10/8/2023 G.

ETHIO - ENGINEERING GROUP

RESEARCH AND DEVELOPMENT CENTER
S/n Description U/M Quan Unit price Amount Remark
tity
1. Direct material cost
Plated frame Kg 55 210 br 115,500 br
0
Disk and accessories Kg 25 210 br 52,500 br
0
Die (D2 material) Kg 13 850 br 1,142,400 br
44 1,142,400/300 =
3808/implement
Total direct material cost 183,232 birr
2
Direct Labour cost
 Total worker ------10 person
 Estimated salary-----9500br, so 9500/30= 316.66br per day
 Working day-----5 days, so 316.66 * 5 days * 10 person
 Total labor cost in one implement is 15,833.33 br.

Total direct Labour cost in 5 days 15833.33 br.

3 Direct material and Labour total 199,065.33 br
Manufacturing overhead cost
(Depreciation of equipment, salary
and wages paid to factory personnels 64,218 br
and electricity used to operate the
implement.)
Total factory cost 263,283.33 br
Selling and admn. Overhead cost
(employee salaries, rent, office 30,000 br
supplies, insurance, and professional
services)
Total cost 293,283.33 br
Profit margin 40000br
Selling price before tax 333,283.33 br
COST SHEET FORM FOR FOUR DISK PLOUGH TRACTOR IMPLIMENT
 In order to manufacture this, implement our manufacturing cost is 333,283.33-birr
Adama factory current selling price is 479,000 Birr (with vat) so its profitable if we
manufactured. Prepared by: Biruk m.