Aspects of production and cost calculation are very important in a business activity that is oriented towards the sale of a product. Mekar Sari home industry does production separately in two places with a long distance, this is done for cost savings. The calculation of the cost of goods produced is not in accordance with the rules of cost accounting, which has an impact on the inaccurate policy making that is implemented. With the above problems, this study aims to determine the effect of the production process on the cost of goods produced at Home Industry Mekar Sari, Lemahdhuwur Village, Kwarasan District, Kebumen Regency. This research is a type of qualitative research, using a qualitative descriptive approach, meaning that the data collected is not in t he form of numbers but the data is in the form of interview scripts, field notes, pictures. Data sources were obtained using methods, observation, interviews, and documentation. The analysis used by researchers is data reduction, data presentation and conclusion drawing. Based on the results of the study, it shows that the production activities of the Lanting Bumbu Mekar Sari Home industry carry out their production activities including the type of production of Intermittent manufacturing, with the process u sing lay out, namely process lay out, production activities carried out based on the level of demand and availability of raw materials. With the level of production goes hand in hand with market demand, when market demand increases, lanting production also increases and vice versa. The calculation of the cost of production calculated using the company method is IDR 42,149,605 and according to the full costing method is IDR 48,507,675. This is because in the calculation of factory overhead costs the company does not take into account some costs into the cost of production such as maintenance costs, electricity costs, packaging costs which should be included in product overhead costs to determine the cost of production. This causes overhead costs to decrease a nd the cost of goods manufactured to be lower than it actually is
