1
2

21

13

30

45

7CM10CM
12.5CM10
CM
19.5CM10
CM
19.5CM10
CM
2.5CM10C
M

2) DIRECT LABOR COST

BIL

DIRECT
LABOR
COST
WAGES
LABOR

NUMBE
R OF
LABOR
20

WORKING
TIME
(HOUR)
10

PAYMENT/
PER HOUR
(RM)
3

OVERTIME/
PER HOUR
(RM)
3.50

a) Wages labor

= Working time x payment/per hour x one month

= 10 x 3 x 30
= RM 900
b) Total direct labor cost = Number of labor x wages labor
= 20 x 900
= RM 18, 000
5.2 PRODUCTION COST

1) OVERHEAD COST
BIL
1
2
3

OVERHEAD COST
EMPLOYEE SALARIES
ADMINISTRATION COST
UTILITIES

RM
10000
1000
400
TOTAL
11
400

2) FIXED COST
BIL

FIXED COST

RM

1
2
3
4

FACTORY RENTAL
FACTORY INSURANCE
BUSINESS LICENSES
DEPRECIATION ASSETS AND EQUIPMENT
TOTAL

500
100
100
200
900

3) VARIABLE COST
Variable cost based on per month
Bottles produce per day
= 40 bottles
Bottles produce per month = 40 x 30days = 1200 bottles
Raw material cost per month
= 1200 x 45 = 54000
BIL

VARIABLE COST

RM

RAW MATERIAL COST

3
4

TAX ON RAW MATERIALS

LABOR COST
TOTAL

54
000
200
18
000
72
200

5.3 PROFIT OR NON PROFIT

1) Our company allocated a capital of RM 85 000.

2) Therefore, for one month our company can produce 1200 bottles where
for one day our company produces 40 bottles.
3) Furthermore, our company sells the bottles at RM 85 each.
4) Total profit and net profit is as calculate below :

i.

Profit
Price of the product x total of bottles produce per month
= RM 85 x 1200
= RM 102 000

ii.

Net profit/ Gross profit

Sales revenue Total production cost
= RM 102 000 RM 84 500
= RM 17 500

5) Based from the sales of product our company net profit is RM 17 500

CAPITA
L (RM)

TOTAL
PRODUCTION
(RM)

PRICE OF
PRODUCT
(RM)

SALES
REVENUE
(RM)

NET PROFIT/
GROSS
PROFIT (RM)

85 000

84 500

85

102 000

17 500