Target and Actual Job Costing Analysis of Garment Sectors

Target and Actual Job Costing Analysis

Target and Actual Job Costing Analysis of Garment Sectors is most important to make decision to known actual profit of organization. The job costing in garments sector or manufacturing company are used tow types of polices. One of them are details calculation as per below. Here i am express “Analysis of Target Profit oriented report” and “Actual Costing Report” to management for make decision to safe liquidity in the preparation process.

Target and Actual Job Costing Analysis of Garment Sectors:
Order Qty:10000Pcs
FOB $                                         5.00Pcs
FOB $                                    50,000
Materials 60%On FOB
FOH26.50%On FOB
SOH3.50%On FOB
Profit10%On FOB
Actual Cost:
Materials Cost $                                    30,000
FOH $                                    13,250
SOH $                                       1,750
Profit $                                       5,000
Standard Cost Sheet
Target Oriented ReportActual Report
Month Jan-18Month Jan-18
Sales2500Pcs $  12,500.00Sales 2500Pcs $    12,500.00
Less:
Materials Cost60.00% $    7,500.00Materials Cost60.00% $       7,500.00
FOH26.50% $    3,312.50FOH26.50% $       3,312.50
SOH3.50% $        437.50SOH3.50% $          437.50
Profit10.00% $    1,250.00Profit10.00% $       1,250.00
Month Feb-18Month Feb-18
Sales3000Pcs $  15,000.00Sales 3000Pcs $    15,000.00
Less:
Materials Cost60.00% $    9,000.00Materials Cost60.00% $       9,000.00
FOH26.50% $    3,975.00FOH26.50% $       3,975.00
SOH3.50% $        525.00SOH3.50% $          525.00
Profit10.00% $    1,500.00Profit10.00% $       1,500.00
Month Mar-18Month Mar-18
Sales4000Pcs $  20,000.00Sales 4000Pcs $    20,000.00
Less:
Materials Cost60.00% $  12,000.00Materials Cost60.00% $ 13,500.00
FOH26.50% $    5,300.00FOH26.50% $       5,962.50
SOH3.50% $        700.00SOH3.50% $          787.50
Profit10.00% $    2,000.00Profit10.00% $        (250.00)
Target Oriented ReportActual Report
FOB $  47,500.00FOB $    47,500.00
Materials60.00% $  28,500.00Materials63.16% $    30,000.00
FOH26.50% $  12,587.50FOH27.89% $    13,250.00
SOH3.50% $    1,662.50SOH3.68% $       1,750.00
Profit10.00% $    4,750.00Profit5.26% $       2,500.00
Actual Vs Target

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