Manufacturing costs for davenport company during 2018 were as follows:

Manufacturing Cost Analysis for a Davenport Company

Manufacturing cost analysis is a great tool to help your management team find areas where you can save money. It can also highlight problem areas and help you make the right choices. By understanding all of your costs, you can get the most out of your budget.

The best way to do this is to look at your numbers on an annual basis and see how they have changed. This can be done by using time sheets or a job order costing guide. If you have not done this yet, it is well worth the effort. For example, if you are using a standard costing method, the total factory cost is calculated as the sum of direct material costs, depreciation on factory equipment, and factory overhead. A more thorough analysis would involve a comprehensive inventory of your finished goods.

In addition to the cost of goods manufactured, you should also track the cost of sales. Your cost of goods sold is the total of all costs incurred to manufacture and sell your product. Likewise, your gross margin is a mathematical calculation that equals your total operating expenses minus your gross profit. You may even want to consider creating a sales budget or a purchasing budget. These budgets can be used as a springboard for further analysis.

Using a good job order costing guide or time log can give you an accurate and timely picture of all your expenses. To do this, you will need to know your cost of labor, manufacturing equipment, and raw materials. As a result, you can make smarter, more profitable decisions about your business.