Analyze materials, labor, overhead, and work-in-progress accurately. See cost per unit, totals, and visual trends. Plan production budgets with confidence across changing operating conditions.
The chart compares major production cost components and the final production cost.
| Example Item | Example Value |
|---|---|
| Opening Raw Material | 5,000.00 |
| Purchases | 40,000.00 |
| Carriage Inward | 1,500.00 |
| Purchase Returns | 1,000.00 |
| Closing Raw Material | 7,000.00 |
| Direct Labor | 22,000.00 |
| Direct Expenses | 3,000.00 |
| Total Factory Overhead | 23,300.00 |
| Opening Work in Progress | 4,500.00 |
| Closing Work in Progress | 3,000.00 |
| Units Produced | 2,600.00 |
| Example Cost of Production | 88,300.00 |
| Example Cost per Unit | 33.96 |
Cost of production is the total manufacturing cost of completed output. It includes direct materials, direct labor, direct expenses, factory overhead, and work in progress adjustments.
No. Prime cost includes direct materials, direct labor, and direct expenses only. Cost of production also includes factory overhead and work in progress adjustments.
Closing work in progress represents unfinished goods remaining at period end. Because those costs are not part of completed production, they are deducted from current production cost.
Opening work in progress carries unfinished costs from the previous period. Those units are completed this period, so their cost is added to production cost.
Cost per unit helps with pricing, budgeting, variance analysis, cost control, and profitability decisions. It is especially useful when production volume changes across periods.
Usually no. This calculator focuses on manufacturing cost only. Administrative and selling expenses are generally used later for cost of sales or profitability analysis.
It is best for manufacturing environments. Service businesses often use job costing, departmental costing, or service cost methods instead of production cost structures.
The calculator will still compute total production cost, but cost per unit becomes zero to avoid division errors. Add produced units for a meaningful unit cost.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.