ANALYSIS OF COST OF GOOD MANUFACTURED (COGM) CALCULATION USING FULL COSTING METHOD ON SME ‘X’
Micro, Small, and Medium Enterprises (MSMEs) play an essential role in the Indonesian economy, contributing 61.07% of the GDP and 96.9% of employment. Taking into account the importance of the role of MSMEs, special attention is needed to overcome one of the main problems often faced by MSME actors, namely errors in calculating the Cost of Production (COGM). One of the suitable methods for calculating COGM is the full costing method. This study uses a descriptive research method with a qualitative approach. The focus of this research is the analysis of the calculation of the Cost of Production using the full costing method. This research uses primary and secondary data sources, interview data collection techniques, observation, and documentation. Furthermore, we are testing the data using qualitative methods, which is the triangulation technique. This study aims to analyze the calculation of the COGM for peanut cookies according to the calculation of SMEs ‘X’, a pastry producer, and the COGM calculation using the full costing method. Based on the research results, the COGM calculation results according to SMEs ‘X’ are IDR 31,000 per jar, and according to the full costing method IDR 36,800 per jar, the difference is IDR 8,500 per jar. This significant difference in COGM understatement certainly impacts SMEs ‘X’ business finances. We hope that the results of this research can be used by SMEs X’ to determine the selling price of the cookies so that it can increase the profitability of its business.
Full Costing, Cost of Production, SMEs, Cost Accounting