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PRODUCT COSTING TEMPLATE

This template enables users to compile product costings for all the manufactured products produced by a business. The
on the purchase prices entered for all bought-in stock items and the bills of material (“recipes”) compiled for each
template includes a detailed product cost review sheet, what-if cost calculations for cost analysis purposes and quantit
can be used for requirements planning or stock usage measurement. The unique design of this template enables us
costing model for all manufactured products.

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 produced by a business. The product costings are based
recipes”) compiled for each manufactured product. The
analysis purposes and quantity forecast calculations that
n of this template enables users to create an integrated

he formulas!
esign of the template. Get the full version for a fully
access to all areas of the template including all formulas.
n just like any of your own Excel files.

te!
Excel Skills | Product Costing Template
Instructions
www.excel-skills.com

This template enables users to compile product costings for all the manufactured products produced by a business. The
costings are based on the purchase prices of all bought-in stock items and the bills of material (“recipes”) that are compiled
for each manufactured product. The template includes a detailed product cost review sheet, what-if cost calculations and On this sheet:
quantity forecast calculations that can be used for requirements planning or stock usage measurement. The unique design This sheet includes detailed instructions
of this template enables users to create an integrated costing model for all manufactured products. on setting up and using this template.

The following sheets are included in the template:

StockCode - create unique stock codes for all bought-in and manufactured products on this sheet. The product costs and
what-if costs of all stock items are calculated based on the purchase prices of bought-in products that are entered on this
sheet and the bills of material that are linked to the manufactured products on the BOM sheet. The forecast quantities are
calculated
BOM based
- link eachon manufactured
the finished product quantities
product to the that are entered
appropriate on the
stock Forecast sheet.
components on this sheet. All the costings of
manufactured products are calculated based on the components that have been linked to the appropriate product code on
this sheet.
Costing - view a detailed product costing for any product by selecting the appropriate stock code from the list box in cell
A4. A comparison between the product costing and the what-if costing is also included on this sheet. Aside from selecting
the appropriate stock code, this sheet requires no user input.
Forecast - enter the manufactured product finished goods quantities that should be used in order to calculate a
requirements planning forecast. The calculations on this sheet can be used for requirements planning or stock usage
measurement purposes. The bought-in stock quantity forecast that is calculated is included on the StockCode sheet.
Margins - this sheet includes a comprehensive analysis of selling prices, product costs, what-if costs and gross profit
amounts and percentages.

Stock Codes

The first step in customizing the template for your business is to create a unique stock code for each stock component and
finished (manufactured) product on the StockCode sheet. Stock components can only be linked to a manufactured product
if a stock code has been created for the appropriate stock item.

Note: The contents of the StockCode sheet have been included in an Excel table. You can add a new stock code to the
sheet by entering the appropriate stock code in the first empty cell in column A - the table will be extended automatically to
include the new stock code. All the columns with a yellow column heading require user input. The columns with light blue
column headings contain formulas which are automatically copied for all new stock codes added to the Excel table.

A stock code convention that makes sense in the context of your business should be used and it should make it easy to
identify stock items based on the stock code assigned to each stock item. The template can accommodate any stock code
convention but we suggest using a combination of letters and numbers. In our example, we have used a combination of
four numbers and three letters for finished products and a combination of two letters and two numbers for bought-in and
intermediate stock items.

Note: The two letters that are used in the default bought-in and intermediate products assists users in identifying the type
of stock - for example, RM refers to raw materials, LB refers to labour and SD refers to intermediate products. Note that
even though labour is not actually a stock item, we also assign a stock code to labour cost in order to include this type of
direct cost in the product costings. The same principle can be applied in order to include other direct costs like overheads
or even distribution costs in the product costings.

Once you have decided on a stock code convention, you can create a unique stock code for each stock item that should
be included
Stock Codein- the product
enter costings.
a unique stockThe StockCode
code sheet with
in accordance includes the following
the stock columns: that is suitable for your type of
code convention
business.
Description - enter a description of the stock item. This description should enable users to easily distinguish between
stock items.
UOM - the unit of measure (UOM) refers to the stock measurement that is used when ordering, manufacturing and
counting stock. Note that stock components are also included in the product costings based on this unit of measure. For
example, if the recipe of a manufactured product stipulates that a specified quantity in kilogram of a raw material stock
component should be added during manufacturing, it will be easier to cost the product based on a unit of measure of
kilogram even though the raw material component may be ordered from a supplier in bags. For the purpose of this
template, recipe (and therefore costing) units of measure carry more weight than the units of measure that is used by
suppliers.
Purchase Price - the most important aspect of the purchase price is that it should be in the same unit of measure as the
unit of measure that is specified in the UOM column. If a stock component is ordered from a supplier in another unit of
measure, the purchase price should be converted to the unit of measure specified in the UOM column. Purchase prices
should be entered excluding sales tax if the sales tax amounts can be claimed back from the appropriate tax authorities.
What-If Cost - the what-if purchase price should be entered in this column. This column forms part of the what-if costings
which enable users to measure the sensitivity of product costings to component purchase price fluctuations. Refer to the
What-If Costs section of these instructions for more information on the what-if cost analysis feature.

Note: All the columns with yellow column headings require user input. The columns with light blue column headings
contain formulas which are automatically copied when you add a new stock code in the first empty cell in column A.

Error Code - the formulas in this column display an error code if there is a problem with the data that has been entered in
any of the user input columns. This column should therefore be blank if all user input has been entered correctly. If any
error codes are reflected in this column, the errors should be investigated and rectified in order to ensure that all template
calculations remain accurate. Refer to the Error Codes section of these instructions for guidance on how to correct the
appropriate user input errors.

Product Type - this column indicates whether the stock code relates to a stock item that is bought-in from a supplier or to
a product that is manufactured. A product costing should be compiled for all manufactured products by linking the
manufactured product and its components on the BOM sheet. The formula that has been entered in this column therefore
checks whether the stock code is included in column A on the BOM sheet and if so, identifies the product as a
manufactured product. Alternatively, the product is deemed to be a bought-in product.
Product Cost - this column contains the product cost of each stock code. If a product is classified as a bought-in stock
item, the product cost equals the purchase price specified in column D. If the product is classified as a manufactured
product, the product cost is calculated based on the components linked to the product on the BOM sheet and the
appropriate purchase prices, input quantities and yields of the linked components. The Product Cost column therefore
contains the product costs of all stock items.
What-If Cost - this column contains the what-if costs of each stock code. The what-if costs are calculated on the same
basis as the product costs, but the what-if costs in column E are used instead of the purchase prices in column D for all
stock components. The input quantities and yields of all the components that have been linked to the manufactured stock
items on the BOM sheet are exactly the same. Refer to the What-If Costs section of the instructions for more information
on the calculation of what-if costs.
Quantity Forecast - the formulas in this column calculate the stock quantities that are required in order to produce the
finished goods quantities that are entered on the Forecast sheet. Refer to the Quantity Forecast section of these
instructions for guidance on how the forecast quantities are calculated.
Value Forecast - the value forecast is calculated by multiplying the quantity forecast by the stock purchase prices of the
appropriate bought-in stock items in column D.
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Excel Skills | Product Costing Template
Instructions
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What-if Value Forecast - the what-if value forecast is calculated by multiplying the quantity forecast by the what-if stock
purchase prices of the appropriate bought-in stock items in column E.

Note: Purchase prices (in column D) and what-if prices (in column E) should not be entered for manufactured products
because the product costings of these stock items are determined based on the purchase prices and what-if prices of the
components that have been linked to the manufactured products. If you enter a purchase price or what-if price for a
manufactured stock item, the input will have no effect on the costs that are calculated.

Note: We recommend that you review all bought-in stock items on the StockCode sheet in order to ensure that no
manufactured products are classified as bought-in stock items. If a manufactured product is incorrectly classified as a
bought-in product, it means that no components have been linked to the appropriate product on the BOM sheet. Once you
add the appropriate components to the BOM sheet, the stock code will be automatically be classified as a manufactured
product.

Bills of Material

The purpose of the BOM sheet is to create a link between stock components and manufactured products. This is
accomplished by entering the appropriate stock code of the manufactured product in column A and entering the stock code
of the appropriate component in column B. Multiple stock components can be added to a single manufactured product in
order to create a product costing which consists of multiple stock components.

Note: Columns A and B both contain list boxes which include all the stock codes that have been created on the StockCode
sheet. You need to create a stock code for each manufactured or component product before you will be able to select the
appropriate stock code from the list boxes in these columns.

Note: The contents of the BOM sheet have been included in an Excel table. You can add a new stock component to the
sheet by simply selecting the appropriate product code from the list box in the first empty cell in column A - the table will be
extended automatically to include the new product code. All the columns on the BOM sheet with a yellow column heading
require user input. The columns with light blue column headings contain formulas that are automatically copied for all new
stock components that are added to the Excel table.

The following user input is required in the columns with yellow column headings:

Product Stock Code - the stock code of the manufactured product to which the stock component should be added needs
to be selected from the list box in this column. The list box includes all the stock codes created on the StockCode sheet.
The product stock code should be repeated for all the components used in the manufacturing process. For example, if 10
components are required in order to produce a particular product, you need to add 10 different component stock codes in
column B in 10 separate rows and repeat the product stock code in column A in each of these rows. All 10 component
stock codes will then be linked to the same manufactured product and will be included in the same product costing.

Note: Components are listed on the product costing in the same order in which they appear on the BOM sheet. This
means that even though all components do not need to be grouped together on the BOM sheet, the order in which they
are entered or sorted will determine the order in which they appear in the costing. We recommend that you always sort the
data on the BOM sheet by the product code in column A and the component code in column B after making changes to the
BOM sheet. By sorting the data, the components will always be listed on the costings in a consistent order.

Component Stock Code - a component stock code needs to be selected from the list box in column B for each
component that is used in manufacturing the product which has been selected in column A. The product costings that are
produced by this template accommodate a maximum number of 30 components per manufactured product. The cost of a
manufactured product is calculated based on the costs of all the components that have been linked to the product on the
BOM sheet.

Note: A very efficient method of adding components to a manufactured product is by copying the components from a
similar product, selecting the new product code from the list box in column A and editing the input quantities and yields of
all the components. This method will however only be efficient if components have previously been added to a similar
manufactured product on the BOM sheet.

Input Quantity - the input quantity of the stock component that is used in the manufacturing process should be entered in
column C. This quantity should be entered in the same unit of measure that is specified for the particular stock code on the
StockCode sheet (the component UOM is listed in column I).

Note: The unit of measure (UOM) of the manufactured product is listed in column G. If the unit of measure of the
manufactured product is "Units", the input quantity of the component should be sufficient in order to produce 1 unit of the
manufactured product but if the unit of measure of the manufactured product is for example "Dozen", the input quantity that
is entered should be sufficient in order to produce 12 units of the manufactured product.

Note: The yield basis should also be taken into account when determining the appropriate component input quantity. If the
yield that is entered in column D is based on an Input basis, the component quantity that is added at the beginning of the
manufacturing process should be entered in column C. If however the yield is based on an Output basis, the component
quantity that remains at the end of the manufacturing process should be entered in column C. This is because the input
quantity is divided by the yield as part of the component cost calculation.

Note: You may also want to consider entering a calculation in the input quantity column because this approach may make
it easier to determine how the input quantity has been calculated (if a calculation has been necessary). For example: if the
component unit of measure is dozen and only one unit is used in the manufactured product, the component quantity is
calculated by dividing 1 dozen by twelve. You therefore have the option of entering 0.083333 as the input quantity or you
can enter the formula "=1/12" in the input quantity column.

Yield - the component yield should be entered in column D as a percentage. The input quantity that is entered in column C
is divided by the yield in column D in order to determine the component quantity that is required in order to produce the
manufactured product. Yields can be determined on an Input or an Output basis - the difference between the two bases is
best explained by a definition and a few examples.

Definition: The inherent nature of a manufacturing process may result in the component quantity at the end of the
manufacturing process being less than the component quantity introduced at the start of the manufacturing process. The
quantity difference can be described as a yield loss. The Input basis refers to the component quantity introduced at the
start of the manufacturing process, while the Output basis refers to the component quantity which remains after the
manufacturing process has been completed.

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Excel Skills | Product Costing Template
Instructions
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Note: If there is a significant yield loss during the manufacturing process and the incorrect yield basis is used to determine
the yield that is entered in column D, the product costing of the manufactured product may be inaccurate. As we've
mentioned before, the yield basis also affects the input quantity that needs to be entered. It is therefore important to take
the yield basis into account when determining the component input quantity that needs to be entered in column C.

Example: If we use minced meat in the manufacturing of a beef burger, we have to decide on a yield basis before we can
determine the appropriate input quantity that should be specified. If our aim is to produce a 400g burger at the end of the
manufacturing process, the quantity is based on the output after manufacturing. We may know that on average 500g of
minced meat is required in order to produce a 400g burger at the end of the manufacturing process - the 500g is therefore
the Input based quantity. The manufacturing yield can therefore be calculated as 400g divided by 500g which is 80%. If we
include a yield of 80% in the product costing, we need to include the output weight (400g) as the input quantity in the
costing. The meat component cost is therefore calculated by dividing the 400g by 80% thereby effectively including 500g of
meat in our beef burger product costing. If we use the Input basis in our product costing, an input quantity of 500g and
yield of 100% should be entered (assuming that there is no meat yield loss prior to the start of the manufacturing process).

Example: Our example beef burger includes one slice of onions. With this component, we are not really concerned about
the output weight because we have already decided that only one slice of onions will be included on our beef burger. The
unit of measure of the onions component is kilogram and we therefore need to calculate the input quantity of this
component based on how many slices are included in a kilogram of onions. The quantity that represents one slice then
needs to be entered in the Input Quantity column. In principle, we are calculating the input quantity based on the Input
yield basis and the yield therefore needs to be entered as 100%. We do however know that after the slicing process is
completed, 5% of the onions that we purchased do not end up as sliced onions and is therefore lost before the start of the
manufacturing process. We also need to take this yield loss into account in order to compile an accurate beef burger
product costing. A yield of 95% is therefore entered even though we used the Input basis in determining the appropriate
component input quantity.

The BOM sheet also includes 22 columns with light blue column headings. These columns contain formulas that are
automatically copied for all the new components that are added to the Excel table on the BOM sheet. The purpose of each
of these columns is as follows:

Error Code - the formulas in this column display an error code if there is a problem with the data that has been entered in
any of the user input columns. This column should therefore be blank if all user input has been entered correctly. If any
error codes are reflected in this column, the errors should be investigated and rectified in order to ensure that all template
calculations remain accurate. Refer to the Error Codes section of these instructions for guidance on how to correct the
appropriate user input errors.
Product Description , Product UOM - these columns are included on the BOM sheet to enable users to view the
description of the product codes that are selected in column A and to ensure that the correct unit of measure is used when
entering component
Component input quantities.
Description , Component UOM - these columns are included to enable users to view the description of the
component codes selected in column B and to ensure that the correct unit of measure is used when entering component
quantities.
Component Type - this column reflects the type of component that has been selected in column B. If the component type
is "Bought-in", it means that the component is purchased from a supplier. If the component type is "Manufactured", it
means that the component is an intermediate product which needs to be manufactured.
Bought-In Price - if the component is a bought-in stock item, the purchase price of the component that is entered on the
StockCode sheet will be included in this column. If the component is a manufactured stock item, the bought-in price will be
nil and the component cost will be based on the calculations in the intermediate columns.
Bought-In Cost - the bought-in cost of components is calculated by multiplying the bought-in price of the component by
the input quantity in column C and dividing the result by the yield in column D.
Intermed Comp Cost - if the component that is selected in column B is a manufactured product, the component cost in
this column is determined based on the product cost of the intermediate product which is calculated in column O. Note that
the component cost is calculated as the sum of all the product costs of components that are linked to the intermediate
product on the BOM sheet. If the component is a bought-in product, the intermediate component cost of the product will be
nil.
Intermed Prod Cost - the intermediate product costs of components are calculated by multiplying the intermediate
component cost of the component by the input quantity in column C and dividing the result by the yield in column D.
Product Cost - if the component is a bought-in product, the component product cost will be equal to the component
bought-in cost. If the component is an intermediate product, the component cost will be equal to the intermediate product
cost. Note that the product cost of the manufactured product that has been selected in column A will be equal to the sum
of all the component product costs that are calculated for the particular product in this column.
Bought-In WI Price - if the component is a bought-in stock item, the what-if price of the component that is entered on the
StockCode sheet will be included in this column. If the component is a manufactured stock item, the bought-in what-if price
will be nil and the component what-if cost will be based on the calculations in the intermediate columns.
Bought-In WI Cost - the bought-in what-if cost of components is calculated by multiplying the bought-in what-if price of the
component by the input quantity in column C and dividing the result by the yield in column D.
WI I/M Comp Cost - if the component selected in column B is a manufactured product, the what-if intermediate component
cost in this column is determined based on the what-if cost of the intermediate product which is calculated in column T.
Note that the what-if component cost is calculated as the sum of all the what-if costs of components that are linked to the
intermediate product on the BOM sheet. If the component is a bought-in product, the what-if intermediate component cost
of
WIthe
I/Mproduct
Prod will be -nil.
Cost the what-if intermediate product costs of components are calculated by multiplying the what-if
intermediate component cost of the component by the input quantity in column C and dividing the result by the yield in
column D.
What-If Cost - if the component is a bought-in product, the component what-if cost will be equal to the component bought-
in what-if cost. If the component is an intermediate product, the component cost will be equal to the intermediate what-if
cost. Note that the what-if cost of the manufactured product that has been selected in column A will equal the sum of all
the component what-if costs that are calculated for the particular product in this column.
Level1 Forecast - the stock quantities of all bought-in and intermediate products that are required in order to produce the
forecasted finished product quantities that have been entered on the Forecast sheet are calculated in this column. Note
that only the components that are directly included in the finished product bills of material will reflect quantities in this
column.
Level2 Forecast - the stock quantities of all bought-in and intermediate products required in order to produce the Level1
Forecast quantities that have been calculated in the previous column will be included in this column. Note that only the
intermediate product quantities that are included in the previous column will have an effect on the calculations in this
column because bought-in items contain no components.
Level2 Forecast - the stock quantities of all bought-in and intermediate products required in order to produce the Level1
Forecast quantities that have been calculated in the previous column will be included in this column. Note that only the
intermediate product quantities that are included in the previous column will have an effect on the calculations in this
column because bought-in items contain no components.
Level3 Forecast - the stock quantities of all bought-in and intermediate products required in order to produce the Level2
Forecast quantities that have been calculated in the previous column will be included in this column. Note that only the
intermediate product quantities that are included in the previous column will have an effect on the calculations in this
column because bought-in items contain no components.

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Level4 Forecast - the stock quantities of all bought-in and intermediate products required in order to produce the Level3
Forecast quantities that have been calculated in the previous column will be included in this column. Note that only the
intermediate product quantities that are included in the previous column will have an effect on the calculations in this
column because bought-in items contain no components.
Level5 Forecast - the stock quantities of all bought-in and intermediate products required in order to produce the Level4
Forecast quantities that have been calculated in the previous column will be included in this column. Note that only the
intermediate product quantities that are included in the previous column will have an effect on the calculations in this
column because bought-in items contain no components.
Level6 Forecast - the stock quantities of all bought-in and intermediate products required in order to produce the Level5
Forecast quantities that have been calculated in the previous column will be included in this column. Note that only the
intermediate product quantities that are included in the previous column will have an effect on the calculations in this
column because bought-in items contain no components.

Labour & Direct Overheads

For the purpose of compiling product costings, stock codes also need to be created for all labour, direct overheads and
even distribution costs which need to be included in the product costings. These stock codes can also be seen as cost
centre codes instead of stock codes which are represented by physical stock on hand.

The appropriate labour pay rates or overhead allocation rates should be entered in the Purchase Price column on the
StockCode sheet and the appropriate production times should be entered in the Input Quantity column on the BOM sheet.
A 100% yield should be entered for all labour and overhead costs.

Example: A beef burger is manufactured in a kitchen that consists of 3 staff members. The labour rate is $10.00 per hour
and a total of 400 beef burgers are produced during a shift of 8 hours. In order to add the labour component to the beef
burger product costing, we need to create a stock code for labour on the StockCode sheet (in our example data, all labour
related stock codes start with an "LB"), enter a UOM of hours for the stock code, enter the $10 per hour as the purchase
price of the stock code, add the labour component code to the beef burger bill of material on the BOM sheet, calculate the
production time (3 staff members multiplied by 8 hours in a shift and divided by the 400 beef burgers that are produced),
enter the production time as the input quantity of the labour component on the BOM sheet and enter a yield of 100% on
the BOM sheet.

You can create multiple labour stock codes on the StockCode sheet if there are different labour rates for different staff
members. All the applicable labour stock codes then need to be added separately on the BOM sheet. Additional stock
codes do not need to be created if only the production time (input quantity) differs between products because different
production times can be accommodated by entering different input quantities for each product on the BOM sheet. It is only
when the labour pay rates differ that separate stock codes are required.

Example: Direct overheads or distribution costs can also be added to the costings by creating a stock code for each type of
overhead. We suggest that you compile a monthly forecast of all the appropriate costs, determine the average number of
units that are produced on a monthly basis, calculate the overhead rate by dividing the forecasted monthly amount by the
number of units, create a stock code for the appropriate type of direct overhead cost on the StockCode sheet, enter a
UOM of "Units", enter the overhead rate as the purchase price, add the overhead stock code as a component on the BOM
sheet for all the applicable products and enter an input quantity of 1 and a yield of 100% on the BOM sheet.

Cost Review
The Costing sheet can be used to review individual product costings. All the calculations on this sheet are automated and
the only user input that is required is selecting the appropriate stock code of the manufactured stock item from the list box
in cell A4.

The Costing sheet is compiled from the data that is entered on the StockCode and BOM sheets. The component product
costs and what-if costs are calculated in column O and T on the BOM sheet based on the purchase prices and what-if
prices that are entered in column D and E on the StockCode sheet. The components that are included in the product
costing are based on the components that have been linked to the manufactured product on the BOM sheet and the
component input quantities and yields are also entered on the BOM sheet.

The Costing sheet also includes calculations of the total product cost of the manufactured product (cell H4), the total what-
if cost of the manufactured product (cell J4), the cost variance between the total product cost and the total what-if cost (cell
K4), the product cost of each component (column H), the what-if cost of each component (column J), the component cost
percentage in relation to the total product cost of the manufactured product (column I) and the difference between the
product costs and what-if costs of each component (column K). Refer to the What-If Costs section for more guidance on
the what-if cost calculations.

Note: The Costing sheet can accommodate a maximum number of 30 components per manufactured product. If you
therefore link more than 30 components to a manufactured product on the BOM sheet, all the components will not be
included on the product costing and the product costing will therefore not be accurate.

Note: The total product cost in cell H4 on the Costing sheet is the same as the product cost of the manufactured stock item
that is included in column H on the StockCode sheet. The Costing sheet can therefore be used to view a detailed
breakdown of all the cost components that are included in the product cost of any manufactured stock item.

Note: Bought-in stock items are purchased from suppliers and should therefore not contain any components. All stock
items not linked to components on the BOM sheet are classified as bought-in stock items. If you select a bought-in stock
item from the list box in cell A4, no stock components or costs are therefore listed on the Costing sheet and the stock type
in cell C4 is highlighted in orange. If the stock code that you selected is supposed to be a manufactured stock item, the fact
that it is classified as a bought-in stock item means that no components have been linked to the stock item on the BOM
sheet.

Note: If you duplicate a stock component which is already linked to a particular manufactured product on the BOM sheet,
the component will be also be duplicated on the product costing and result in an inaccurate product cost calculation. We
have implemented conditional formatting on the Costing sheet to highlight all duplicated components in orange in column I.
If an orange cell background is displayed in any cell in column I, the appropriate component needs to be deleted from the
BOM sheet in order to correct the duplication. We recommend sorting the BOM sheet by the product stock code in column
A and the component stock code in column B in order to make it easier to find the duplicate entries.

What-If Costs
The what-if cost features have been added to the template to enable users to measure the effect that component price
fluctuations have on the product costings of manufactured stock items. The component purchase prices that need to be
analysed should be entered in column E on the StockCode sheet. All other what-if cost calculations are updated
automatically.
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Excel Skills | Product Costing Template
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Note: What-if costs should only be entered for bought-in stock items (items that are purchased from suppliers). If you enter
a what-if cost for a manufactured stock item, the cost will have no effect on the template calculations.

The what-if costs are calculated and included in the what-if costings based on the what-if purchase price that is specified in
column E on the StockCode sheet and the component input quantities and yields that are specified on the BOM sheet (the
same input quantities and yields that are used in the product costings). The what-if component costs are calculated in
column T on the BOM sheet, included in column J on the Costing sheet and the total what-if cost of the manufactured
product that is selected from the list box in cell A4 on the Costing sheet is calculated in cell J4. The component what-if
costs and the total what-if cost of the manufactured stock item are also compared to the appropriate product costs on the
Costing sheet.

The what-if cost features can be used to analyse the effect that component price fluctuations have on product costings. We
recommend that you start this cost comparison exercise by copying the purchase prices of all bought-in stock items from
column D on the StockCode sheet to column E on the StockCode sheet. The prices in column E (the what-if cost column)
can then be amended to the what-if purchase prices that you want to analyse. The same procedure should be followed
regardless of whether you want to analyse the effect of a price fluctuation in a single stock component or all stock
components.
All the what-if cost calculations in the template are automatically updated and you can view a comparison of all
manufactured stock items on the StockCode sheet or view a comparison between the what-if cost and the product cost of
a single manufactured stock item by simply selecting the appropriate stock item from the list box in cell A4 on the Costing
sheet.

Note: What-if costs have also been included in the margin analysis on the Margins sheet. Refer to the Margins section of
these instructions for guidance on how the profit margins are calculated on this sheet.

Note: If you want to analyse the effect that changes in component input quantities and yields have on the product costings,
you will have to save this template under a different file name, edit the component input quantities and yields on the BOM
sheet of the new workbook and compare the product costs of the manufactured stock items on the StockCode sheets of
both workbooks. We also recommend adding a calculation on one of the StockCode sheets that looks up the values in the
other workbook based on the stock codes in column A - this will enable you to compare the product costings in the two
workbooks.

Quantity Forecast

The Quantity Forecast features that have been added to the template enable users to enter forecast quantities for all the
appropriate manufactured stock items on the Forecast sheet in order to calculate the stock component quantities that are
required in order to produce the specified quantities of manufactured products. These calculations are extremely useful for
requirements planning or stock usage measurement purposes.

Note: Requirements planning refers to the process of calculating the quantities of manufactured stock items that need to
be produced (usually based on sales forecasts) and then calculating the component quantities that will be required in order
to produce the manufactured products. Orders are then placed with the component stock suppliers based on the quantity
requirements that have been calculated.

Note: Component stock usage can be measured in much the same way. Instead of entering the quantities of manufactured
stock items that need to be produced, users enter the quantities of manufactured stock items that have actually been
produced. The component quantities that should have been used in order to produce the specified manufactured stock
item quantities are then automatically calculated (based on the product costings) and these quantities can then be
compared to the actual component stock quantities that have been used in order to measure production efficiency and the
accuracy of the input quantities and yields that have been included in the product costings.
Quantity forecasts can be compiled by simply specifying the stock codes of the manufactured stock items in column A on
the Forecast sheet and entering the quantities of each manufactured stock item on which the forecast should be based in
column E.

Note: The contents of the Forecast sheet have been included in an Excel table. You can add a new stock code to the
sheet by simply entering the appropriate stock code in the first empty cell in column A - the table will be extended
automatically to include the new stock code. The columns with light blue column headings (columns B, C and D) contain
formulas that are automatically copied for all new stock codes that are added to the Excel table.

Note: We also recommend entering the forecast date in cell G2 before printing the sheet in order to keep a record of the
manufactured product quantities that have been used in all quantity forecasts because once you replace the quantities on
this sheet with new forecast quantities, there will be no record of the forecast quantities on which the previous forecast has
been based.

Note: Before using the Forecast feature, you should ensure that all your product costings are accurate. If you base the
forecast on inaccurate product costings it may result in the incorrect component quantities being ordered from suppliers or
an inaccurate analysis of production inefficiencies.
The quantity forecast is calculated by applying the finished goods stock item quantities specified on the Forecast sheet to
the appropriate components that are entered on the BOM sheet for the particular manufactured stock items. This
calculation is based on the appropriate component input quantity, yield and unit of measure and is included in columns U
to Z on the BOM sheet.

The Level1 Forecast quantities are determined based on the components that are directly included in the finished goods
bills of material. The Level2 Forecast quantities are based on the Level1 Forecast calculations, the Level3 Forecast
quantities are based on the Level2 Forecast quantities and so forth.

Note: The Forecast calculations that have been included in this template therefore incorporate 7 levels of bills of material.
If you need to include more than 7 levels of bills of material, contact us to request a customized version of this template
and specify the number of levels that you need to include in your product costings. Note that the product costing
calculations incorporate an unlimited number of bill of material levels - the limit of 7 levels only applies to the Forecast
calculations.

The forecast quantities that are calculated on the BOM sheet are not really that important (only included on the BOM sheet
for calculation purposes). The quantities that are included in column J on the StockCode sheet are a lot more important
because they represent the total component quantities that are required in order to produce the finished goods stock
quantities that are entered on the Forecast sheet.

Page 7 of 16
Excel Skills | Product Costing Template
Instructions
www.excel-skills.com

Note: The forecast quantities on the Stock Code sheet include both the bought-in and intermediate quantity forecasts even
though the intermediate products are not ordered from suppliers but manufactured in house. We have included the
quantities for both of these component types because it may be useful to be able to determine the quantities of
intermediate components that need to be produced to manufacture the quantities of finished good products (as per the
Forecast sheet).

Note: We highly recommend using the Quantity Forecast features to measure actual stock component usage against the
calculated component quantities because this process will highlight discrepancies between the component quantities that
are included in product costings and the component quantities that are actually being used during the production of
manufactured products. Product costings should also be reviewed regularly based on the results of the usage
measurement exercise. Remember that the Quantity Forecast calculations in this template can only be as accurate as the
component input quantities and yields that are included in the product costings.

Margins

The Margins sheet enables users to calculate the gross profit margins of all manufactured stock items based on the
product costings and what-if costings. The only user input that is required is selecting, entering or copying the appropriate
stock code of the finished goods stock item into column A and entering the appropriate selling price in column E.

Note: The contents of the Margins sheet have been included in an Excel table. You can add a new stock code to the sheet
by simply selecting the appropriate stock code from the list box in the first empty cell in column A - the table will be
extended automatically to include the new stock code. The columns with light blue column headings contain formulas that
are automatically copied for all new stock codes that are added to the Excel table.

Note: The selling prices that have been entered in column E should be exclusive of sales tax if the business is registered
for sales tax purposes.

The product cost in column F and the what-if cost in column I are the same as the product cost and what-if cost for the
particular manufactured stock item as calculated on the StockCode sheet. The gross profit amounts in column G and J are
calculated by deducting the product cost or what-if cost from the appropriate selling price in column E. The gross profit
percentages in columns H and K are calculated by dividing the gross profit amounts in column G and J by the appropriate
selling price in column E.

The what-if selling prices in column L are calculated by applying the gross profit percentages in column H to the what-if
costs in column I and therefore calculate what the selling price should be in order to sustain the same level of profitability if
the price fluctuations that are included in the what-if costs come into effect. The selling price increases in column M
indicate the percentage variance between the what-if selling prices in column L and the selling prices that are entered in
column E.

Error Codes
The following error codes may result from inaccurate user input on the StockCode, BOM, Forecast and Margins sheets
and will be displayed in the Error Code columns. The heading of the affected input column will also be highlighted in
orange:

■ E1 - this error code means that a duplicated stock code has been entered in the appropriate row. The error can be
corrected by simply deleting one of the duplicated entries.

■ E2 - this error code means that the purchase price input in column D on the Stock Code sheet is incorrect. A purchase
price should be entered for all bought-in stock items but is not required for manufactured products. When adding new
manufactured stock items to the StockCode sheet, this error code will be displayed until the appropriate components have
been added to the BOM sheet. The error can be corrected by adding a purchase price for a bought-in stock item, adding
components to a manufactured stock item or deleting a purchase price specified for a manufactured product.

■ E3 - this error code means that the what-if price input in column E on the Stock Code sheet is incorrect. A what-if price
should be entered for all bought-in stock items but is not required for manufactured products. When adding new
manufactured stock items to the StockCode sheet, this error code will be displayed until the appropriate components have
been added to the BOM sheet. The error can be therefore be corrected by adding a what-if price for a bought-in stock item,
adding components to a manufactured stock item or deleting a what-if price specified for a manufactured product.

■ E4 - this error code means that the product stock code that has been specified is invalid. Stock codes must be created
on the StockCode sheet before being used on any of the other sheets and the error can therefore be corrected by simply
creating the appropriate stock code on the StockCode sheet. If a stock code has been deleted, this error code will be
displayed in all the rows on the other sheets that still refer to the stock code. These entries must be deleted or a valid stock
code needs to be selected in column A.
■ E5 - this error code means that the component stock code specified is invalid. Stock codes must be created on the
StockCode sheet before being used on any of the other sheets and the error can therefore be corrected by creating the
stock code on the StockCode sheet. If a stock code has been deleted, this error code will be displayed in all the rows on
the BOM sheet that still refer to the stock code. These entries must be deleted or a valid stock code needs to be selected
in column B.
■ E6 - this error code means that a component has been duplicated in the same product costing. Components should only
be included once in any particular product costing and duplications of component codes may result in inaccurate product
costings. This error can be corrected by sorting the data on the BOM sheet in an ascending order based on the product
code in column A and then by the component code in column B before deleting any duplicated entries that may exist.

Note: Input errors may result in inaccurate template calculations and it is therefore imperative that all errors are resolved
before reviewing the product costings, quantity forecasts or profit margins.

Help & Customization

If you experience any difficulty while using this template and you are not able to find the appropriate guidance in these
instructions, please e-mail us at support@excel-skills.com for assistance. This template has been designed with flexibility
in mind to ensure that it can be used in most business environments. If however you need an Excel based template that is
customized specifically for your business requirements, please e-mail our Support function and provide a brief explanation
of your requirements.

© Copyright

This template remains the intellectual property of www.excel-skills.com and is protected by international copyright laws.
Any publication or distribution of this template outside the scope of the permitted use of the template is expressly
prohibited. In terms of the permitted use of this template, only the distribution of the template to persons within the same
organisation as the registered user or persons outside the organisation who can reasonably be expected to require access
to the template as a direct result of the use of the template by the registered user is allowed. Subsequent distribution of the
template by parties outside of the organisation is however expressly prohibited and represents an infringement of
international copyright laws.

Page 8 of 16
Stock Codes
Set-up
© www.excel-skills.com 627,187.38 717,075.88
Purchase What-if Error Product What-If Quantity Value What-if Value
Stock Code Description UOM Product Type
Price Price Code Cost Cost Forecast Forecast Forecast
1212GHG Garden Shed Units - Manufactured 4,130.88 4,725.37 - - -
1212PHP Painted Garden Shed Units - Manufactured 4,968.16 5,681.10 - - -
1212THT Tools Shed Units - Manufactured 3,621.31 4,138.33 - - -
RM10 Steel Plates M2 140.00 160.00 - Bought-In 140.00 160.00 1,722.22 241,111.11 275,555.56
RM25 Door Handle Units 150.00 170.00 - Bought-In 150.00 170.00 155.00 23,250.00 26,350.00
RM30 Wood M2 120.00 135.00 - Bought-In 120.00 135.00 2,177.78 261,333.33 294,000.00
RM50 1 Inch Screws Bag 30.00 36.00 - Bought-In 30.00 36.00 17.22 516.67 620.00
RM55 2 Inch Screws Bag 50.00 62.00 - Bought-In 50.00 62.00 536.93 26,846.41 33,289.54
On this sheet:
RM60 Glass M2 80.00 90.00 - Bought-In 80.00 90.00 188.24 15,058.82 16,941.18
Create unique stock codes for all bought-in and manufactured stock items and enter the stock description, unit of measure,
RM70 Filler Bag 60.00 70.00 - Bought-In 60.00 70.00 88.89 5,333.33 6,222.22
purchase price and what-if price for each stock item. The columns with light blue headings contain formulas which are
RM75 Swivel Units 3.50 4.00 - Bought-In 3.50 4.00 310.00 1,085.00 1,240.00
automatically copied for all new stock codes added to the table. These columns include calculations of the product cost and what-
RM80 ifPaint
cost- ofWhite
all manufactured stockDrum 220.00based 250.00
items (calculated on the stock- components
Bought-In 220.00 sheet)
added to the "BOM" 250.00 63.16
and the quantity 13,894.74 15,789.47
RM85 Paint - Green Drum 250.00 280.00 - Bought-In
forecast calculated based on the manufactured stock item quantities entered on the "Forecast" sheet.250.00 280.00 35.29 8,823.53 9,882.35
SD18 Door Units - Manufactured 313.67 357.00 155.00 - -
SD20 Window Units - Manufactured 29.53 33.97 640.00 - -
SD25 Roof Units - Manufactured 1,766.67 2,024.44 155.00 - -
SD30 Window Frame Units - Manufactured 321.45 368.52 100.00 - -
SD35 Glazed Window Units - Manufactured 39.53 46.47 240.00 - -
SD40 Glazed Window Frame Units - Manufactured 361.45 418.52 60.00 - -
LB10 Labour - Grade 1 Hours 20.00 25.00 - Bought-In 20.00 25.00 1,264.22 25,284.44 31,605.56
LB15 Labour - Grade 2 Hours 30.00 36.00 - Bought-In 30.00 36.00 155.00 4,650.00 5,580.00

Page 9 of 16
Bills of Material
Costing Components Set-up
© www.excel-skills.com
Product Stock Component Input Error Product Component Bought-In Bought-In Intermed
Yield Product Description Component Description Component Type
Code Stock Code Quantity Code UOM UOM Price Cost Comp Cost
SD18 RM30 1.000 90.0% - Door Units Wood M2 Bought-In 120.00 133.33 -
SD18 RM25 1.000 100.0% - Door Units Door Handle Units Bought-In 150.00 150.00 -
SD18 RM50 0.100 90.0% - Door Units 1 Inch Screws Bag Bought-In 30.00 3.33 -
SD18 RM75 2.000 100.0% - Door Units Swivel Units Bought-In 3.50 7.00 -
SD18 LB10 1.000 100.0% - Door Units Labour - Grade 1 Hours Bought-In 20.00 20.00 -
SD20 RM60 0.250 85.0% - Window Units Glass M2 Bought-In 80.00 23.53 -
SD20 LB10 0.300 100.0% - Window Units Labour - Grade 1 Hours Bought-In 20.00 6.00 -
SD25 RM10 10.000 90.0% - Roof Units Steel Plates M2 Bought-In 140.00 1,555.56 -
On this sheet:
SD25 RM30 1.000 90.0% - Roof Units Wood M2 Bought-In 120.00 133.33 -
Compile a bill of material ("recipe") for all manufactured products. Start by selecting the appropriate product stock code in
SD25 RM55 1.000 90.0% - Roof Units 2 Inch Screws Bag Bought-In 50.00 55.56 -
column A and then select the appropriate component stock codes in column B before entering the input quantity and yield of each
SD25 LB10 1.000 90.0% - Roof Units Labour - Grade 1 Hours Bought-In 20.00 22.22 -
component. The columns with light blue column headings contain formulas which are automatically copied for all new components
SD30 SD20 4.000 100.0% - Window Frame Units Window Units Manufactured
added to the table. The bill of material created on this sheet links the manufactured product (stock codes in- column A) -and the 29.53
SD30 RM70 0.500 90.0% -components
Windowused
Frameto manufacture Units Filler Bag Bought-In
the product (stock codes in column B). All components linked to a manufactured60.00 33.33on this
product -
SD30 RM30 1.000 80.0% -sheet Window Frame Units Wood M2 Bought-In 120.00
are included in the product cost calculation of the manufactured product. Note that you can also add direct labour and 150.00 -
SD30 LB10 1.000 100.0% - Window
overhead Frame
costs Units
to a bill of material Labour
by simply - Grade a1 unique stock code
creating Hours Bought-In
for these costs. 20.00 20.00 -
SD35 SD20 1.000 100.0% - Glazed Window Units Window Units Manufactured - - 29.53
SD35 LB10 0.500 100.0% - Glazed Window Units Labour - Grade 1 Hours Bought-In 20.00 10.00 -
SD40 SD35 4.000 100.0% - Glazed Window Frame Units Glazed Window Units Manufactured - - 39.53
SD40 RM70 0.500 90.0% - Glazed Window Frame Units Filler Bag Bought-In 60.00 33.33 -
SD40 RM30 1.000 80.0% - Glazed Window Frame Units Wood M2 Bought-In 120.00 150.00 -
SD40 LB10 1.000 100.0% - Glazed Window Frame Units Labour - Grade 1 Hours Bought-In 20.00 20.00 -
1212GHG SD25 1.000 100.0% - Garden Shed Units Roof Units Manufactured - - 1,766.67
1212GHG SD30 2.000 100.0% - Garden Shed Units Window Frame Units Manufactured - - 321.45
1212GHG SD18 1.000 100.0% - Garden Shed Units Door Units Manufactured - - 313.67
1212GHG RM30 9.000 90.0% - Garden Shed Units Wood M2 Bought-In 120.00 1,200.00 -
1212GHG RM55 2.000 85.0% - Garden Shed Units 2 Inch Screws Bag Bought-In 50.00 117.65 -
1212GHG LB10 3.000 100.0% - Garden Shed Units Labour - Grade 1 Hours Bought-In 20.00 60.00 -
1212GHG LB15 1.000 100.0% - Garden Shed Units Labour - Grade 2 Hours Bought-In 30.00 30.00 -
1212PHP SD25 1.000 100.0% - Painted Garden Shed Units Roof Units Manufactured - - 1,766.67
1212PHP SD40 2.000 100.0% - Painted Garden Shed Units Glazed Window Frame Units Manufactured - - 361.45
1212PHP SD18 1.000 100.0% - Painted Garden Shed Units Door Units Manufactured - - 313.67
1212PHP RM30 9.000 90.0% - Painted Garden Shed Units Wood M2 Bought-In 120.00 1,200.00 -
1212PHP RM55 2.000 85.0% - Painted Garden Shed Units 2 Inch Screws Bag Bought-In 50.00 117.65 -

Page 10 of 16
Bills of Material
Costing Components Set-up
© www.excel-skills.com
Product Stock Component Input Error Product Component Bought-In Bought-In Intermed
Yield Product Description Component Description Component Type
Code Stock Code Quantity Code UOM UOM Price Cost Comp Cost
1212PHP RM80 2.000 95.0% - Painted Garden Shed Units Paint - White Drum Bought-In 220.00 463.16 -
1212PHP RM85 1.000 85.0% - Painted Garden Shed Units Paint - Green Drum Bought-In 250.00 294.12 -
1212PHP LB10 3.000 100.0% - Painted Garden Shed Units Labour - Grade 1 Hours Bought-In 20.00 60.00 -
1212PHP LB15 1.000 100.0% - Painted Garden Shed Units Labour - Grade 2 Hours Bought-In 30.00 30.00 -
1212THT SD25 1.000 100.0% - Tools Shed Units Roof Units Manufactured - - 1,766.67
1212THT SD18 1.000 100.0% - Tools Shed Units Door Units Manufactured - - 313.67
1212THT RM30 10.000 90.0% - Tools Shed Units Wood M2 Bought-In 120.00 1,333.33 -
1212THT RM55 2.000 85.0% - Tools Shed Units 2 Inch Screws Bag Bought-In 50.00 117.65 -
1212THT LB10 3.000 100.0% - Tools Shed Units Labour - Grade 1 Hours Bought-In 20.00 60.00 -
1212THT LB15 1.000 100.0% - Tools Shed Units Labour - Grade 2 Hours Bought-In 30.00 30.00 -

Page 11 of 16
Bills of Material
Costing Components Set-up
© www.excel-skills.com
Product Stock Component Intermed Bought-In Bought-In WI I/M WI I/M Prod What-If Level1 Level2 Level3 Level4 Level5 Level6
Product Cost
Code Stock Code Prod Cost WI Price WI Cost Comp Cost Cost Cost Forecast Forecast Forecast Forecast Forecast Forecast
SD18 RM30 - 133.33 135.00 150.00 - - 150.00 - 172.22 - - - -
SD18 RM25 - 150.00 170.00 170.00 - - 170.00 - 155.00 - - - -
SD18 RM50 - 3.33 36.00 4.00 - - 4.00 - 17.22 - - - -
SD18 RM75 - 7.00 4.00 8.00 - - 8.00 - 310.00 - - - -
SD18 LB10 - 20.00 25.00 25.00 - - 25.00 - 155.00 - - - -
SD20 RM60 - 23.53 90.00 26.47 - - 26.47 - - 117.65 70.59 - -
SD20 LB10 - 6.00 25.00 7.50 - - 7.50 - - 120.00 72.00 - -
SD25 RM10 - 1,555.56 160.00 1,777.78 - - 1,777.78 - 1,722.22 - - - -
SD25 RM30 - 133.33 135.00 150.00 - - 150.00 - 172.22 - - - -
SD25 RM55 - 55.56 62.00 68.89 - - 68.89 - 172.22 - - - -
SD25 LB10 - 22.22 25.00 27.78 - - 27.78 - 172.22 - - - -
SD30 SD20 118.12 118.12 - - 33.97 135.88 135.88 - 400.00 - - - -
SD30 RM70 - 33.33 70.00 38.89 - - 38.89 - 55.56 - - - -
SD30 RM30 - 150.00 135.00 168.75 - - 168.75 - 125.00 - - - -
SD30 LB10 - 20.00 25.00 25.00 - - 25.00 - 100.00 - - - -
SD35 SD20 29.53 29.53 - - 33.97 33.97 33.97 - - 240.00 - - -
SD35 LB10 - 10.00 25.00 12.50 - - 12.50 - - 120.00 - - -
SD40 SD35 158.12 158.12 - - 46.47 185.88 185.88 - 240.00 - - - -
SD40 RM70 - 33.33 70.00 38.89 - - 38.89 - 33.33 - - - -
SD40 RM30 - 150.00 135.00 168.75 - - 168.75 - 75.00 - - - -
SD40 LB10 - 20.00 25.00 25.00 - - 25.00 - 60.00 - - - -
1212GHG SD25 1,766.67 1,766.67 - - 2,024.44 2,024.44 2,024.44 50.00 - - - - -
1212GHG SD30 642.90 642.90 - - 368.52 737.04 737.04 100.00 - - - - -
1212GHG SD18 313.67 313.67 - - 357.00 357.00 357.00 50.00 - - - - -
1212GHG RM30 - 1,200.00 135.00 1,350.00 - - 1,350.00 500.00 - - - - -
1212GHG RM55 - 117.65 62.00 145.88 - - 145.88 117.65 - - - - -
1212GHG LB10 - 60.00 25.00 75.00 - - 75.00 150.00 - - - - -
1212GHG LB15 - 30.00 36.00 36.00 - - 36.00 50.00 - - - - -
1212PHP SD25 1,766.67 1,766.67 - - 2,024.44 2,024.44 2,024.44 30.00 - - - - -
1212PHP SD40 722.90 722.90 - - 418.52 837.04 837.04 60.00 - - - - -
1212PHP SD18 313.67 313.67 - - 357.00 357.00 357.00 30.00 - - - - -
1212PHP RM30 - 1,200.00 135.00 1,350.00 - - 1,350.00 300.00 - - - - -
1212PHP RM55 - 117.65 62.00 145.88 - - 145.88 70.59 - - - - -

Page 12 of 16
Bills of Material
Costing Components Set-up
© www.excel-skills.com
Product Stock Component Intermed Bought-In Bought-In WI I/M WI I/M Prod What-If Level1 Level2 Level3 Level4 Level5 Level6
Product Cost
Code Stock Code Prod Cost WI Price WI Cost Comp Cost Cost Cost Forecast Forecast Forecast Forecast Forecast Forecast
1212PHP RM80 - 463.16 250.00 526.32 - - 526.32 63.16 - - - - -
1212PHP RM85 - 294.12 280.00 329.41 - - 329.41 35.29 - - - - -
1212PHP LB10 - 60.00 25.00 75.00 - - 75.00 90.00 - - - - -
1212PHP LB15 - 30.00 36.00 36.00 - - 36.00 30.00 - - - - -
1212THT SD25 1,766.67 1,766.67 - - 2,024.44 2,024.44 2,024.44 75.00 - - - - -
1212THT SD18 313.67 313.67 - - 357.00 357.00 357.00 75.00 - - - - -
1212THT RM30 - 1,333.33 135.00 1,500.00 - - 1,500.00 833.33 - - - - -
1212THT RM55 - 117.65 62.00 145.88 - - 145.88 176.47 - - - - -
1212THT LB10 - 60.00 25.00 75.00 - - 75.00 225.00 - - - - -
1212THT LB15 - 30.00 36.00 36.00 - - 36.00 75.00 - - - - -

Page 13 of 16
Product Costing

Stock Code Description Type Total Cost What-If Cost Variance

1212PHP Painted Garden Shed Manufactured 4,968.16 5,681.10 14.4%
© www.excel-skills.com
Stock Product Component Input Product Component What-If % Cost
Description UOM Yield
Code Type Cost Quantity Cost % Cost Variance
SD25 Roof Units Manufactured 1,766.67 1.000 100.0% 1,766.67 35.6% 2,024.44 14.6%
SD40 Glazed Window Frame Units Manufactured 361.45 2.000 100.0% 722.90 14.6% 837.04 15.8%
SD18 Door Units Manufactured 313.67 1.000 100.0% 313.67 6.3% 357.00 13.8%
RM30 Wood M2 Bought-In 120.00 9.000 90.0% 1,200.00 24.2% 1,350.00 12.5%
RM55 2 Inch Screws Bag Bought-In 50.00 2.000 85.0% 117.65 2.4% 145.88 24.0%
RM80 Paint - White Drum Bought-In 220.00 2.000 95.0% 463.16 9.3% 526.32 13.6%
RM85 Paint - Green Drum Bought-In 250.00 1.000 85.0% 294.12 5.9% 329.41 12.0%
LB10 Labour - Grade 1 Hours Bought-In 20.00 3.000 100.0% 60.00 1.2% 75.00 25.0%
LB15 Labour - Grade 2 Hours Bought-In 30.00 1.000 100.0% 30.00 0.6% 36.00 20.0%

On this sheet:
The product costing calculations on this sheet enable users to view a detailed costing for any
manufactured product. The sheet requires no user input – all the cost components are automatically
calculated based on the stock code selected from the list box in cell A4. The calculations on this sheet
can also be used to analyze the effect that component price increases have on individual product
costings by comparing the product cost and what-if cost of a manufactured product.

Page 14 of 16
Production Forecast
Production Quantity Forecast Date Prepared: 3/11/2023
© www.excel-skills.com
Stock Code Description UOM Error Code Quantity
1212GHG Garden Shed Units - 50.00
1212PHP Painted Garden Shed Units - 30.00
1212THT Tools Shed Units - 75.00

On this sheet:
The production forecast can be used to calculate the stock component quantities required to produce
the manufactured stock quantities entered on this sheet. Simply enter the appropriate manufactured
stock quantities and the component stock quantities are calculated and displayed in column J on the
"StockCode" sheet. The columns with light blue column headings contain formulas which are
automatically copied for all new products added to the table.

Page 15 of 16
Margin Analysis
Finished Products
© www.excel-skills.com
Error Selling Product Gross Gross Profit What-If What-If What-If What-If Selling Price
Stock Code Description UOM
Code Price Cost Profit % Cost Gross Profit GP % Selling Price Variance
1212GHG Garden Shed Units - 5,500.00 4,130.88 1,369.12 24.9% 4,725.37 774.63 14.1% 6,291.52 14.4%
1212PHP Painted Garden Shed Units - 6,000.00 4,968.16 1,031.84 17.2% 5,681.10 318.90 5.3% 6,861.01 14.4%
1212THT Tools Shed Units - 4,500.00 3,621.31 878.69 19.5% 4,138.33 361.67 8.0% 5,142.46 14.3%

On this sheet:
The calculations on this sheet enable users to calculate the actual gross profit percentage of all manufactured products
based on the selling prices entered in column E. User input is limited to selecting the stock code and entering the
appropriate selling price – all the columns with light blue headings contain formulas which are automatically copied
for all the new stock codes that are added to the table. A calculation of the what-if gross profit is also included and the
what-if selling price is calculated by applying the actual gross profit percentage to the what-if cost.

Page 16 of 16