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For this situation, the calculation of total manufacturing cost is as follows: 1  Direct materials. 2  Add the total cost of materials purchases in the period to the cost of beginning inventory, and subtract the cost of ending inventory.3  The result is the cost of direct materials incurred during the period. 4  Direct labor. Direct materials. 2  Add the total cost of materials purchases in the period to the cost of beginning inventory, and subtract the cost of ending inventory. 3  The result is the cost of direct materials incurred during the period. 4  Direct labor.
Add together your total direct materials costs, your total direct labor costs and your total manufacturing overhead costs that you incurred during the period to determine your total product costs. Divide your result by the number of products you manufactured during the period to determine your product cost per unit.Using the numbers from the previous examples, add together $15,000, $3,200 and $5,000 to get $23,200 in total product costs.Assume you manufactured 200 bicycles during the same period. Divide $23,200 by $200 to get a product cost per unit of $116.roduct costs equal the sum of your direct materials costs, direct labor costs and manufacturing overhead costs. Using the actual costing method, you can determine your small businessâs overall product costs and product costs per unit based on the actual costs you incurred during a period.