Manufacturing P&L Template

- Chase Morrison from Profitwyse walks through a manufacturing P&L Excel template designed as a flexible starting point for building a custom financial model. It includes eight worksheets: six for planning (revenue, build plan, labor, headcount, overhead, and cost of goods) and two for variance analysis and monthly reviews. The objective is to link operational assumptions—production volumes, yields, labor rates, and overhead—to a complete P&L projection. - The revenue sheet models five sample products using assumed average selling prices (ASP) and unit sales forecasts typically provided by marketing. Users can set revenue either by ASP and volume or by total revenue and back-calculate units. The next section uses yield factors (for example, 95% or 75%) to determine start quantities and required direct labor hours, creating a foundation for production and labor cost planning. - Labor and headcount planning determine total work hours needed versus available hours. Using 366 calendar days, 254 workdays, and adjustments for vacation, holidays, and sick time, the model estimates that each employee provides about 2,000 to 2,035 productive hours annually. Comparing this to the 57,000 hours required for production shows a 5,000-hour shortfall covered by temporary labor. This quantifies staffing needs and resource constraints. - Direct labor rate and payroll costs are calculated per employee by factoring in base wages, a 5% pay increase, overtime at time-and-a-half, payroll taxes, and health insurance. The total annual cost of a direct employee averages around $58,000, resulting in an effective loaded labor rate of approximately $28.47 per hour. Aggregating 25 employees yields about $1.5 million in direct labor plus $192,000 in contract labor, forming a $1.6 million total direct labor cost input to COGS. - The cost of goods and overhead sheets consolidate all cost drivers into a full manufacturing cost analysis, adding roughly $6.9 million in direct materials and $1.7 million in factory overhead. The combined $10.2 million in total production cost ties into the P&L worksheet, producing an estimated $7.7 million gross profit. The template concludes with example variance reports showing how to track scrap, yield, labor, and overhead deviations to analyze monthly performance. The video includes practical examples and offers downloadable templates to help manufacturers customize and implement their own manufacturing P&L models effectively. Get a copy here: https://bit.ly/4dyqFwV 0:00 Introduction 0:54 Sales Plan Worksheet with Revenue Plan description 2:10 Sales Plan Worksheet with Build Plan description 3:50 Headcount Plan Worksheet with description of how to plan Direct Labor 6:29 Labor Rate Calc Worksheet with description of how to calculate a Direct Labor hour rate 10:12 Back to Headcount Plan Worksheet to go over how to compute Total Cost of Production 11:56 Overhead Plan Worksheet displaying example of one overhead cost center budget 12:56 COGS and Variance Plan Worksheet with detail on computing monthly variance plan (Scrap, Absorption, Efficiency, etc), COGS plan calculation and Gross Profit Plan 15:00 P&L Worksheet is where everything gets pulled together into the Manufacturing P&L 15:30 Monthly Example Worksheets showing how to compute actuals to plan variances for Direct Labor and Overhead.