0:02 So brothers and sisters now we will go into our next lesson which is chapter 9 or we are talking about industrial companies or manufacturing companies yes So if we talk about industrial companies it is part of the type of company as we know that there are three types of companies based on their business fields the first is called a service company the second is what we call a trading company and the third is an
0:49 industrial company in a service company they will offer services their trading company sells merchandise and their industrial company sells industrial goods means if it is said that the service company they offer services means there are no goods that they sell so in a service company if we look at the type of inventory it means there is no inventory in a service company while if we talk about a trading company the trading company sells merchandise what we call merchandise the merchandise is goods that are
1:36 purchased with the aim of being resold without changing the form of the merchandise that will be sold so what we call merchandise How is it purchased from the producer so will it be sold to consumers without experiencing significant changes in form in a trading company the type of inventory of a trading company is only one that is what we call merchandise inventory or we call it as merchandise inventory while if we talk about the third company means the third company is said to be an industrial company what is an industrial company an industrial company
2:23 is a company that sells industrial goods yes an industrial company is a company that sells industrial goods what we call industrial goods goods produced through the production process so industrial goods are goods produced through the production process what we call the production process means the processing of raw materials processed into goods in process then processed again into finished goods yes means What are raw materials raw materials are goods that will be processed in the
3:10 production process what is said as goods in process goods that have been processed but not yet finished what is called finished goods finished goods are goods that have been finished but have not been sold meaning not yet sold yes not yet sold to consumers means from the three types of production processes this raw material goods in process then finished goods That means there are three types of inventory in an industrial company the first means we call it raw material inventory or Raw material inventory the second is inventory of goods in process
3:57 or we call it goods in process inventory and the third we call it finished goods inventory or we call it finished inventory can you understand yes finished inventory so in carrying out this production process Of course there are costs that we incur in carrying out the production process, right, in carrying out the production process, the costs incurred in the production process are what is known as production costs, yes, that's what is known as production costs, what is said so in
4:44 general, yes, brothers and sisters, in general, there are two types of costs, yes, in general, there are two types of costs, the first is called production costs or production costs, the second is called non-production costs, non-production costs or also called business costs or operational costs or also known as business expenses or operational expenses, yes, Non-production costs or operational EXP,
5:31 yes, so from there we can see in general, what is the meaning of production costs, production costs are costs incurred in relation to products produced by the company, understand, yes, production costs are costs related to products produced by the company, that's what is said as production costs, while the second cost, non-production costs, what is the meaning of the previous one, also costs
6:19 incurred are not related to products produced by the company, so production costs are costs related to costs incurred related to products produced by the company, while non-production costs are costs incurred are not related to products produced by the company, the first thing we have to understand is the difference between production costs and non-production costs or business costs or
7:05 operational costs, understand, yes, what is now Next what is the production cost divided into two again yes this production cost is divided into two earlier there are two production costs non-production costs this production cost is divided into two again or consists of two parts the first is called direct production cost the second is indirect production cost indirect production cost yes indirect production cost we also call it factory overhead cost so indirect production cost
7:51 indirect production cost or factory overhead cost overhead manufacturing cost what is the meaning what is the difference between direct production cost and indirect production cost if we call it as direct production cost it means that the cost incurred is directly related yes the cost incurred is directly related to the product produced by the company is directly related to the product produced by the company while indirect production cost or factory overhead cost what is the cost that is
8:40 indirectly related yes the cost that is indirectly related to the product produced by the company can understand now this direct production cost is divided into two again there are two types of direct production cost direct production cost direct production cost consists of two parts morning the first is said to be the cost of direct raw materials direct material cost the second is the cost or direct labor cost direct labor cost can understand
9:26 yes direct production cost there are two there are direct raw materials direct material cost there are direct labor wages or said to be direct direct labor cost direct labor wages direct labor cost What are direct raw materials direct raw material costs direct material costs So if from the previous definition direct material cost What are raw material costs that are directly related to the products produced by the company raw material costs that are
10:14 directly related to the products produced by the company while direct labor wages are what are labor wages that are directly related to the products produced by the company labor wages that are directly related to the products produced by the company can understand while indirect production costs or factory overhead costs consist of two parts and even three what is the first if the direct production costs there are
11:01 direct raw materials there is direct labor if indirect production consists of What are indirect raw materials indirect raw material costs or are said to be indirect material costs and the second what are indirect labor wages indirect labor costs so these indirect raw materials are often also referred to as auxiliary raw materials or auxiliary raw materials yes indirect raw materials are often also referred to as auxiliary raw materials or
11:47 auxiliary raw materials can understand understand yes while indirect labor wages are indirect labor costs yes What are auxiliary raw materials or auxiliary or indirect raw materials indirect material costs so indirect raw materials are the cost of materials raw materials issued are indirectly related to the products produced by the company raw materials issued are indirectly related to the products produced by the company while indirect labor wages are what are labor wages
12:33 issued are indirectly related to the products produced by the company while the third type of indirect production costs or the third factory overhead costs are what are they called other indirect production costs or other factory overhead costs yes other BOP what we call other BOP so other BOP are costs incurred or incurred or paid in the factory can you remember yes costs incurred or costs incurred in the factory
13:21 other than direct material cost direct Ind material Ind lab if it occurs in the factory enter it yes enter it as other indirect production costs or other BOP can you understand yes costs incurred in the factory other than darada material lab cost indirect material cost indirect labor cost enter it as other BOP other indirect production costs
14:14 can you understand so now What is the difference between direct raw materials and indirect raw materials understand yes What is the difference between direct raw material costs and indirect raw material costs for example brothers and sisters ee for example in making sponge cake for example bolu meranti Yes have you ever eaten it? Ranti, right? Yes, you eat without sharing, right? So, if there is, for example, Meranti sponge cake. What is the basis for making it? What are the raw materials
14:59 needed? The first is flour, the second is butter. The third is eggs. There are eggs, eggs, eggs, eggs, eggs, right? So, what we mentioned earlier, brothers and sisters, is what is the direct raw material? So, the previous product, the previous material is directly related to the product produced by the company. If we consume it, if we eat sponge cake,
15:46 those elements are in it, right? While indirect raw materials are the wrapping paper, there is the brain, the wrapping, or we buy it too, but when we consume it, the paper doesn't come with us, we don't consume it, that means it's called indirect raw materials. You can understand, just like making soy sauce. Right, if we make soy sauce, there are soybeans, not donkeys, right, soybeans, understand, salt water and brown sugar, maybe? Ah, that's
16:32 to make soy sauce, that's the direct raw material, while the bottle, that's the packaging, that's an indirect raw material, so that's the difference between direct raw materials and indirect raw materials. You can understand, you can understand there now, what? difference between direct labor and indirect labor If direct labor is labor, yes, people or employees or workers who directly work or who make the product That's what we call it, what is
17:20 direct labor lab cost, while if we talk about indirect labor, what is in the company, who is in the factory, we give wages, we give salaries, but they are not directly involved in the products produced by the company. Who is in the factory, there are managers, there are foremen, there are supervisors, there are cleaning staff, there are service officers, right? These people are in the factory,
18:05 but they don't work to make the product, you can understand. So that's what is said to be able to distinguish between direct labor and indirect labor. Now we are talking about what other factory overhead costs or other indirect production costs are the costs that occur in the factory other than what direct material costs, direct labor costs, well, indirect material costs, indirect labor costs, right? For example, the cost of depreciation of factory machinery is
18:51 another BOP, factory electricity costs, if the cost of electricity in the factory is another BOP, but if the cost of electricity in the office, if the cost of electricity in the office is included in the business costs or operational costs, you can understand the cost of depreciation of the factory building, BOP other depreciation costs of office buildings are called general administrative costs are included in business costs or operational costs can understand If it does not occur in the factory
19:36 it is included in business costs or operational costs non-production costs understand then brothers and sisters in the company in the industrial company the costs also consist of two parts in general there is a name we call it as the main cost yes prime cost there is also said to be a conversion cost or conversion cost what we call the main cost the main cost what consists of direct material cost direct raw materials direct raw material costs plus what
20:21 direct labor wages yes lab cost so material cost plus direct labor cost that's what the name is what the main cost can understand That's what we call the main cost while what we call the conversion cost is what direct labor cost direct labor wages plus BP remember yes direct lab cost direct labor wages plus factory overhead costs or other indirect production costs back again that
21:06 po Bop consists of what yes direct lab d b Bop consists of indir material indir lab and also other Bop can understand brothers and sisters then yes we see in the preparation of the profit and loss report of the industrial company yes there is we know or in the production process there is we know as the cost of production cost of goods manufacturing and there is also we call it as cost of goods sold or cost
21:55 of Good yes cost of production cost of goods sold so if we relate it to inventory as a determinant of the calculation of the cost of production what if earlier inventory there was raw material inventory there was inventory of goods in process then there was inventory of finished goods so the inventory of raw materials and inventory of goods in process is the determinant of what the calculation of the cost of production can understand the calculation of the cost of production while the determinant or
22:41 calculating the cost of goods sold is the inventory of finished goods finished goods inventory plus the cost of production can yes inventory of finished goods Plus the blood of the cost of production so each of these inventories has an initial inventory and there is an ending inventory That means there is an initial inventory of raw materials there is an ending inventory of raw materials there is an ending inventory of goods in process there is an ending inventory of goods in process there is an ending inventory of finished goods and there is an ending inventory of finished goods so That's it, brothers and sisters, if we may see the definition of an industrial company,
23:28 types of inventory in an industrial company and the costs that arise in an industrial company, then we will see how the profit and loss reports of industrial companies, yes we may see the title, what is the formula that we see and also the next question we will see in the next section
