COST ACCOUNTING

SEMMESTER PROJECT
UNIT COST OF A PRODUCT
GROUP MEMBERS

ABDUL WAHEED MAJEED FA17-BBA-017

ANEES JAVED FA17-BBA-037
ABDUL HASEEB FA-17-BBA-014
AKBAR ALI SADIQ SP-19-BBA-151
 INTRODUCTION

Our project is about determining the per unit cost of a product. We

have selected to determine the cost of doodh patti (chai), and for this
purpose the café that we have chosen is Student Corner located in
Hostel City Royal Avenue Islamabad.
 CAFÉ PROFILE
The student corner café is best known for its Tea and Paratha in
market. And have more branches located in different locations.
Student corner Café is known for its quality and hygienic food.

It has been operating in the town since last 5 years and it has
grabbed already a huge market share and is operating there as a
giant café in the town with maximum number of customers.
 LIST OF FOOD ITEMS

 List of what Student Corner Café serves is given below

 Special Doodh Patti
 Sabz Qehwa ( Green Tea)
 Aloo Paratha/ simple Paratha
 Half/Full fry
 Omlet
 Daal Channa
 Daal mash
 Aalo Mattar
 Lobiya
 Beef Qeema
 METHODOLOGY
 We collected the entire data by personally visiting the café .
 Made a visit too their storage house.
 Collect data
 Roughly collected the data first hand then properly analyzed that
data.
 Process costing method.
PRODUCT COST DATA

MILK DIRECT MATERIAL 3600*80 =288000

SUGAR DIRECT MATERIAL 200*76 =15200
TEA DIRECT MATERIAL 2000*30 =60000
EMPLOYEE DIRECT LABOR =15000
SALARY
GASS DIRECT MATERIAL =5000
CONSUMPTION
ELECTRICITY POHR =6000
CONSUMPTION
TOTAL =389200
 CALCULATING COST PER UNIT

Total units produced =24000 cups

Per unit cost:

formula Per unit price =total direct material + total direct

labor/no of units produced =368200+15000+6000/24000=
16.21
 ANALYSIS

After having the complete information we started to calculating the

per unit cost of (doodh pati) by applying cost accounting tools and
techniques ( process costing method) so we end up with a result that
cost is RS 16.21 per cup and its selling price is RS 30 per cup i.e. they
have a profit margin of RS 13.79 per cup which is great.
 CONCLUSION

By viewing all the activities of Student Corner cafe, the large

number of their customers and their significant profit margin on
doodh patti (chai)we came up with a conclusion that generate a
revenue of round about RS 720000 per month and deducting all their
expenses of RS 390000 they left up with a total profit of RS330000 .
 RECOMMENDATIONS

 Use sunlight instead of electricity during day hours.

 Efficient usage of washing products.
 Customer Feedback
 hadudy ishq ki janch ky pamany nai hoty
jo chai ky dewany hon wo ksi or ky dewany nai
hoty
THANK YOU