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This screen gives you the ability to describe how the materials you defined on the raw materials screen (see Raw Materials) are consumed in the delivery of products to customers. It gives you the power to transform the raw material data into costs of goods sold (COGS).
We provide three tabs for you on this COGS screen that organize assumptions into three categories. We recommend that you complete them in this order:
You can toggle between the two versions of this first tab by clicking on the blue buttons labeled 'View Raw Materials by Product' or 'View Products by Raw Materials' at the bottom of the screens (see pictures of screens below)
To add a new raw material to a product, press the blue 'Select' button to the right of the product to which you want to add the raw material.
Here are the assumptions concerning how raw materials you purchase relate to products you sell to customers:
Here are the assumptions concerning waste/spoilage:
In addition, <php>echo $conf['comp_name'];</php> displays the average timing (manufacturing plus inventory) for companies in your industry. You should compare the sum of your two entries with this value.
Here are the assumptions concerning manufacturing and inventory timing:
<html><center>( (1,000 x $100 x 60) + (300 x $50 x 30) ) / ( (1,000 x $100) + (300 x $50) ) = 56</center></html>
What does Offtoa do with production days and inventory days?
What are the various 'units' that Offtoa asks for?
Where do I enter how many units I will sell?
Why does Offtoa need to know the percentage of raw material needed for each product?
How do I model labor expenses associated with delivering those services for a pure services-based company?
How do I add manufacturing overhead costs as COGS?
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