The table below shows the Cost of Sales of Borahae Works for 5 years.

Note 2: Cost of Sales

Schedule 2022 2023 2024 2025 2026
Direct Materials 4 1,684,200.00 1,818,936.00 1,964,450.88 2,121,606.95 2,291,335.51
Add: Direct Labor 5 886,848.00 931,190.40 977,749.92 1,026,637.42 1,077,969.29
Employee Benefits 6 64,512.00 71,806.80 77,922.14 84,379.36 91,570.71
Factory Overhead 7 18,195.00 7,530.32 18,514.39 9,029.04 22,127.09
Cost of Sales 2,653,755.00 2,829,463.52 3,038,637.33 3,241,652.76 3,483,002.59

 The amount of every materials is based on the average number of customer that Borahae Works will have annually.
 There are 9.5% increase on unit cost of materials annually
 Direct Labor are computed based on the daily salary of each employees multiply by the working days every year.
 Each salary is based on the salary schedule that was on the Technical Aspect
 There are 5% increase on salary yearly.
 Employee Benefits is composed of SSS, Philhealth and Pag-ibig.
 SSS is computed based on contribution of each employee every month multiply by the no. of month every year and there is 13% increase annually.
 Philhealth contribution is also computed based the salary of each employee every month multiply by the no. of month every year and projected a Php25.00 increase
every year.
 Pag-ibig is computed based on the contribution of each employee annually.
 Factory overhead are compose of production materials, cleaning supplies and materials and other supplies that will be used by Borahae works every year.