The document outlines the costs and processes involved in a tuna manufacturing business that aims to produce 500,000 cans of tuna per month. It details the supply costs of tuna fish, packaging materials, labor costs, and overhead costs. The total weekly cost of materials is P1,467,700, labor is P40,300, and overhead is P11,375, for a total weekly cost of P1,519,375. Major equipment includes processing machines that cost P26,244,000 with an 18 year lifespan.

1. Tuna Manufacturing
Cost of Production

2. Target : 25,000 cans per day
125,000 cans per week
500,000 cans per month
Price @ P22.00
Days : 5times a week ; 20 days
Time : 8am to 5pm
Can: 90 grams
(80grams of Tuna
7grams of Oil and Additives,
3 grams can)

4. Tuna Fish
Shipping Price=P50,000.00
from Gensan to Batangas City
Supplier : “CISCEL TUNA SUPPLIER”
Cost of Tuna: 11tons of Tuna
where: 1 ton of Tuna=P120,000.00
P1,320,000.00 per week

5. Tuna Fish (per week)
125,000 cans per week
Where:
80grams of Tuna Fishx125,000cans
=10,000,000grams
=10,000,000grams x(1g/1,000kg)
=10,0000kilograms
=10,000kilogramsx(1ton/907.185kg)
=11tons

6. Machine 1
(Thawing, Cleaning, Cutting)
Salaries of Workers :
Rate per day : P310.00
Thawing- 2 = P620.00
Cleaning- 4 = P1,240.00
Cutting- 3 = P930.00
= P 2,790.00 per day
= P 13,950.00 per week

7. Computations:
P 1,320,000.00 Tuna Supply
+ P 50,000.00 Shipping Fee
P 13,950.00 Salaries
= P 1,383,950.00 per week
Machine 1 Cost :
= P 10,000,000.00
= P 11,383,950.00

8. Machine 2
(Cooking, Sterilizing, Filling &
Oiling, Cooling)
Salaries of Workers :
Rate per day : P310.00
Cooking- 2 = P620.00
Filling &Oiling- 2 = P620.00
Cooling- 2 = P620.00
= P 1,860.00 per day
= P 9,300.00 per week

9. Raw Materials to be used in
Tuna
It will last for a year. It includes :
Pepper
Onion
Salt
Additives
(7 grams per can)x(125,000 cans)
= 875,000.00 grams per week

10. Computations
P 10,200.00 Raw Materials
+ P 9,300.00 Salaries
= P 19,500.00 per week
Machine 2 Cost :
= P 8, 220,000.00
= P 8,239,500.00

11. Machine 3
(Closing, Packaging, Packing)
Salaries of Workers :
Rate per day : P310.00
Closing- 2 = P620.00
Inspection (QC) 5 = P1,550.00
Packaging on can 2 = P620.00
Packing on box- 2 = P620.00
= P 3,410.00 per day
= P 17,050.00 per week

12. Printed Wrapper on Can :
Supplier : “ASPEN PAPER PRODUCTS
CORPORATION”
Dimension : 17.5cmx8cm
Length for 125,000cans : 71,768.37 ft
Width for 125,000cans : 32,808.40 ft
Cost per week =P 12,500.00

13. Box:
Supplier : “PRIME WORLDWIDE PAPER
PACKAGING CORPORATION”
Price : P 30.00 per box
500 boxes for 25,000 cans per day
Cost per day: =P 15,000.00
Cost per week: =P 75,000.00

14. Computations
P 75,000.00 Cost of Boxes
+ P 12,500.00 Cost of Wrappers
P 17,050.00 Salaries
= P 104,550.00 per week
Machine 3 Cost :
= P 8,024,000.00
= P 8,128550.00

15. Overhead (70%)
P 35,000.00 Light Expenses
+ P 10,500.00 Water Expenses
= P 45,500.00 per month
Overhead Cost per week:
= P 11,375.00

16. Total Computations
(per week)
Materials : P 1,467,700.00
Labor : P 40,300.00
Overhead : P 11,375.00
Total Cost = P 1,519,375.00 per week

17. Total Computations
(per month)
Materials : P 5,870,800.00
Labor : P 161,200.00
Overhead : P 45,500.00
Total Cost = P 6,077,500.00 per month

18. Machine’s Cost:
Machine1 : P 10,000,000.00
Machine2 : P 8,220,000.00
Machine3 : P 8,024,000.00
Total Cost =
P 26,244,000.00
Lifespan: 18 years

19. Advantages of Machines:
High production speed
Reduced product loss
Increased packing liquid absorption
Fill weight accuracy
Optimal speeds for maximum yield

20. Group:
Arriola, Marjorie Ann B.
Cueto, Anne Klein
 Lleva, Charlene
 Frane, Bea
 Laureles, Saimon Bryan
 de Chavez, Mark Jim
 Luis, Donna
 Rosal, Diane Gabrielle