What did this batch really cost?
Knowing your true cost to make a product is the difference between pricing with confidence and guessing. IEMSuite builds a per-batch and per-unit cost from the real inputs of each production run.
What goes into the cost
- Material - the actual cost of raw materials and packaging consumed, taken from lot costs (so it reflects what you really paid), including recorded wastage.
Labor and overhead are not automatically added to this calculation. Account for those separately when setting your selling price.
These roll up into a total batch cost, and dividing by the output gives a per-unit cost.
Where to see it
- The batch itself shows its cost breakdown.
- Inventory → Cost Analysis aggregates production costs across batches so you can compare over time. See Cost analysis: purchasing vs production.
Why lot costs matter
Because material cost comes from the specific lots consumed, your product cost tracks real purchase prices instead of a stale average - so margins stay honest as supplier prices move.
Tips
- Keep receiving accurate (including freight) so landed material cost is right.
- Record wastage honestly - it's part of the true cost. See Tracking wastage & yield.
FAQ
Is cost per unit or per batch?
Both - IEMSuite computes the batch total and the per-unit cost from the batch output.
Does it use real or estimated material prices?
Real lot costs from the stock you actually consumed, not a fixed estimate.