Manufacturing Statement Example

A manufacturing statement is a document which outlines the total costs incurred by a company, a business or any other enterprise in producing or manufacturing a particular item or product. It is a document which contains a number of elements like overhead costs, labor charges, associated costs and so on, and is usually prepared in order to subtract the total manufacturing cost from the overall profits obtained by the company on selling the products. Thus, a manufacturing statement must be written well, with accuracy.

Sample Manufacturing Statement Example:

The following manufacturing cost statement accounts for the products mentioned below and for the time period stipulated. Any errors in the document must be rectified by an application to Nancy Gomes, Head, Accounts department, Contents Pvt. Ltd.

Name of product: Office Executive Stationery Range

Product developed and manufactured in: August to October 2011

Nature of product: This range of stationery has been launched by the company recently. It has yet to hit the markets, but the interest generated has been positive. This range caters specifically to offices and includes products like files, folders, pens, clips, paperweights, markers and so on.

Break up of manufacturing costs:

  • Overhead charges [for total product range]: 5 million USD
  • Labor charges: 4million USD
  • Cost of primary material: 6 million USD
  • Cost of secondary material [sourced from external agencies]: 7million USD

Total manufacturing cost: 21 million USD

Expected sales revenue to be generated: 30million USD

Time period for which the above calculations have been made: November 2011


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