cost of goods produced will be used in the calculation
of the cost of goods sold and considerations to
determine the selling price of products. This
significantly affects a company's profits. (Mulyadi,
2015)
Profit is the difference between revenue and profit
after deducting expenses and losses, and profit is also a
measurement of operating activities (Riwayadi 2017).
A company’s success or failure is seen from the
company's profits or profits. If the desired company
profit is appropriate, then the company has been
involved in achieving the goal; if the profit received is
not as desired or even a loss, it can be said that the
company has failed to achieve the goal of obtaining
profit. (Bastian, 2017)
Therefore, the problem that can be formulated in
this study is how the treatment of damaged products
determines the cost of finished products at UD. Sari
Rama Bakery and What is the cost of goods for each
finished product at UD. Sari Rama Bakery has adjusted
the actual amount of costs that have been used by each.
The purpose of this study is to determine the
treatment of damaged products to determine the cost of
finished products at UD. Sari Rama Bakery. Determine
the cost of goods for each finished product at UD. Sari
Rama Bakery has adjusted the amount of actual costs
that have been used by each.
According to Nasrul (2016), cost accounting is a
process of identifying, defining, measuring, reporting,
and analyzing elements of direct or indirect costs
related to the production and marketing process of
products.
Cost is the amount of money spent (or can be in
the form of debt) on the company's operational
activities to produce goods or services. Expense is a
decrease in economic benefits during an accounting
period in the form of outflows, decreases in assets, or
the occurrence of liabilities that result in a decrease in
equity that is not related to investment (Darsono,
2013).
In manufacturing enterprises, the cycle of
activities begins with the processing of raw materials in
the production section and ends with the delivery of
finished products to the warehouse section. In
manufacturing companies, the cost accounting cycle
begins by recording the cost of raw materials included
in the production process, followed by recording direct
labor costs and factory overhead costs consumed for
production, and ends with the presentation of the cost
of finished products submitted by the production
department to the warehouse section. Cost accounting
in manufacturing companies aims to present
information on the cost of goods produced per unit of
finished product submitted to a warehouse. (Sampurno,
2012).
According to Kotler (2012), quality refers to all
the characteristics and properties of a product or
service that affect the ability to satisfy stated or implied
needs. This is a consumer-centered definition of
quality: a producer can provide quality if the product or
service provided can meet or exceed consumer
expectations.
The importance of quality can be explained from
two angles, namely from the point of operational
management and marketing management. From the
perspective of operational management, product quality
is an important policy for increasing product
competitiveness that must provide satisfaction to
consumers exceeding or at least equal to the quality of
products from competitors. (William, 2012).
Production costs are the costs used in the
production process, consisting of direct raw material
costs, direct labor costs, and factory overhead costs.
This production cost is also called the product cost,
which is the cost that can be associated with a product,
and is part of the inventory.
The cost of the goods produced is closely related
to the indicators of company success. The cost of goods
produced shows the cost of goods (goods and services)
produced in a certain accounting period. This means
that the cost of the goods produced is part of the cost
price, which is the cost of goods sold in an accounting
period. According to Mulyadi (2015), the benefits
obtained from the Cost of Goods Produced information
for management are as follows:1) determine the selling
price of a product, 2) control production cost practices
in the field, 3) calculate and know periodic profits or
losses of the business, and 4) determine the cost of
goods inventories and products in the process.
The methods of determining the cost of goods
produced are the full costing method and variable
costing. Full costing is a method of determining
production costs that takes into account all elements of
production costs, including raw material costs, direct
labor costs, and factory overhead costs, both variable
and fixed (Mulyadi, 2015). Variable costing is a
method of determining the cost of production that only
considers production costs that only behave variably