This is a little different than the production calculations that mogansbeck posted, but I also use excel to track my inventory, as well as the individual cost for products. I figure I'd share an example of the latter, because as a small business, I initially struggled with breaking down costs.

As a preamble, my excel inventory book consists of sheets divided by type (buckles, webbing, fabric etc) and breaks down each item entered to provide a cost per unit (factoring in things like inbound shipping expenses). I also have four more columns that track the amount and dollar value of: A) what was started with, B) what was added to, C) what was used and D) what is left. Unfortunately that requires an inventory count at the end of the year, which is painful to say the least.

Using the cost per unit from the inventory, product sheets are created that have all the required info to build the product and calculate it's gross profit margins. Below is a sample that I whipped up to show how it's laid out. The numbers are just made up, but it gives you an idea of how the system works. There are some formulas (so you don't need to do math) that aren't visible, but they are all fairly basic to create once you understand excel. When the sheet is done, you can easily adjust numbers and it will correct itself. This is handy if material costs go up or down, or if you decide to charge more or less for the product.

Based on the image above, this particular product has the following info:

- Retails for $40 and wholesales for $21 (30% less)

- The most expensive variant is Ranger Green which costs $6.20 worth of material

- Based on a rate of 4 units/hr and hourly wage of $30, it costs $7.50 in labour

- This makes a total cost of $13.70 to produce, which yields a retail profit of $16.30 and a wholesale profit of $7.30