PAINTED SHOES BUSINESS

By: Astrid Rudyanto (200950058) Agietia Muharrami (200950360) Elise Mustika (200950013) Dewi Yanti (200950309)

BACKGROUND Long time ago, shoes are only served as gaiters but now shoes become part of a tool of self expression and status. All people whether young and old, male or female are not separated from the daily use of the shoes. Now the shoe painting is a trend among young people. The definition of good shoes is not only the interesting shape and color but also the comfort ability when they are worn. Young people were identical with dynamic, energetic and fashionable; it's no wonder when painted shoes become a trend in their lives. Besides, interesting appearance, request able model and cheap price make them more popular. That s why we try to open a painted shoes business. The main idea of painted shoes is changing white flat shoes into colorful shoes that suit young people s style. There are so many shoes that can be changed into painted shoes, such as Converse, Vans, etc.

ABOUT US Our business is making ordered-painted shoes in a bulk named Shoe Gallery . It is hand-made shoes.We sell it to reseller or online retailer. We have catalogue but we receive special order with different models in large amount. For the shoes, we prefer choose Vans shoes because this model is easy to be painted. If there are deliveries, we charge delivery cost according to the region (but only in Indonesia). We deliver it using JNE. Here is the delivery cost per bulk: City Ampana/Tojo Una Una Banawa/Donggala Banggai Bungku/Kolonedale Buol Jabodetabek Luwuk Other Kab. Banggai Other Kab. Banggai Kepulauan Other Kab. Buol Other Kab. Donggala Other Kab. Morowali Other Kab. Parigi Moutong Other Kab. Poso Other Kab. Tojo Una Una Other Kab. Toli-toli Palu Parigi Poso Tolitoli Delivery cost (Rp) 45.000 35.000 57.000 54.000 56.000 15.000 47.000 61.000 61.000 61.000 46.000 61.000 51.000 58.000 56.000 56.000 31.000 39.000 45.000 45.000 Delivery time (in days) 3 4 3 4 4 1-3 4 6 5 6 6 6 6 6 5 6 2-3 4 4 4

We serve : Type Ladies shoes (flat) Ladies shoes with shoelace Size 31 - 40 36 - 40 Price

We receive cash and credit card for payment, only for BCA, Mandiri, BRI, BNI, HSBC, NISP, and StandardChartered Bank. For further information, see our website in www.shoegallery.com or call us in (021)700SHOE (7007463)

FINANCIAL 1. COST

Direct Direct Labor Direct Material

Indirect Rent Expense Electricity Expense Telephone and Water Supplies Expense Accumulated Depreciation

Variable Brush Acrylic Paint Shoes Supplies Electricity Box and Plastic

Fixed Rent Expense Accumulated Depreciation

DIRECT MATERIAL With Boot-lace 40 pairs (@ Rp 45.000,-) `5 bottle 10/3 bottle 40 bottle 40 bottle 10 bottle 295/3 bottle Rp 40.000,Rp 80.000,Rp 120,000,Rp 320.000,Rp 560.000,Rp 120.000,Rp 160,000,Without Boot-lace 40 pairs (@ Rp 30.000,-) 5 bottle 40 bottle 10 bottle 10/3 bottle 10/3 bottle 185/3 bottle Rp 20.000,Rp 40.000,Rp 80.000,Rp 320.000,Rp 460.000,Rp 120.000,Rp 160,000,-

Shoes Acrylic Paint (@ Rp 10.000,-) - Red - Yellow - White - Black - Green Total Brush No. 1 (@ Rp 1.000,-) No. 2 (@Rp 2.000,-) No. 4 (@ Rp 4.000,-) No. 6 (@ Rp 6.000,-) No. 8 (@ Rp 8.000,-) Total Transparent Box (@ Rp 3.000,-) Plastic to carry (@ Rp 4.000,-)

DIRECT LABOR With Boot-lace 15 minutes 30 minutes 10 minutes 5 minutes 60 minutes*40 = 2400 minutes Rp 800.000,Without Boot-lace 15 minutes 30 minutes 10 minutes 2 minutes 57 minutes*40 = 2280 minutes Rp 760.000,-

Sketching Coloring Bolding Line and Embroidering Color Ironing Total (1 labor = 1 hour = Rp 20.000,-

FOH With Boot-lace Labor Hour 2400 minutes Labor Hour 2400 minutes Total Order 1 order Labor Hour 2400 minutes Total Pair of Shoes 40 pairs Total Pair of Shoes 40 pairs Without Boot-lace Labor Hour 2280 minutes Labor Hour 2280 minutes Total Order 1 order Labor Hour 2280 minutes Total Pairs of Shoes 40 pairs Total Pairs of Shoes 40 pairs

Rent Expense Electricity Expense Telephone Water Supplies Expense Accumulated Depreciation

We allocate rent expense according to the number of labor hours because rent factory is used for making shoes that is made by labor and affected by labor hours although rent expense wouldn t increase as labor hours increase (because it is fixed cost). We allocate electricity expense according to the number of labor hours because it increases as number of labor hours increases. We don t have any machine so electricity is used only for fans and lamps; it is needed for labors and will be turned off when they don t produce shoes anymore. We allocate telephone according to number of orders because we use telephone to receive orders and confirm about orders. So it increases as number of orders increases. We allocate water according to the number of labor hours because it increases as number of labor hours increases. Water is only used by labors in their working time. We allocate supplies expense according to total pair of shoes because it increases as number of shoes increases. Supplies expense is only used for making shoes. We allocate depreciation expense according to total pair of shoes. Depreciation expense here is for depreciating shelf to place shoes and total pair of shoes affects directly to depreciation expense.

Rate of FOH Rent Expense Rate Electricity Expense Rate Telephone Water Rp 500.000,-/4680 minutes Rp 200.000,-/4680 minutes Rp 60.000,-/2 orders Rp 40.000,-/4680 minutes 107 43 30000 8.547

Supplies Expense Accumulated Depreciation

Rp 50.000,-/80 pairs Rp 171.854,-/80 pairs

625 2148

Shoes with Boot-lace Direct Material Shoes Acrylic Paint Brush Transparent Box Plastic to carry Total Direct Material Direct Labor FOH Rent Expense Electricity Expense Telephone Water Supplies Expense Accumulated Depreciation Total FOH TOTAL Divided with total pairs of shoes Price per unit

Rp 1.800.000,Rp 983.320,Rp 560.000,Rp 120.000,Rp 160.000,Rp 3.623.320,Rp 800.000,-

Rp 256.800,Rp 103.200,Rp 30.000,Rp 20.513,Rp 25.000,Rp 85.927,Rp 521.440,Rp 4.944.760, 40 pairs Rp 123.619,-

Shoes without Boot-lace Direct Material Shoes Acrylic Paint Brush Transparent Box Plastic to carry Total Direct Material Direct Labor FOH Rent Expense Electricity Expense Telephone Water Supplies Expense

Rp 1.200.000,Rp 616.680,Rp 460.000,Rp 120.000,Rp 160.000,Rp 2.556.680,Rp 760.000,-

Rp 243.960,Rp 98.040,Rp 30.000,Rp 19.487,Rp 25.000,-

Accumulated Depreciation Total FOH TOTAL Divided with total pairs of shoes Price per unit

Rp

85.927,Rp 502.414,Rp 3.819.094, 40 pairs Rp 95.477,-

2. Profit