The use of job costing as a tool for the pricing and cost control decisions in the printing industry: the case of Société de Presse et d'Editions (SOPECAM)

III. DETERMINATION OF THE UNIT COST

A. ABSORPTION COSTING

Using the computer software Microsoft EXCEL®, it has been possible for us to come out with the following daily unit manufacturing cost for the newspaper Cameroon Tribune. It can be roughly presented as follows using the format of an income statement:

Table 4-9 Unit cost determination using absorption costing (income statement format)

ABSORPTION COSTING METHOD FOR THE DETERMINATION OF THE UNIT COST OF THE NEWSPAPER
	Monday	TUESDAY	Wednesday	Thursday	Friday	Totals
COSTS
DIRECT MATERIALS
paper	985 320 F	1 231 650 F	985 320 F	1 231 650 F	1 724 310 F	6 158 250 F
black ink	150 000 F	140 000 F	110 000 F	150 000 F	150 000 F	700 000 F
blue ink	30 000 F	10 000 F	20 000 F	20 000 F	20 000 F	100 000 F
red ink	40 000 F	10 000 F	30 000 F	20 000 F	50 000 F	150 000 F
yellow ink	20 000 F	20 000 F	20 000 F	20 000 F	20 000 F	100 000 F
photographic sheet	500 000 F	500 000 F	500 000 F	500 000 F	500 000 F	2 500 000 F
photographic film	60 000 F	60 000 F	60 000 F	60 000 F	60 000 F	300 000 F
Sheet Developer	99 000 F	79 200 F	59 400 F	79 200 F	79 200 F	396 000 F
Film developer	4 500 F	9 000 F	9 000 F	9 000 F	13 500 F	45 000 F
Film fixing liquid	9 000 F	9 000 F	4 500 F	9 000 F	13 500 F	45 000 F
sheet proofreader	1 080 F	3 240 F	2 160 F	2 160 F	2 160 F	10 800 F
eraser	2 400 F	4 000 F	800 F	4 000 F	4 800 F	16 000 F
soaking solution	30 000 F	24 000 F	24 000 F	12 000 F	30 000 F	120 000 F
sheet cleaner	10 920 F	12 480 F	9 360 F	14 040 F	15 600 F	62 400 F
tracing paper	5 000 F	10 000 F	10 000 F	10 000 F	15 000 F	50 000 F
photocopy paper A4	15 000 F	20 000 F	25 000 F	20 000 F	10 000 F	90 000 F
photocopy paper A3	1 750 F	3 500 F	3 500 F	5 250 F	3 500 F	17 500 F
transparent sellotape	280 F	280 F	280 F	280 F	280 F	1 400 F
packaging sellotape	1 120 F	1 120 F	1 120 F	1 120 F	1 120 F	5 600 F
packaging string	2 700 F	2 700 F	2 700 F	2 700 F	2 700 F	13 500 F
white glue	700 F	700 F	700 F	700 F	700 F	3 500 F
industrial rag	14 000 F	14 000 F	14 000 F	14 000 F	14 000 F	70 000 F
soap paste	600 F	600 F	600 F	600 F	600 F	3 000 F
toner cartridge HP1200	90 000 F	90 000 F	120 000 F	180 000 F	240 000 F	720 000 F
toner cartridge HP5000	10 800 F	12 600 F	9 000 F	9 000 F	12 600 F	54 000 F
toner cartridge HP8500-black	1 200 F	1 200 F	1 200 F	1 200 F	1 200 F	6 000 F
toner cartridge HP8500-blue	1 200 F	1 200 F	1 200 F	1 200 F	1 200 F	6 000 F
toner cartridge HP8500-Red	1 200 F	1 200 F	1 200 F	1 200 F	1 200 F	6 000 F
toner cartridgeHP8500-yellow	1 200 F	1 200 F	1 200 F	1 200 F	1 200 F	6 000 F
drummer KitC4153A	1 200 F	1 200 F	1 200 F	1 200 F	1 200 F	6 000 F
total material cost	2 090 170 F	2 274 070 F	2 027 440 F	2 380 700 F	2 989 570 F	11 761 950 F
DIRECT LABOUR
direct labour for pre-printing	42 000 F	48 000 F	45 000 F	54 000 F	48 000 F	237 000 F
direct labour for copy	4 500 F	5 000 F	5 000 F	4 500 F	5 500 F	24 500 F
direct labour for soaking	15 000 F	18 000 F	15 000 F	18 000 F	18 000 F	84 000 F
direct labour for printing works	112 500 F	112 500 F	135 000 F	135 000 F	135 000 F	630 000 F
direct labour for edition	102 000 F	102 000 F	102 000 F	102 000 F	102 000 F	510 000 F
Total labour costs	276 000 F	285 500 F	302 000 F	313 500 F	308 500 F	1 485 500 F
total material and labour costs	2 366 170 F	2 559 570 F	2 329 440 F	2 694 200 F	3 298 070 F	13 247 450 F
FACTORY OVERHEADS
water bills (variable)	14 000 F	12 000 F	15 000 F	13 600 F	13 000 F	67 600 F
electricity bills (variable)	42 000 F	45 000 F	40 000 F	43 000 F	40 000 F	210 000 F
depreciation (fixed)	895 384 F	895 384 F	895 384 F	895 384 F	895 384 F	4 476 921 F
spare parts (variable)	85 000 F	100 000 F	110 000 F	60 000 F	63 000 F	418 000 F
Total factory overheads	1 036 384 F	1 052 384 F	1 060 384 F	1 011 984 F	1 011 384 F	5 172 521 F
SELLING AND ADMIN.
fixed admin. Exp.	500 000 F	500 000 F	500 000 F	500 000 F	500 000 F	2 500 000 F
variable admin. Exp.	250 000 F	300 000 F	350 000 F	250 000 F	200 000 F	1 350 000 F
variable selling exp.	200 000 F	150 000 F	250 000 F	150 000 F	200 000 F	950 000 F
fixed selling exp.	100 000 F	100 000 F	100 000 F	100 000 F	100 000 F	500 000 F
Total seling and Admin. Costs	1 050 000 F	1 050 000 F	1 200 000 F	1 000 000 F	1 000 000 F	5 300 000 F
total costs	4 452 554 F	4 661 954 F	4 589 824 F	4 706 184 F	5 309 454 F	23 719 971 F
Units produced	10 000	10 000	10 000	10 000	10 000	50 000 F
daily unit cost	445 F	466 F	459 F	471 F	531 F	474,3994274
Mean unit cost	474 F

Source: The author