COST OF PRODUCTS IN WAREHOUSE

Guest · Post by **Guest** » 15.03.2007, 20:43

I think this has been partly covered elsewhere but I just wanted clarification so that I don't make losses...

I recently opened a food factory in Turkey (Head Office is Saudi Arabia) and have produced Coffee Powder & Flour which say in production that they will cost 0.31 & 0.64 per kg to produce. I have Corn at 1.06 & Coffee Beans at 2.49 in my warehouse. They both use power which I bought at 0.05 (don't think I had any original left??) but when the produce landed in my warehouse they have cost me 10.54 & 11.53 each...

Any help or suggestions would be appreciated...

Guest · Post by **Guest** » 15.03.2007, 20:56

ok yo make your Coffee powder it cost

$5 in power at that price

and coffee beans $4.15

and production cost .31

total cost 9.46

hmm dont know if i did it right

Flour cost

power .5

Corn 10.6

production cost .64

total cost 11.74

also dont look like the right price

hmm dont ask me

Guest · Post by **Guest** » 15.03.2007, 21:01

.....errrrmmm Thanks for trying...

Next...

They seem to have come out costing me pretty much what I was going to sell them at in my stores in Turkey...

...unless I have misunderstood something obvious I don't know if that is the right cost price per kg or not.

Guest · Post by **Guest** » 15.03.2007, 22:39

There was some talk about the price being buggy.

However, your price calculation may be correct. The cost listed is the sum of the production as well as the cost of all the materials. Astrologer was on the right track.

Guest · Post by **Guest** » 15.03.2007, 22:53

also ya better start thinking of making your own power as it would taken off $4 on Coffee powder

Tycoon · Post by **Tycoon** » 16.03.2007, 08:10

could you revise your production costs in the factory for coffee powder? I have a figure stating 3.60 per kg in the red area and with quality 0 (the quality is also important, as the costs change with higher qualities).

Guest · Post by **Guest** » 16.03.2007, 08:22

Thanks for the replies...

I have now produced some Q2 Coffee Powder that has come out at 12.47 each, still not sure if that is right or not...

A full breakdown of how I arrive at the figure would be appreciated, if it is possible, I could provide a mod my details if required...

Tycoon · Post by **Tycoon** » 16.03.2007, 08:35

I have nearly the same figure: 12,62... if I take a basis of Quality=6 (for getting q2 powder). the difference may result from another average price for the beans or the power...

Guest · Post by **Guest** » 16.03.2007, 08:47

Thanks for that, I am a bit worried about the market prices though, there doesn't seem to be much margin there at those prices...

... have I just expanded in the wrong direction...

Tycoon · Post by **Tycoon** » 16.03.2007, 08:59

Yes, there is the same development in the english version than in one of the german. I built a food factory there and experienced that it is not profitable to produce coffee powder...

In this german version biscuits bring much more profit... do not know the development here, however. Just a hint...

Guest · Post by **Guest** » 16.03.2007, 09:13

Thanks for all the advice Tycoon...