Cost & Krishna Report

Management Kotak
77
by
Accounting
Aniket
Arjun Verma
Varma
FLAIR 65
04

WRITING Harish Darshan

INDUSTRIES Singadhia
15
Tapdiya
10
LIMITED
Process Layout
Flair Pens
 Order Received

Production Planning

Material Requirement Planning

Planning as per MRP

Material Inward
Material Outward

In Process components for Writing Instruments

 In Process components for Writing Instruments

Plastic Moulded Components Plastics Refill Tube Tip

Tip manufacturing(auto
Injection Moulding Process Extrusion Process
assembly)

Store

Refill Assembly
(Tip+Tube+Ink+Follower)
Refill Manufacturing Process
Branding(Decoration)

Printing/Foiling/Barcode
(semi-auto Manufacturing Process) Refill Centrifuge And Checking
 Refill
Store Store

Pen Assembly

Auto Assembly Manual Assembly

Packing FG

FG
Store

Dispatch
 Cost sheet of Flair Writing Industries Ltd
as on 31/03/2023
Particulars Total cost ( IN CR.) Total cost per unit
-(80 cr. units)

Direct material 497 6.21

Direct wages 108 1.35
Direct expenses -
Prime cost(A) 605 7.56
(ADD): Factory overheads
Factory Electricity 4.5 0.05
Supervisors salary 15 0.18
Depreciation on factory plants 22 0.27
Factory Insurance 14 55.5 0.17

Work Cost(B) 660.5 8.25

(ADD): Office & Administration Overheads
Office Rent 1.5
Salaries 13 0.16
Tax 39 0.48
Depreciation on office equipment's 2 53.5

Cost of production 714 8.92

(ADD): opening stock of finished goods 186
(LESS): closing stock 190

cost of goods sold 710 8.87

 cost of goods sold 710 8.87

(ADD): Selling & Distribution overheads

Advertisement 19 0.23

Travelling Expences 6 0.07

Packaging Charges 17 0.21

Logistics Expences 15 0.18

Salesman salary 24 81 0.30

Total cost 791 9.88

Profit 112 1.4

Sales 903 11.28

The method used for quality control
Inventory Management At
Flair • First in, first out (FIFO) is an inventory
method that assumes the first goods
purchased are the first goods sold.
This means that older inventory will
get shipped out before newer
inventory and the prices or values of
each piece of inventory represents
the most accurate estimation.
• Flair follows fifo tagging system.
Which is that follow first in first out.
The main reason and why the
company follows FIFO is
because of refills.
Problems Faced by
them company :-

•They had prob in inventory check due to

• No sorting was done that creates problems
for factory team and for us for identification.
• There was no standardization or no SOP for
any process, which creates a risk of
material mismanagement.
Stock verification Reports
Thank You