Calculation of Production Cost Using the Full Costing Method In the Conversion Cycle of Opak Sukadalem Umkm In the Era of Microeconomic Digitalization

Indonesia

Abstract

Precise calculation of the Cost of Goods Manufactured (COGM) is a crucial foundation for the financial resilience of Micro, Small, and Medium Enterprises (MSMEs) in the microeconomy digitalization era. Most traditional food processing MSMEs still ignore fixed Factory Overhead Costs (FOC) and rely on estimation methods, which potentially triggers pricing distortion (underpricing or overpricing). This Community Service activity aims to assist and educate the Opak Sukadalem MSME partner in Sukadalem Village in reconstructing the COGM calculation process based on the Full Costing method across its conversion cycle. The implementation method utilized Participatory Action Research through four stages: field observation, cost reconstruction, digital COGM worksheet training/implementation, and partner capacity evaluation. The results showed that the Full Costing calculation yielded a real COGM of IDR 4,230 per pack (250 grams) from a total production cost of IDR 846,000 per cycle (output of 200 packs). This figure optimized the partner's initial estimate of IDR 5,200 per pack, which experienced overestimation due to the absence of a structured allocation for overhead costs and auxiliary materials. With a standardized selling price adjustment of IDR 8,000 per pack based on digital standing pouch packaging improvements, the partner's real gross profit margin increased from 25.7% to 47.1% (a 109.4% profitability increase per cycle). The N-Gain score evaluation of 0.72 confirms that this mentoring program is highly effective in improving the partner's cost accounting literacy and independence.