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    5 Production Study READY

    Uploaded by

    armanbonoan99
    The document outlines the technical aspects of a production study including raw materials needed, tools and equipment required, labor costs, factory overhead expenses, other fixed expenditures, depreciation costs, and total production cost.

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    © All Rights Reserved
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    5 Production Study READY

    Uploaded by

    armanbonoan99
    6 views4 pages
    The document outlines the technical aspects of a production study including raw materials needed, tools and equipment required, labor costs, factory overhead expenses, other fixed expenditures, depreciation costs, and total production cost.

    Original Title

    5-Production-Study-READY (1)

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    The document outlines the technical aspects of a production study including raw materials needed, tools and equipment required, labor costs, factory overhead expenses, other fixed expenditures, depreciation costs, and total production cost.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    6 views4 pages

    5 Production Study READY

    Uploaded by

    armanbonoan99
    The document outlines the technical aspects of a production study including raw materials needed, tools and equipment required, labor costs, factory overhead expenses, other fixed expenditures, depreciation costs, and total production cost.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    Date Started: __________________ Score: ___________

    Date finished: __________________

    PRODUCTION STUDY
    TECHNICAL ASPECT

    1. What we want to do

    2. How we do it

    a. Production process. Enumerate the step by step procedure of producing the


    product/service.

    b. Raw Materials/Materials needed

    Items and specifications Quantity Price/unit Total cost


    Fruits and vegetables 60 Kg Php. 15,000
    Pork 70 Kg Php. 15,400
    Beef 55 Kg Php. 17,600
    Poultry 45 Kg Php. 6,750
    Fish 40 Kg Php. 4,000
    Total --------------------------- ------------------ ----------- Php. 58,750

    c. Tools & Equipment

    Items and specifications Quantity Price/unit Total cost


    1. Tools
    Measuring tools 2 Set Php. 5,000
    Knives 1 Set Php. 5,000
    Cake decorating tools 5 Set Php. 10,000
    Kitchen cutleries 5 Set Php. 15,000
    Total -------------- --------------- Php. 35,000
    ---------------------
    2. Equipment
    Stove 5 Php 9,000 Php. 45,000
    17

    Deep-fryer 4 Php 7,500 Php. 30,000


    Page

    Slicers 3 Php 5,000 Php. 15,000


    Coffee Brewer 4 Php 35,00 Php. 140,000
    Microwave 5 Php 6,000 Php. 30,000
    Total -------------- --------------- Php.260,000
    -------------------
    3. Machineries
    Oven 3 Php 35,000 Php.105,000
    Freezer 4 Php 19,000 Php. 76,000
    Refrigerator 5 Php 21,000 Php. 105,000
    Grilling 6 Php 25,000 Php. 150,000
    Total ------------------- -------------- ---------------- Php.436,000

    d. Labor. What wage rates will be paid to employees? What is the basis/justification for
    this wage rate?

    e. What is the factory overhead expenses you will incur?

    Items Value (per month)


    Electricity Php 71,000
    Water Php 35,000
    Maintenance of equipment Php 60,000
    Transport of raw materials Php 25,000
    Insurances Php 49,980
    Total Php. 240, 980

    f. What are other fixed expenditures you will incur?

    Items Value
    Aircon Php. 50,000
    CCTV Php. 42,000
    Security Alarm Systems Php. 20,000
    Kitchen units Php. 150,000
    Flat screen tv Php. 55,000
    Total Php. 317,000

    g. What is the depreciation cost of the fixed expenditures?

    Items (from c.3) Periodic /Annual Depreciation


    Oven Php. 13,125
    Freezer Php. 7,600
    18

    Refrigerator Php. 8,750


    Page

    Grill Php. 9,999.96


    Total Php. 39,474.96
    h. Plan for maintenance and repair

    i. Sources of equipment

    j. Total Production Cost

    Items Value
    1. Raw materials/month Php. 31,300
    2. Tools, Equipment Php. 295,000
    3. Machineries Php. 436,00
    4. Factory overhead expenses per Php. 260,441.67
    month
    5. Direct labor/month Php. 220,220
    6. Other fixed expenses Php. 317,000
    Total Production Cost Php. 1,559,961.67

    References

    http://www.togetherworks.org.uk
    http://www.readyplanning.com/how_to_plan/feasibility_how_to.htm
    Gittinger, P.J. 1982Economic Analysis of Agricultural Projects
    Iñigo, C.E. Management for Filipinos. Quezon City

    19
    Page
    PERIODIC/ANNUAL DEPRECIATION

    OVEN
    QUANTITY: 3

    D= 35,000 - 0 = Php. 4,375 x 3 = 13,125


    8 years

    FREEZER
    QUANTITY: 4

    D= 19,000 - 0 = Php. 1,900 x 4 = 7,600


    10 years

    REFRIGERATOR
    QUANTITY: 5

    D= 21,000 - 0 = Php. 1750 x 5 = 8,750


    12 years

    GRILL
    QUANTITY: 6

    D= 25,000- 0 = Php. 1,666.66.66 x 6 = 9,999.96


    15 years

    20
    Page

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