How to calculate the price of reinforced concrete products

The selling price for reinforced concrete products must be calculated taking into account the costs of production and sale. For each type of product, you need to make a calculation, where all direct and indirect costs will be calculated.

Instruction manual

1

Calculate on the basis of flow charts the amount of materials necessary for the production of each type of product. It is necessary to take into account cement, sand, gravel, metal and other raw materials that will be used up in the process of manufacturing reinforced concrete products.

2

Calculate the cost of materials based on their purchase prices, while taking into account the cost of delivery and storage of raw materials. Calculate the cost of depreciation of fixed assets. They are calculated based on the hours of operation of the equipment and accounting data on the amount of monthly depreciation deductions for this equipment.

3

Count the number of man-hours of work for each technological operation in the production of reinforced concrete products. Calculate the amount of wages. To do this, multiply the total number of man-hours received by the hourly wage rate of the worker.

4

Calculate the amount of accruals on the employee’s wages (single social tax and accident insurance) by multiplying the percentage of accruals by the amount of wages. Add up all direct manufacturing costs.

5

Calculate the production cost (planned accounting price) of reinforced concrete products, multiplying the amount of direct costs by the percentage of general production costs, which must be calculated and approved for this type of production. According to the received production cost, the finished products are recorded at the enterprise.

6

Calculate the total cost of reinforced concrete products, adding to the production cost of general business expenses. The percentage of general business expenses for calculating the prices of finished products must be approved at the enterprise.

7

Add to the full cost the amount of expenses for the sale of products. After calculating and summing up all direct and indirect costs of production, it will be necessary to include the percentage of the company's profit in the price of the product.

8

If the organization is a VAT payer, add the amount of the calculated tax to the figure received. So, the selling price of a reinforced concrete product is calculated. It will also not be amiss to study the market for reinforced concrete products and compare the calculated prices with prices for reinforced concrete from competing firms.