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    MIE Solutions Blog

Material Cost Calculation

By Dave Ferguson
March 10, 2011
, By Dave Ferguson
March 10, 2011
, By Dave Ferguson
March 10, 2011
, By Dave Ferguson
March 10, 2011
, By Dave Ferguson
March 10, 2011
, By Dave Ferguson
March 10, 2011
, By Dave Ferguson
March 10, 2011
, By Dave Ferguson
March 10, 2011
, By Dave Ferguson
March 10, 2011
, By Dave Ferguson
March 10, 2011
, By Dave Ferguson
March 10, 2011
, By Dave Ferguson
March 10, 2011
, By Dave Ferguson
March 10, 2011
, By Dave Ferguson
March 10, 2011
, By Dave Ferguson
March 10, 2011
, By Dave Ferguson
March 10, 2011
, By Dave Ferguson
March 10, 2011
, By Dave Ferguson
March 10, 2011

Material cost calculation potentially involves a lot of information.  In my previous blog I mentioned many of the data points involved in the material cost calculation including Parts Size, Blank Size, Stock Size, Safety Stock Size, and others.  One...
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Raw Material Sheets Cost Calculation

By Dave Ferguson
March 05, 2011
, By Dave Ferguson
March 05, 2011
, By Dave Ferguson
March 05, 2011
, By Dave Ferguson
March 05, 2011
, By Dave Ferguson
March 05, 2011
, By Dave Ferguson
March 05, 2011
, By Dave Ferguson
March 05, 2011
, By Dave Ferguson
March 05, 2011
, By Dave Ferguson
March 05, 2011
, By Dave Ferguson
March 05, 2011
, By Dave Ferguson
March 05, 2011
, By Dave Ferguson
March 05, 2011
, By Dave Ferguson
March 05, 2011
, By Dave Ferguson
March 05, 2011
, By Dave Ferguson
March 05, 2011
, By Dave Ferguson
March 05, 2011
, By Dave Ferguson
March 05, 2011
, By Dave Ferguson
March 05, 2011

Raw material sheets include plates, sheets, plywood and any other commodity item which is x,y and thickness dimensional.  Raw material is usually purchased by weight and is a commodity.  I'm going to define commodities as items where their price...
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Direct Labor Costs

By Dave Ferguson
February 26, 2011
, By Dave Ferguson
February 26, 2011
, By Dave Ferguson
February 26, 2011
, By Dave Ferguson
February 26, 2011
, By Dave Ferguson
February 26, 2011
, By Dave Ferguson
February 26, 2011
, By Dave Ferguson
February 26, 2011
, By Dave Ferguson
February 26, 2011
, By Dave Ferguson
February 26, 2011
, By Dave Ferguson
February 26, 2011
, By Dave Ferguson
February 26, 2011
, By Dave Ferguson
February 26, 2011
, By Dave Ferguson
February 26, 2011

Direct labor costs are those costs which are performed during the production of some product.  The product can be any type of item from a machined part, computer and vehicle.  Labor is required to change a raw material into a product that may be...
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Indirect Material Costs

By Dave Ferguson
February 19, 2011
, By Dave Ferguson
February 19, 2011
, By Dave Ferguson
February 19, 2011
, By Dave Ferguson
February 19, 2011
, By Dave Ferguson
February 19, 2011
, By Dave Ferguson
February 19, 2011
, By Dave Ferguson
February 19, 2011
, By Dave Ferguson
February 19, 2011
, By Dave Ferguson
February 19, 2011
, By Dave Ferguson
February 19, 2011
, By Dave Ferguson
February 19, 2011
, By Dave Ferguson
February 19, 2011
, By Dave Ferguson
February 19, 2011
, By Dave Ferguson
February 19, 2011
, By Dave Ferguson
February 19, 2011
, By Dave Ferguson
February 19, 2011
, By Dave Ferguson
February 19, 2011
, By Dave Ferguson
February 19, 2011

Indirect material costs are those that are not directly added into the product. There are many times where materials are required to manufacture a part but are not put directly into the product.  Examples of this may include oils, lubricants for...
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Material Cost

By Dave Ferguson
February 16, 2011
, By Dave Ferguson
February 16, 2011
, By Dave Ferguson
February 16, 2011
, By Dave Ferguson
February 16, 2011
, By Dave Ferguson
February 16, 2011
, By Dave Ferguson
February 16, 2011
, By Dave Ferguson
February 16, 2011
, By Dave Ferguson
February 16, 2011
, By Dave Ferguson
February 16, 2011
, By Dave Ferguson
February 16, 2011
, By Dave Ferguson
February 16, 2011
, By Dave Ferguson
February 16, 2011
, By Dave Ferguson
February 16, 2011
, By Dave Ferguson
February 16, 2011
, By Dave Ferguson
February 16, 2011
, By Dave Ferguson
February 16, 2011

Material cost is a big subject and will be handled in multiple blog entries.  Material costs are costs that go directly into producing the desired product.  Material costs can be divided into both direct and indirect material costs.  We will focus...
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Manufacturing Costs

By Dave Ferguson
February 15, 2011
, By Dave Ferguson
February 15, 2011
, By Dave Ferguson
February 15, 2011
, By Dave Ferguson
February 15, 2011
, By Dave Ferguson
February 15, 2011
, By Dave Ferguson
February 15, 2011
, By Dave Ferguson
February 15, 2011
, By Dave Ferguson
February 15, 2011
, By Dave Ferguson
February 15, 2011
, By Dave Ferguson
February 15, 2011
, By Dave Ferguson
February 15, 2011
, By Dave Ferguson
February 15, 2011
, By Dave Ferguson
February 15, 2011
, By Dave Ferguson
February 15, 2011
, By Dave Ferguson
February 15, 2011
, By Dave Ferguson
February 15, 2011
, By Dave Ferguson
February 15, 2011
, By Dave Ferguson
February 15, 2011
, By Dave Ferguson
February 15, 2011

Manufacturing costs consist of multiple elements which arrive at the full cost.  When estimating a product to be manufactured the entire costs are distributed between the following elements.
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Direct and Indirect Costs

By Dave Ferguson
February 12, 2011
, By Dave Ferguson
February 12, 2011
, By Dave Ferguson
February 12, 2011
, By Dave Ferguson
February 12, 2011
, By Dave Ferguson
February 12, 2011
, By Dave Ferguson
February 12, 2011
, By Dave Ferguson
February 12, 2011
, By Dave Ferguson
February 12, 2011
, By Dave Ferguson
February 12, 2011
, By Dave Ferguson
February 12, 2011
, By Dave Ferguson
February 12, 2011
, By Dave Ferguson
February 12, 2011
, By Dave Ferguson
February 12, 2011
, By Dave Ferguson
February 12, 2011
, By Dave Ferguson
February 12, 2011
, By Dave Ferguson
February 12, 2011
, By Dave Ferguson
February 12, 2011
, By Dave Ferguson
February 12, 2011
, By Dave Ferguson
February 12, 2011
, By Dave Ferguson
February 12, 2011
, By Dave Ferguson
February 12, 2011

Fixed and variable costs can now be broken down into two more cost types: direct and indirect costs. These classify the costs of parts being manufactured and are critical to calculating shop overhead rates.  Direct costs are those costs that are...
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Fixed and Variable Costs

By Dave Ferguson
February 10, 2011
, By Dave Ferguson
February 10, 2011
, By Dave Ferguson
February 10, 2011
, By Dave Ferguson
February 10, 2011
, By Dave Ferguson
February 10, 2011
, By Dave Ferguson
February 10, 2011
, By Dave Ferguson
February 10, 2011
, By Dave Ferguson
February 10, 2011
, By Dave Ferguson
February 10, 2011
, By Dave Ferguson
February 10, 2011
, By Dave Ferguson
February 10, 2011
, By Dave Ferguson
February 10, 2011
, By Dave Ferguson
February 10, 2011
, By Dave Ferguson
February 10, 2011
, By Dave Ferguson
February 10, 2011
, By Dave Ferguson
February 10, 2011
, By Dave Ferguson
February 10, 2011
, By Dave Ferguson
February 10, 2011
, By Dave Ferguson
February 10, 2011
, By Dave Ferguson
February 10, 2011
, By Dave Ferguson
February 10, 2011
, By Dave Ferguson
February 10, 2011

There are two main types of costs - fixed and variable.  If something is being manufactured, it consists of both fixed and variable costs.  Fixed costs are those that do not change based on a quantity.  This means the cost is fixed if you produce 1...
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Job Costing Software

By Dave Ferguson
February 09, 2011
, By Dave Ferguson
February 09, 2011
, By Dave Ferguson
February 09, 2011
, By Dave Ferguson
February 09, 2011
, By Dave Ferguson
February 09, 2011
, By Dave Ferguson
February 09, 2011
, By Dave Ferguson
February 09, 2011
, By Dave Ferguson
February 09, 2011
, By Dave Ferguson
February 09, 2011
, By Dave Ferguson
February 09, 2011
, By Dave Ferguson
February 09, 2011
, By Dave Ferguson
February 09, 2011
, By Dave Ferguson
February 09, 2011
, By Dave Ferguson
February 09, 2011
, By Dave Ferguson
February 09, 2011
, By Dave Ferguson
February 09, 2011
, By Dave Ferguson
February 09, 2011
, By Dave Ferguson
February 09, 2011
, By Dave Ferguson
February 09, 2011
, By Dave Ferguson
February 09, 2011
, By Dave Ferguson
February 09, 2011

Job Costing has been around for many years to determine the cost of manufacturing a given product.  The process by which the expenses are record is costing.  Job costing software should make the process of recording the transaction simpler and not...
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Techniques for Cost Estimating

By Dave Ferguson
February 08, 2011
, By Dave Ferguson
February 08, 2011
, By Dave Ferguson
February 08, 2011
, By Dave Ferguson
February 08, 2011
, By Dave Ferguson
February 08, 2011
, By Dave Ferguson
February 08, 2011
, By Dave Ferguson
February 08, 2011
, By Dave Ferguson
February 08, 2011
, By Dave Ferguson
February 08, 2011
, By Dave Ferguson
February 08, 2011
, By Dave Ferguson
February 08, 2011
, By Dave Ferguson
February 08, 2011
, By Dave Ferguson
February 08, 2011
, By Dave Ferguson
February 08, 2011
, By Dave Ferguson
February 08, 2011
, By Dave Ferguson
February 08, 2011
, By Dave Ferguson
February 08, 2011
, By Dave Ferguson
February 08, 2011
, By Dave Ferguson
February 08, 2011
, By Dave Ferguson
February 08, 2011
, By Dave Ferguson
February 08, 2011
, By Dave Ferguson
February 08, 2011
, By Dave Ferguson
February 08, 2011
, By Dave Ferguson
February 08, 2011
, By Dave Ferguson
February 08, 2011
, By Dave Ferguson
February 08, 2011
, By Dave Ferguson
February 08, 2011
, By Dave Ferguson
February 08, 2011

The basic cost estimating techniques involve analyzing all factors that make up a cost estimate. The first technique I would follow is to go through the following steps, systematically, and costing each one out in detail. Once you have gone through...
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