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Process Costing Report
Process Costing Report
To be the market leader in domestic and exports from the Country by supplying high quality cement at the most competitive rates with customers satisfaction and discharge our social responsibilities for the benefit of under privileged.
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The Mission
To be the largest and fastest growing cement producer using state of the art technology at the most competitive cost by utilizing our experience for maximizing profits for our shareholders.
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Group Information:
Lucky Cement Limited has been sponsored by Yunus Brothers Group (YB Group) which is one of the largest business groups of the Country based in Karachi and has grown up remarkably over the last 50 years. The YB Group is engaged in diversified manufacturing activities including Textile, Spinning, Weaving, Processing, Finishing, Stitching and Power Generation. The Group consists of a number of industrial establishments other then Lucky Cement Limited, they include: 1. 2. 3. 4. 5. Lucky Textile Mills Fazal Textile Mills Limited Gadoon Textile Mills Limited Lucky Energy (Private) Limited Yunus Textile Mills
Fazal Textile Mills Limited - established in 1987 - One of the top spinning mills in the country with 59,508 installed spindles
- Produces 100% Grey Cotton Ring Spun Yarn and wide range of Blended and Heather Yarns? - ISO 9001:2000 certified
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In-charge Treasury
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Department in the Company:The major departments are: Sales and Marketing Department. Finance and Accounting Department. Commercial Department. Administration Department. Departments are divided according to manufacturing process Raw Mill. Clinker Production. Cement Production. Packaging and Distribution.
Other important Department includes Mechanical and Electric Department. Procurement Department.
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Cost Accounting Department:The cost accounting department is consisting eight employees. Mr. Zia is the In-charge of Accounting, Finance and Taxation Department. Every employee is responsible for every activity in the department so it is tough to identify the job responsibilities of every employee individually. However he listed the following activities mentioned to the job description of the cost accounting department employees. To track the project costs, expenses and labor hours using Enterprise Resource Planning system. Prepare cost accounting reports for higher authorities. Work with operation to reconcile inventory, job material and work in process record. Calculated and set overhead rates. Assist marketing in setting product prices and assist sales in quantity custom project by providing cost information.
Cost accounting department is responsible for following task. Assist with budgeting and forecasting process. Prepare detail monthly gross margin analysis reports. Enhance and maintain labor productivity.
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Products
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Lucky Cement aims at producing cement to suit every user. The following types of cement are available: 1. Ordinary Portland Cement 2. Sulphate Resistant Cement 3. Slag Cement
1. ORDINARY PORTLAND CEMENT (OPC) Ordinary Portland cement is available in darker shade as well as in light shades in Lucky Star with different brand names to suit the requirement of users. It is used in all general constructions especially in major prestigious projects where cement is to meet stringent quality requirements; it can be used in concrete mortars and grouts etc. Ordinary Portland cement is compatible/consumable with admixture/ retarders etc. 2. SULPHATE RESISTANT CEMENT (SRC) Sulphate resistant Cements best quality is to provide effective and long lasting strength against sulphate attacks and is very suitable for constructions near sea shores as well as for canals linings. It provides very effective protection against alkali attacks. 3. SLAG CEMENT Slag cement is also available for specific user requirements. Slag cement, has been incorporated into concrete projects for over a century to improve durability and reduce life cycle costs. Among its measurable benefits in concrete are better workability and finish ability, higher compressive and flexural strengths, and improved resistance to aggressive chemicals.
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Lucky Star
Lucky Gold
Chairman Cement
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Financial statements
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Process Costing:-
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Stock Pile:
Piece of rocks are placed in hammer crushers, when they come out, they have been reduced to the size of three centimeter. The crushed lime is organized in a stone where uniform layers are established, this is done to increase the homogenous nature of lime stone pieces.
Raw Mill:
In this stage the main Raw Material is mixed with other raw material namely iron ore, over burden, shale in the given proportions. Iron ore by 2.5 percent per ton Over burden by 61 percent per ton Shale by 4 percent per ton
Clinker Production:
The crude powder is filled in silos from where it is subsequently fed into the clinker furnace. The crude enters an exchange tower where it is subject to a counter flow of gas in order to attain a temperature of 850 degree centigrade. The chemical process is completed inside the furnace following a major cooling process, the product obtained is clinker.
Cement Production:
To clinker, gypsum is added in a proportion of 5 per ton. The material are then placed in the cement mill where they are ground, mixed and homogenized the cement is then stored in silos for subsequent consignment.
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Process
Process Cost per ton (in Rs) 100 40 190 1250 400 325 2305
Direct Material Cost per ton (in Rs) 40 0 135 100 35 35 345
Factory Overhead cost per ton (in Rs) 25 35 40 1100 230 100 1530
Raw Material Querrying Stock Pile Raw Mill Clinker Production Cement Production Packaging and Distribution Cost Per Ton
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Factory Overhead:Following is the list of Factory Overheads production Department. Process Raw Material Querrying Stock Pile Raw Mill Clinker Production Cement Production Packaging and Distribution Factory Overhead (In Rs.) 25 35 40 1100 230 100
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