Go to manufacturing order detail -> Costing tab. After the Manufacturing order has the status of done, the Total Labor Cost will be calculated.
Cost of product = Total Material Cost + Total Labour Cost.
in there:
- Total Material Cost = ∑ ( Quantity * Purchase price of each component). The purchase price is the inventory price for each batch.
For example: component A with opening stock = 0, we create 2 inventory receiving vouchers with different purchase prices:
1st : quantity = 10 ; purchase price = 20 USD
2nd: quantity = 5 ; purchase price = 15 USD
We use 12 component A to produce finished product XYZ ==> Material Cost = (10 * 20) + (2 * 15) = 230 USD
- Total Labour Cost = Total employee working cost + Total work center cost
+ Total employee working cost = ∑ (Cost/Hour * Real duration each work center) . Cost/Hour is configured at Setting -> General setting
+ Total work center cost = ∑ (cost per hour on each work center * Real duration each work center). Cost per hour on each work center is configured at Work Center
