Akuntansi Biaya
Page 1 of 5
UJIAN TENGAH SEMESTER
SEMESTER GASAL 2011/2012
Dosen : Paralel
PROBLEM 1 (45%)
Cedarwood Inc, is a furniture company which specializes in manufacturing all types of furniture from
Cedarwood. The company produces furniture based on specification from customer, and order from
one customer is different from another customer. Based on this situation, the company uses job
order costing to accumulate its production costs. Company Work in Pocess Inventory at November
1st, 2011 were as follows:
Transactions that the company made during November 2011 were as follows :
1. Purchased Rp 200,000,000 of Raw Materials, 60% of them were paid in cash, while the rest
will be paid next month (using perpetual method)
2. Issued raw material from the warehouse as follows :
3.
Page 2 of 5
MR-Nov-06 Rp 75,000,000 Job - 33
MR-Nov-07 Rp 25,000,000 -
Required
1. Based on information provided, prepare the necessary journals for Cedarwood, Inc
2. Calculate the amount of Ending WIP Inventory, F/G Inventory and the actual COGS for
Cedarwood, Inc.
3. Prepare Cedarwood’s Income Statement for November 2011
Page 3 of 5
PROBLEM 2 (30%)
Frito Lay, Inc., manufactures convenience foods, including potato chips and corn chips. Production of
corn chips occurs in four departments: Cleaning, Mixing, Cooking, and Drying and Packaging.
Consider the Drying and Packaging Department, where direct materials (packaging) are added at the
end of the process. Conversion costs are added evenly during the process. The accounting records of
a Frito-Lay plant provide the following information for corn chips in its Drying and Packaging
Department during a weekly period (week 37):
Required:
a. Compute equivalent units for transferred in, direct materials and conversion cost using the
(a) FIFO method and (b) Average method.
b. Summarize the total Drying and Packaging Department costs for week 37, and assign total
costs to units completed and transferred out and to units in ending work in process using
the FIFO method.
c. Prepare journal entries for transfers from Drying and Packaging Department to Finished
Goods.
PROBLEM 3 (15%)
Valley Corporation is a company which produces uniforms for Elementary School. The table below
explains information regarding Standard Production Costs in Valley:
Page 4 of 5
The total pre-determined factory overhead costs will be Rp 500.000.000, and it will be charged to
each products using direct labor hours as an allocation base. The budgeted direct labor hours used
are 250.000 hours.
The actual uniforms produced were 15.000 units, and it requires 82.500 direct labor hours and
42.000 meter material to manufacture all of those uniforms.
The company bought 42.000 meter material with the total costs of Rp 882.000.000
The total amount of direct labor costs paid for producing uniforms were Rp 1.237.500.000
The total electricity expenses paid for 2010 were Rp 65.000.000
The total maintenance expenses for machine and factory building during 2010 were Rp
15.000.000
The depreciation expenses for machinery and factory building for 2010 were Rp 31.000.000
The total indirect labor paid for 2010 were Rp 30.000.000
The total Indirect Material used is Rp 29.000.000
Required:
1. Compute the total production cost for 15.000 units using Standard Costing and Normal
Costing.
2. Prepare all the journal entry for standard costing.
PROBLEM 4 (10%)
Burwood Co manufactured bicycle for children. In allocating its manufacturing overhead
cost, setup cost, there two possibility to use number of setups or/and set up hours as its
driver. Below is the output regression of manufacturing overhead costs based on (a)
number of setups and (b) setups hours taken from the observation in the Burwood Co.
during 2010.
SUMMARY OUTPUT X Y
R Square 0,85 0,47
Standard Error 27.274 51.385
(a)
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Setups cost
(b)
Setups cost
Required:
1. Write down the equation for each model : (a) number of setups and (b) setup hours
2. Based on your analysis, which cost driver should be used for Setup cost? Explain.
3. It is possible for Burwood Co. to use both of the drivers in allocating its Setup cost? Explain.
JAWABAN
Nomor 1
A Account Debit Credit
1 Raw Material Inventory 200.000.000
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Work in Process Inventory - Job 31 45.000.000
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6 Prepaid Rent 12.000.000
9 Machine 50.000.000
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12 Finished Goods Inventory - Job 23 89.000.000
COGS 2.000.000
Sales 180.000.000
Sales 115.000.000
Sales 75.000.000
Page 9 of 5
125.000.000
Sales 155.000.000
C
CEDARWOOD, Inc.
Income Statement
For the Period Ended, November 2011
Revenue 650.000.000
COGS (460.000.000)
Gross Margin 190.000.000
Selling and Adm. Expense
Marketing Exp. 45.000.000
Administrative Exp. 75.000.000
Advertising Exp. 3.000.000
Total Selling and Adm.
Exp. 123.000.000
Operating Income (EBIT) 67.000.000
Page 10 of 5
Nomor 2
A. FIFO
Equivalent Units
Flow of Production
Physical TIC DM CC
Average
Equivalent Units
Flow of Production
Physical TIC DM CC
Page 11 of 5
B.
TPC TIC DM CC
WIP, Beg
Assignments of Costs
Completed & Transferred out
Page 12 of 5
C Account Debit Credit
Raw Material Inventory 25.200
Cash 25.200
Cash 38.400
NOMOR 3
Total Production Costs
1. Standard Costing
Raw Material : 15.000 x 3 x 20.000 = 900.000.000
Direct Labor : 15.000 x 5 x 16.000 = 1.200.000.000
MOH Rate : 2000 / Direct Labor hours
MOH Standard : 15.000 x 5 x 2.000 = 150.000.000
Total cost : 2.250.000.000
Normal Costing
Raw Material (Actual) = 882.000.000
Direct Labor = 1.237.500.000
MOH rate : 2000 / Direct Labor Hours
MOH Normal : budgeted rate x actual = 2000 X 82.500 = 165.000.000
Total Cost : 2.284.500.000
Cash 882.000.000
Page 13 of 5
Raw Material Inventory 882.000.000
Cash 1.237.500.000
Cash 139.000.000
COGS 20.000.000
NOMOR 4
a. Tidak bisa dikerjakan
b. Number of setups menjadi pilihan karena memiliki nilai r square yang lebih besar dan deviasi
lebih rendah
c. Tidak, Burwood Co. Harus memilih salah satu untuk mengalokasikan setup cost, supaya hasil
yang akurat bisa didapatkan.
Page 14 of 5
MOJAKOE
MOdul JAwaban KOEliah
Akuntansi Biaya
UTS Semester Gasal 2014/2015
• Competence:
Each
practitioner
has
a
responsibility
to:
maintain
an
appropriate
level
of
professional
expertise
by
continually
knowledge
and
skills;
perform
professional
duties
in
accordance
with
relevant
laws,
regulations
and
technical
standards;
provide
decision
support
information
and
recommendation
that
are
accurate,
clear,
concise
and
timely;
and
recognize
and
communicate
professional
limitations
or
other
constraints
that
would
preclude
responsible
judgment
or
successful
performance
of
an
activity.
• Confidentiality:
Each
practitioner
has
a
responsibility
to
keep
information
confidential,
inform
relevant
parties
regarding
appropriate
use
of
confidential
information,
and
refrain
from
using
confidential
information
for
unethical
or
illegal
advantage
• Integrity:
Each
practitioner
has
a
responsibility
to
mitigate
actual
conflicts
of
interest,
refrain
from
engaging
in
any
conduct
that
would
prejudice
carrying
out
duties
ethically,
and
abstain
from
engaging
in
or
supporting
any
activity
that
might
discredit
the
profession.
• Credibility:
communicate
information
fairly
and
objectively,
disclose
all
relevant
information
and
disclose
delays
or
deficiencies
in
information,
timeliness,
processing
or
internal
controls
in
conformance
with
organization
policy
and/or
applicable
law.
1.b
When
faced
with
ethical
issues,
you
should
follow
your
organization’s
established
policies
on
the
resolution
of
such
conflict.
If
these
policies
do
not
resolve
the
ethical
conflict,
you
should
consider
the
following
courses
of
action:
• Present
the
issue
to
the
next
level.
If
you
cannot
achieve
a
satisfactory
resolution,
submit
the
issue
to
the
next
management
level.
If
your
immediate
superior
is
the
chief
executive
officer
or
equivalent,
the
acceptable
reviewing
authority
may
be
a
group
such
as
the
audit
committee,
executive
committee,
board
of
directors,
board
of
trustees,
or
owners.
Contact
with
levels
above
the
immediate
superior
should
be
initiated
only
with
your
superior’s
knowledge,
assuming
he
or
she
is
not
involved.
Communication
of
such
problems
to
authorities
or
individuals
not
employed
or
engaged
by
the
organization
is
not
considered
appropriate,
unless
you
believe
there
is
a
clear
violation
of
the
law.
• Clarify
relevant
ethical
issues
by
initiating
a
confidential
discussion
with
an
IMA
Ethics
Counselor
or
other
impartial
advisor
to
obtain
a
better
understanding
of
possible
courses
of
action.
• Consult
your
own
attorney
as
to
legal
obligations
and
rights
concerning
the
ethical
conflicts.
= $378,000 + $480,000
= $858,000
= $1,270,200
2.d.
COGM Schedule
FOH
$ 1,617,600
2.e.
COGS Schedule
COGM $ 1,617,600
COGS 1,647,600
2.f.
Income Statement
Sales $ 2,536,600
COGS ($ 1,647,600)
Operating Cost
General exprenses:
Selling Expenses:
$ !,!"#,!""
Cost/
Unit
=
= $16,176
!"",!!!
3.a
!"",!!!
COGS/
Unit
=
= $200
!,!!!
!",!!!
Commissions/
Unit
=
= $ 18
!,!!!
= $242,000 + $218Q
b. Estimated Cost
= $242,000 + $ 654,000
= $ 896,000
c. Solution Store used a cost estimation method based on the units sold that period.
4. 1.
Elegant Tailor
General Journal
September 2014
Cash Rp20,000,000
Sales Rp80,000,000
COGS Rp40,875,000
COGS Rp3,000,000
Note: All budgeted cost will be adjusted to actual cost during the end of period.
Equivalent Units
Equivalent Units
Physical
TIC
DM
CC
Units
Completion
of
beg
3,000
-‐
3,000
1,800
WIP
TIC
DM
CC
Total
Cost
of
beg.
WIP
Rp77,000
Rp18,500
Rp35,720
Rp131,220
Inventory
Completion
of
Rp0
Rp6,000
Rp10,440
Rp16,440
Beg
WIP
Inventory
Cost
of
units
Rp120,750
Rp14,000
Rp40,600
Rp175,350
transferred
&
completed
Total
Cost
of
Rp197,750
Rp38,500
Rp86,760
Rp323,010
Goods
finished
Cost
of
ending
Rp17,250
Rp2,000
Rp4,640
Rp23,890
WIP
Total
Cost
Rp215,000
Rp40,500
Rp91,400
Rp346,900
Accounted
For
5.3.
AKUNTANSI BIAYA
Problem 1 (30%)
Stylish Company has two departments :Cutting and Sewing. Each Department has direct cost
category (direct materials) and indirect cost category (conversion cost). Our Main focus is in
Cutting Department.
Two Kinds of Materials are being added in the Cutting Department. The first Material (A) are
added at the beginning of the process, while the second material(B) are added when the
production reach 70% stages. Conversion costs are added evenly during cutting operations.
Spoiled units are detected upon inspection at the 70% stage, right before the second material
(B) are added.
Problem 2 (25%)
PT. Aang & Katara ( PT.AK) uses job costing system at its North Pole plant. The plant has a
Production Department and a Packaging Department. PT AK uses normal costing with two
direct cost categories(direct material and direct labor) and two manufacturing overhead cost
pools (The Production Department, with direct labor-hour as the allocation base, and the
Packaging Department, with Direct Material cost as the allocation base). The 2010 Budget
for the plant is as follows :
Production Packaging
Department Department
MOH Costs Rp. 24.000.000 Rp. 20.000.000
Direct Material Costs Rp. 200.000.000 Rp. 30.000.000
Direct Labor Costs Rp. 80.000.000 Rp. 7.500.000
Direct Labor Hour 40.000 5.000
Required:
1. Calculate the budgeted overhead rate in the production department and Packaging
department.
2. During the month of September, the job cost record of job #W135 shows the following:
Production Packaging
Department Department
Direct Material Used Rp. 19.400.000 Rp. 2.680.000
Direct Labor Costs Rp. 8.275.000 Rp. 705.000
Direct Labor Hour 3.850 475
Compute the total manufacturing overhead to job #W135
3. What is the total cost of job #W135 and its cost per unit, Job #W135 consisted of 3,000
units.
4. Assuming that the actual MOH incurred for Job #W135 in the month of September is Rp
4.500.000; compute the under or over allocated MOH and prepare the necessary journal
entry to record the transaction.
5. Further assume that even if the production process had been running at its most efficient
level, PTAK expects defects to be 10% of goods under production, including the defective
products. The production process of Job #W135 had actually rejects 500 units of defective
products, and these defects have no market value. Prepare Journal entries and calculate the
unit cost of the 3.000 good units of job #W135 under the following independent situations:
a. The defect is attributable only to job #W135
b. The defect is a characteristic of the production process and not attributable to
specific job.
Problem 3 (25%)
Amazone Company manufactures convinience foods, including potato chips and corn chips.
Production of corn chips occurs in four departments, cleaning, mixing, cooking, and drying
and packaging. Consider the drying and packaging department, where the direct materials
(packaging) are added at the end of the process. Conversion costs are added evenly during the
process. The company uses FIFO method for process costing and there is no spoilage
incurred during the production process.
Page |3 Semester Ganjil 2011/2012
Presented By: SPA-Accounting Study Division Mojakoe Akuntansi Biaya
The Accounting records of Amazone plant provide the following information for corn chips
in its Drying and Packaging Department during a weekly period (week 37):
Required
For the week 37:
a. Compute the Equivalent cases for each cost strategy
b. Compute the cost per equivalent case
c. Determine the total cost of the cases transferred out during week 37
d. Determine the cost of the week 37 work in process inventory
Problem 4 (20%)
The following items (in million) pertain to Chen Corporation:
Balance as of Jan. 1, 2009 Balance as of Dec.31, 2009
Direct Materials $30 $5
Work In Process $10 $2
Finished Goods $40 $12
Accounts Receivable $50 $30
Accounts Payable $ 40 $20
Total
b.) Production Cost DM A DM B DM C
Assignment of Costs
Completed and Transferred out during
current period (before normal spoilage) 419.100.000 143.000.000 60.500.000 215.600.000
c.)
WIP-Sewing 448.492.000
WIP-Cutting 448.492.000
d.)
Problem 2
1. Production Department Budgeted OH Rate
∑
=
∑
. .
= = 600/ℎ
.
b. Material 3.516.667
MOH control 2,343,778*
WIP Job #W135 5.859.445*
*(500-300) x cost per unit ** 500 x cost per unit.
Problem 3
a.)
Equivalent Unit
Flow of Production Physical Unit
TIC DM CC
WIP Beginning
1.250
Transferred in during current
period 5.000
To Account for
6.250
Completed & Transferred out
during current period
Total
Production
b.) Cost TIC DM CC
started and
completed
Started and Completed 127.432.258 75.200.000 19.200.000 33.032.258 *cost per unit
Total Units completed and
Transferred out during current
period 173.476.774 104.120.000 25.200.000 44.156.774
Total Cost during week 37 =Rp.
173.476.774
wip
ending*cost
WIP ending 22.103.226 18.800.000 - 3.303.226 per unit
Problem 4
a. Total Prime costs = DM Cost + DL cost
=(DM Beg+DM Purchased-DM Ending)+DL Cost
=(30+80-5)+40
=$145
Conversion Costs =DL Cost + MOH Cost
=DL Cost +(Plant Utilities+Indirect Manufacturing Labor +
MOJAKOE
AKUNTANSI BIAYA
UTS AKUNTANSI BIAYA 2012/2013
Accounting Study Division
Question 1 (10%)
Adi Nugraha was recently hired as assistant controller of PT Godong Ijo, which processes chemicals for use
in fertilizers. Adi was selected for this position because of his past experience in the chemical processing
field. During his first month on the job, Adi made a point of getting to know the people responsible for the
plant operations and learning how things are done at PT Godong Ijo.
During a conversation with the plant supervisor, Adi asked about the company procedures for handling
toxic waste materials. The plant supervisor replied that he was not involved with the disposal of wastes
and suggested that Adi might be wise to ignore this issue. This response strengthened Adi’s determination
to probe this area further to be sure that the company was not vulnerable to litigation.
Upon further investigation, Adi discovered evidence that PT Godong Ijo was using a nearby residential
landfill to dump toxic wastes. It appeared that some members of PT Godong Ijo’s management team were
aware of this situation and may have been involved in arranging for this dumping; however, Adi was
unable to determine whether his superior, the controller, was involved.
Uncertain how he should proceed, Adi began to consider his options by outlining the following three
alternative courses of action.
Required:
a. Discuss why Adi has an ethical responsibility to take some action in the matter of PT Godong Ijo
and the dumping of toxic wastes. Refer to the specific standards of IMA Statement of Ethical
Professional Practice to support your answer. ( 4 points )
b. For each of the three alternative courses of action that Adi has outlined, explain whether or not
the action is appropriate. Use the IMA Statement of Ethical Professional Practice to support your
answer ( 3 points )
c. Without prejudice to your answer in Question (b), assume that Adi sought the advice of his
superior, the controller, and discovered that the controller was involved in the dumping of toxic
wastes. Using IMA Statement of Ethical Professional Practice to support your answer, describe the
steps that Adi should take to resolve this situation. ( 3 points )
Question 2 (20%)
PT Segar Abadi manufactures fan with specifications as presented by the picture on the side. Here is data
for the fan’s production costs (in Rp) for September 2012.
Material Used
Pelindung Depan 85,000,000
Baling-baling 75,000,000
Sekrup 2,000,000
Pelindung Bawah 81,000,000
Motor 210,000,000
Rumah Mekanik 70,000,000
Pipa Pengatur ketinggian 30,000,000
Pipa Landasan 40,000,000
Penutup Landasan 2,100,000
Penghubung 2,500,000
Landasan/ fondasi 45,000,000
Others
Depreciation of Prod. Machine 100,000,000
Utilities 20,000,000
Security System 4,500,000
Maintenance 30,000,000
In addition, below is the value of the fan’s inventory for both work-in-progress and finished goods ( in Rp)
at the beginning and the end of September 2012
- 1 - Sept 30 - Sept
WIP ( Rp ) 30,000,000 21,000,000
F/G ( Rp ) 245,000,000 300,000,000
Required :
Kindly form a Cost of Goods Sold Report for September 2012 ( Notes : For materials used, you need to
separate direct material from indirect materials)
Question 3 (15%)
3A. Katty Poni opened a re-bonding salon in a new shopping mall. She had anticipated that the costs for the
re-bonding service would be primarily fixed, but she found that the re-bonding costs increased with the
number of visits. Costs for this service over the past 12 months are as follows :
a. Calculate the cost formula for re-bonding services using the high-low method. ( 5 points)
b. Predict the cost of re-bonding services for January 20X2 for 110 visits using the formula you have
got in question A. ( 3 points )
3B. The cost of the personnel department at the Mumbai Company has always been charged to the
production departments based upon number of employees. Recently, opinions gathered from the
department managers indicated that the number of new hires might also be a predictor of personnel
costs to be assigned. Total personnel department costs are €120.000.
Required:
Using the above data, prepare a report that contrasts the different amounts of personnel department
cost that would be allocated to each of the production departments if the cost driver used is
Question 4 (5%)
Question 5 (20%)
Anton Cahyadi is an advertising consultant. Recently, he has been working with his accountant to develop
a formal accounting system. His accountant has suggested the use of a job order costing system to simplify
costing procedures. During September, Anton and his staff working on jobs for the following companies :
Job for PT Burangrang and PT Red Sky has been completed and recognized as revenue, but not for PT
Tarantula. Material purchased for the month is Rp 70.000.000. Anton is able to trace direct material to
each job because most of the cost associated with material related to photography and duplicating. The
accountant has told Anton that a reasonable charge for overhead, based on previous information is Rp
165.000 per direct labor hour. The normal labor cost per hour is Rp 135.000. The Actual overhead for the
month is Rp 120.000.000.
Required:
Based on the above information:
a. Prepare the journal entries related for PT Burangrang (The ads for PT Burangrang has a budgeted
material purchased Rp 15.000.000; PT Burangrang consumed 5% of the total actual MOH for the
month. The company write off any under/over allocated to COGS account).
b. Determine the total balance for WIP and Finished Good for the month.
c. Calculate whether there is under/over allocated for the company’s monthly overhead. The
company write off any under/over allocated to COGS account.
d. If Anton has been charging Rp 7.800.000, per ad developed, what was his net income for the
month?
e. Do you have any suggestion for Anton about the way he bills his client for developing ads? (hints :
analyzed the probability for each job)
Question 6 (30%)
PT DMD manufactures monitor for laptops. Each monitor passes through the assembly department and
the testing department. When the assembly department finishes work on each monitor, it is immediately
transferred to testing department. As each unit is completed in testing department, it is immediately
transferred to Finished Goods.
Other information:
The process costing system at PT DMD has a single direct cost category (direct material) and a
single indirect cost category (conversion cost).
PT DMD uses the FIFO method of process costing for assembly department, and weighted average
method of process costing for testing department.
In the assembly department, direct materials are added at the beginning of the process. While in
the testing department, direct materials area added when the testing department process is 85%
complete.
Conversion costs are added evenly both in the assembly department and in the testing
department.
Data for the assembly department and testing department during the month of October 2012 area as
follows:
Required:
1. Compute the equivalent units for each cost category in assembly department and testing
department.
2. Explain the degree of completion of Direct Material used in calculation of equivalent units as in no.
1 above.
3. Calculate the ending balance of Work in Process for both departments as per 31 October 2012.
4. Prepare journal entries for all October 2012 transactions affecting Work in Process – Assembly and
Work in Process – Testing.
5. Calculate the unit cost of the product (monitor for laptops).
ANSWER
Question 1
a. Adi has an ethical responsibility to take some action in the matter of PT Godong Ijo and the
dumping of toxic because it involves some values according to IMA Statement of Ethical
Professional Practice such as :
Competence
Adi was selected as an assistant controller because of his past experience in the chemical
processing field which means he has some competence in this subject.
Confidentially
The conversation between Adi and the plant supervisor should be keep confidential.
Integrity
It involves Adi’s integrity to perform duties ethically especially when Adi was suggested to
ignore this issue by the plant supervisor.
Credibility
Adi and others PT Godong Ijo members must provide credible evidence that some
management team were involved in arranging for the dumping.
b. Adi’s alternative courses of action analysis according to IMA Statement of Ethical Professional
Practice :
Seek the advice of his superior is appropriate except when it appears that the superior is
involved. In this case, Adi action is not appropriate because Adi was unable to determine
whether his superior was involved.
Release information to newspapers is clearly an inappropriate. Adi must keep the
information confidential unless he can prove some credible evidences.
Discuss with outside member is inappropriate because Adi must keep the information
confidential. It is better for Adi to discuss the issue with the next level supervisor, such as
the CEO.
c. The steps Adi should take :
Discuss the issue with the next level supervisor, for example CEO and audit committee.
Clarify relevant ethical issues by initiating a confidential discussion with an IMA ethics
Counselor or other impartial advisor.
Consult his own attorney as to legal obligations and tights concerning the ethical conflict.
Question 2
PT Segar Abadi
Cost of Goods Sold Report
Direct Materials :
Pelindung depan 85.000.000
Baling-baling 75.000.000
Pelindung Bawah 81.000.000
Motor 210.000.000
Rumah Mekanik 70.000.000
Pipa pengatur ketinggian 30.000.000
Pipa Landasan 40.000.000
Landasan 45.000.000
Total direct materials : 636.000.000
Direct Manufacturing Labor 25.000.000
Manufacturing Overhead Cost :
Sekrup 2.000.000
Penutup Landasan 2.100.000
Penghubung 2.500.000
Security 6.000.000
Production Supervisor 7.000.000
Depreciation of Prod. Machine 100.000.000
Utilities 20.000.000
Security System 4.500.000
Maintenance 30.000.000 174.100.000
Manufacturing cost incurred during Sept 2012 835.100.000
Beginning Work in Process Inventory, Sept 1, 2012 30.000.000
Total Manufacturing Cost to account for 865.100.000
Ending Work In Process Inventory, Sept 30, 2012 21.000.000
Cost of Goods Manufactured 844.100.000
Beginning finished goods inventory, Sept 1, 2012 245.000.000
Cost of Goods available for use 1.089.100.000
Ending finished goods inventory, Sept 31, 2012 300.000.000
Cost of Goods Sold 789.100.000
Question 3
3A.
a. Slope =
= = 164000
Y = 164000 X + C
26.280.000 = 164000 x 70 + C
C = 14.800.000
3B.
a. Number of employees
Cost of Department A = 300 / (300 + 250 + 50) x €120.000 = €60.000
Cost of Department B = 250 / (300 + 250 + 50) x €120.000 = €50.000
Cost of Department C = 50 / (300 + 250 + 50) x €120.000 = €10.000
c. Mumbai Company should use the number of employees as cost driver to estimate the cost
because the number of employees is more economic plausibility to the cost than the number of
new hires.
Question 4
b. After all of the variances has been calculated, they need to be closed. If the total amount of
variances is not material, then, those variances can be closed to COGS account. However, if those
total variances are big, then the variances should be divided proportionately to WIP inventory,
finished goods inventory, and COGS accounts. How to report the variances in the balance sheet
and income statement is the same as if company makes the journal using normal costing.
Question 5
Journal entries:
= 52.650.000 + 36.272.727
= Rp 88.922.727 87.300.000
COGS PT Burangrang = 25.500.000
e. Anton should consider time used to produce ads in billing his customer. Time consumed job
should be more expensive than others.
Question 6
1. Equivalent Unit
Equivalent Units
Physical
Flow of Production Tranferred-In Direct Conversion
Units
Cost Material Cost
Assembly Department
Work in Process, October 1 8.000
Started during October 2012 40.000
To account for 48.000
Completed and transferred out during current period
From beginning work in process 8.000
[8.000 x 0% ; 8.000 x (100% - 60%)] 0 3.200
Started and completed 34.000
[40.000 x 100% ; 40.000 x 100%] 34.000 34.000
Work in process ending 6.000
[6.000 x 100% ; 6.000 x 80%] asdasd 6.000 4.800
Accounted for 48.000
Equivalent units of work done in October 2012 40.000 42.000
Testing Department
Work in Process, October 1 15.000
Transferred in October 2012
42.000
(53.000 + 4.000 – 15.000)
To account for 57.000
Completed and transferred out during current period 53.000 53.000 53.000 53.000
Work in process ending 4.000
[4.000 x 100% ; 4.000 x 0% ; 4.000 x 70%] aasdas 4.000 asdas- 2.800
Accounted for 57.000
Equivalent units of work done in October 2012 57.000 53.000 55.800
In both Assembly and Testing Department, Degree of completion of Direct material is 100%
because the materials are added at to the process one time, whether it is on the beginning of the
process or when the process is 85% complete.
Total
Transferred-In Direct
Production Conversion Cost
Cost Material
Cost
Assembly Department
Work in process beginning $ 3.250.000 $ 2.400.000 $ 850.000
Cost added in October 2012 18.500.000 12.000.000 6.500.000
Total costs to account for $ 21.750.000 14.400.000 $ 7.350.000
Testing Department
Work in process beginning $ 7.830.000 $ 6.330.000 $- $ 1.500.000
Cost added in October 2012
(( 34.000 x 300 + 37.200 x 154,76 +2.400.000 + 45.687.072 19.207.143 21.465.000 8.265.000
850.000);21.465.000; 8.265.000)
Total costs to account for $ 53.517.072 $ 25.537.143 $ 21.465.000 $ 9.765.000
4. Journal Entries
Debit side
Direct materials used during August: Type 1 $80,000 and Type 2 $31,200
Credit side
*Supplementary records disclosed direct material cost of $30,000 and conversion cost $14,600.
Conversations with manufacturing personnel revealed that the ending work in process was 80%
complete.
Required:
1. Compute the cost per equivalent unit for each type of cost assuming the company uses FIFO
method for process costing.
2. Calculate the cost of goods completed during August, and prepare the appropriate journal
entry to record completed production.
3. Determine the cost of the August 31 work-in-process inventory.
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The company has chosen machine hours to allocate the factory overhead rate. Total budgeted FOH
for 2013 was $200,000, while the budgeted machine hours used for 2013 was 100,000 machine
hours. The factory overhead will be applied/allocated to the product at a ratio of 2 Machine hour per
unit.
1. Prepare the necessary journal to record MFOH related transactions using (a) actual cost, (b)
normal cost, and (c) standard cost
2. Prepare the necessary journal to close the MFOH over or under applied using those three
methods, assuming that the amount is not material.
Cinnabar Company has provided the following data concerning its operation for the year ended
December 31, 20A:
Sales $1,100,000
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Cash $170,000
Advertising $8,400
Required: Prepare the Cost of Goods Manufactured and Cost of Good Sold Statement for the
Year
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Regul Company uses job cost accounting system. Manufacturing overhead is applied to
production at a predetermined rate of 150% of direct labor cost. Any over-or underapplied MOH
is closed to the COGS account at the end of each month. Additional information is available as
follows:
Job 101 was the only job in process at January 31, with accumulated costs as follows:
Jobs 102, 103, and 104 were started during February. Direct materials requisitions for February
totaled $26,000. Direct labor cost of $20,000 was incurred for February. Actual Manufacturing
Overhead for February was $32,000. The only job still in process on February 28 was job 104,
with costs of $2,800 for direct materials and $1,800 for direct labor.
Required:
True Sound is a company which manufactures and sells computer speakers for multimedia
systems. The high quality sound is the result of a signal-processing chip designed by True Sound
Engineers. True Sound’s production consist only one production department, which is assembly
department. The company buys and assembles four basic components (speaker cone, magnet,
plastic housing, and patented amplifier) into a finished speaker. Beginning WIP inventory at
October 1st 2013 consists of 8,000 unit of speaker which is already reached 70% of completion.
During the month of October 2013, the company put another 25,000 units of speaker to be
produced during the month. Ending WIP inventory at October 31st, 2013 consists of 5,000 unit of
speaker (40% of completion) and 3,000 units of speaker (80% completion)
All of the speaker cone will be added at the beginning of the production process, while all of the
magnet will be added when the production process reach 30% completion, all plastic housing
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will be added when the production process reach 65% completion, while all patented amplifier
will be added when the production process reach 85% of completion. Conversion process
incurred evenly throughout the production process.
Magnet $62,000
Patented Amplifier 0
Magnet $103,000
Based on the following information (a) prepare a production cost report for the month of
October 2013, using a weighted average method and (b) prepare the necessary journals needed
to record transaction during the month of October 2013 (assuming the finished product is
transferred to F/G inventory warehouse.
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JAWABAN
Total
Direct Direct Conversion
Production
Materials 1 Materials 2 Cost
cost
Work-in-Process, beginning 44,600 30,000 0 14,600
Cost added in current period 162,600 80,000 31,200 51,400
Total costs to account for 207,200 110,000 31,200 66,000
(a) Under FIFO method, the equivalent-unit calculations for each cost category focus
on equivalent units of work done in the current period (August) only. Thus,
beginning WIP inventory equivalent unit is the remaining work that has to be done
in August. Since type 1 material are added at the start of the process, none of type
1 cost is added in work done in August.
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Total
Direct Direct Conversion
Production
Materials 1 Materials 2 Cost
cost
Assignment of cost:
Completed and transferred out ( 1400 units)
Work in process, beginning (600 units) 44,600 30,000 - 14,600
(b)
Costs added to beginning WIP in current period 17,241 - 7,800 9,441
Total from beginning inventory 61,841
Started and completed (800 units) 66,935 35,556 10,400 20,980
Total costs completed 128,776
Work in process, ending (1000 units) 78,424 44,444 13,000 20,980
Total costs accounted for 207,200 110,000 31,200 66,000
(b) Cost added to beginning WIP in current period equals cost per equivalent unit of
work done in current period times equivalent units of work done in current period
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Cinnabar Company
Schedule of Cost of Goods Sold
For the Year Ended December 31, 20A
Beginning Finished Good Inventory, January 1, 20A 37,500
Cost of Goods Manufactured 843,900
Cost of Goods Available for Sale 881,400
Ending Finished Good Inventory, December 31, 20A (70,000)
Cost of Goods Sold 811,400
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c. Journal
Work in Process - Inventory 30000
Manufacturing Overhead Allocated 30000
Work in Process -Inventory 26000
Materials Control 26000
Work in Process -Inventory 20000
Cash Control 20000
Manufacturing Overhead Control 32000
Cash Control 32000
COGS 2,000
Manufacturing Overhead Allocated 30,000
Manufacturing Overhead Control 32,000
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1. Step 1 Explained.
It was mentioned in the question paper when is a certain direct material added in the
production process. In this case, plastic housing, for example, is added when
production process reach 65% completion, thus, in a 40% completed product there is
0 equivalent unit of plastic housing. While for the conversion costs, the costs are
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incurred throughout the production process, thus, in a 40% completed product, the
equivalent unit equals completion degree times physical units.
2. Step 2 Explained.
All costs to be accounted for are mentioned in the question paper.
3. Step 3 Explained.
Cost per equivalent unit can be obtained by dividing total cost incurred to date of a
certain cost and the equivalent unit of work done
4. Step 4 Explained.
Cost assigned can be obtained by multiplying cost per equivalent unit and its
equivalent unit. In this case, cost assigned to units transferred out of speaker cone is
its cost per equivalent unit ($12) times its equivalent unit transferred out (25000).
Journal
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MOJAKOE
MOdul JAwaban KOEliah
Akuntansi Biaya
UAS Semester Ganjil 2014/2015
Official partners:
Official Partners: Official media
Official Media partner:
Partner:
Dilarang memperbanyak MOJAKOE ini tanpa seijin SPA FEB UI
JAWABAN UAS AB
2014/2015
PROBLEM 1
Part A
Part B
PROBLEM 2
60.500.000
Slicing dept
35% sliced FG - sliced
137.500.000
Crushing dept
28%crushed FG- crushed
300 ton
42.000.000
Pineapples juicing dept
FG- juiced
27% juice
Joint cost = 715.000.000
9.050.000
10% by-product
Animal feed
feed dept
Crushed
Sliced pineapple Pineapple juice total
pineapple
Final sales value
756,000,000 554,400,000 272,523,364.49 1,582,923,364
Deduct separable
cost 60,500,000 137,500,000 42,000,000 240,000,000
NRV at split off
695,500,000 416,900,000 230,523,364 1,342,923,364
Weighted 52% 31% 17% 100%
382,728,094.24
joint cost allocated
52%(775.000.000- 229,416,739.74 126,855,166.02 739,000,000
(30.000X1200))
Revenue
756,000,000 554,400,000 272,523,364 1,582,923,364
COGS
Joint cost
382,728,094.24 229,416,739.74 126,855,166.02 739,000,000.00
Separable cost
60,500,000 137,500,000 42,000,000 240,000,000
Production cost
443,228,094.24 366,916,739.74 168,855,166.02 979,000,000.00
COGS
(443,228,094.24) (366,916,739.74) (168,855,166.02) (979,000,000.00)
Profit
312,771,905.76 187,483,260.26 103,668,198.47 603,923,364.49
Profit margin 41.37% 33.82% 38.04% 38.15%
PROBLEM 3
PART A
a. EOQ =
PART B
a. Record DM purchase
Material Inventory Control 546.000
AP Control 546.000
b. Record CC Incured
CC Control 399.000
Various Account 399.000
e. CC allocated 380.000
COGS 19.000
CC control 399.000
PROBLEM 4
1. Allocation the support departments’ costs to the main department using the direct
method
Allocation the support departments’ costs to the main department using the step-down
method
PROBLEM 5
1. MOH allocated to:
a) Scientific = unit produced per year of scientific x total MOH
unit product per year of two products
= 40.000 x (380.000 + 451.000) = 40.000 x 831.500
(40.000+500.000) 540.000
= $ 61.592,59259
Total cost = $ 61.592,59259 + prime cost
= $ 61.592,59259 + 200.000
= $ 261.592,59259
Total cost/unit = $ 261.592,59259 / 40.000
= $ 6,53981 = $ 6,54
2a. DEPARTMENT 1
MOH allocated to scientist = scientific machine hours dept 1 x MOH dept 1
Total machine hours dept 1
= 20.000 x380.000
340.000
= 22.352,94 = 22.353
MOH allocated to business = business machine hours dept 1 x MOH dept 1
Total machine hours dept 1
= 320.000 x380.000
340.000
= 357.647
DEPARTMENT 2
MOH allocated to scientist = scientific DLH dept 2 x MOH dept 2
Total DLH dept 2
= 15.000 x451.500
547.500
= 12.369,86301 = 12.370
MOH allocated to business = business DLH dept 2 x MOH dept 2
Total DLH dept 2
= 532.500 x 451.500
547.500
= 439.130
2b. DEPARTMENT 1
MOH allocated to scientist = scientific DLH dept 1 x MOH dept 1
Total DLH dept 1
= 40.000 x380.000
100.000
= 152.000
MOH allocated to business = business DLH dept 1 x MOH dept 1
Total DLH hours dept 1
= 60.000 x380.000
100.000
= 228.000
DEPARTMENT 2
MOH allocated to scientist = scientific MH dept 2 x MOH dept 2
Total MH dept 2
3. Scientific :
Setup cost machine hours = scientific MH x total setup cost
Total MH
= 35.000 x (100.000+125.000)
35.000+380.000
= 35.000 x 225.000
415.000
= 18.976
Inspection cost inspection hours = scientific IH x Total IC
Total IH
= 10.000 X (80.000+110.000)
1000+1500
= 76.000
Power production cost = scientific PR x total power
Total PR
= 40 x (110.000+100.000)
40+60
= 84.000
Maintenance maintenance hours = scientific MH x Total maintenance
Total MH
= 800 x 206.500
800+3200
= 41.300
Total MOH scientific = 18.976 + 76.000 + 84.000 + 41.300 = 220.276
Total cost = 220.276 + 200.000 = 420.276
Total cost/unit = 420.276 / 40.000 = 10,5069
Business
Set up cost machine hours = Business MH x Total Setup cost
Total MH
= 380.000 X 225.000
415.000
= 206.024,09
Inspection cost inspection hours = Business IH x total IC
Total IH
= 1.500 X 190.000
2.500
= 114.000
Power Production runs = Business PR x Total Power
MOJAKOE
AKUNTANSI BIAYA
UNDERGRADUATE PROGRAM
FACULTY OF ECONOMICS
UNIVERSITY OF INDONESIA
FINAL EXAM
SEMESTER GASAL 2010/2011
COST ACCOUNTING
TEAM TEACHING
180 MINUTES
CLOSED BOOK
Problem 1 (25%)
Waybulo Corporation is a manufacturing company, which produces three kinds of leather related
product, which are bags, purse, and wallet. Right now, the company has difficulties in determining
the profitability of each of the product, and therefore is considering to implement Activity Based
Costing system. After several interview and research, the company determine seven activities
which are :
Direct Material Rp 8,000 per bags Rp 7,000 per purse Rp 9,000 per wallet
Direct Labor Rp 1,000 per bags Rp 1,500 per purse Rp 1,200 per wallet
The company already performed the first stage of Activity Based Costing, which was allocating the
indirect costs to each of the activities, Now the company is trying to do the second stage
alloacation. Results of the first stage allocarion was stated below:
The activity drivers (cost drivers) to allocate each of the activities to products are listed below.
(you have to match the activity drivers listed - one driver for one activity only)
Packaging Hour per unit 0.05 hours per unit 0.03 hours per unit 0.02 hours per unit
Number of moves per run 3 moves per run 4 moves per run 5 moves per run
Inspection Hours per run 2 hours per run 3 hours per run 4 hours per run
Number of Purchase order 300 purchase order 400 purchae order 500 purchase order
Machine hour per unit 0.1 per unit 0.12 per unit 0.15 per unit
Set up hours per run 0.25 hours per run 0.35 hours per run 0.5 hours per run
Calculate the profitability of each product using the traditional method, assuming that all of
the indirect costs will be allocated using machine hours
Calculate the profitability of each product using the ABC method
What is your recommendation to improve company’s profitability?
Problem 2 (20%)
PT Heksa produces t-shirts and apparels. All production processes are started when customers
order is received. In December 2010, there was no initial inventory. Production costs consist of
costsof conversion and materials. Raw materials were purchased using JIT system. In addition,
below is some additional information related with PT Heksa’s production :
Required:
Assuming that the company uses backflush costing method, make all necessary journals to record
the activities carried out in December 2010 if 3 (three) trigger points are used. These points
include: the purchasing of raw materials, the completion of finished goods and sales of finished
goods.
Problem 3 (20%)
Julia Company manufactures three join products A, B, and C as a result of a joint process. During
October, Joint process costs totaled $288,000. Details regarding each of the three products show:
A B C
Required:
1. Compute the cost assigned to the ending inventory of each product and in total, using NRV
(net Realizable Value) Method. There were no units in finished good on October 1.
2. Customers have been found who would be willing to buy all of the output of each product
at the split off point for the following prices : A :$60 ; B:$65 ; C:$25 . Show which product
should be sold at the split-off point.
3. Now supposed the $60,000 cost of B’s separable cost includes $18,000 of allocated fixed
costs, and the facilities that would be used to further process B have an alternative use. If
B is not processed further, the alternative use of these facilities will generate revenue of
$6,000 and variablecost of $1,000. Should B processed further?
Problem 4 (20%)
Gotham University offers onlu high-tech graduate level programs. Gotham has two principal
operating departments, Engineering and Computer sciences, and two supports departments,
Facility and technology maintenance, and enrollment services. The base used to allocate facility
and technology maintenance is budgeted total maintenance hours, The base used to allocate
enrollment services is number of credit hours for a department, The facility and technology
maintenance budget is $350,000, while the enrollment services budget is $950,000. The following
chart summarizes budgeted amounts and allocation base amounts used by each department :
Allocate support costs to each of the two principal operating departments, engineering and
computer sciences using :
a) Direct Method
b) Step Down Method
c) Reciprocal Method
Problem 5 (15%)
The door company manufactures doors. Classify each of the following quality costs as prevention
costs, appraisal costs, internal failure costs, or external failure costs.
Answers
Problem 1
a.)Traditional Method
=6,000/11,100 * 888,000,000
=480,000
=3,600/11,100 * 888,000,000
=288,000
=1,500/11,100 * 888,000,000
=120,000
Traditional
Method Bags Purse Wallet
Revenues 60,000*16,500= Rp 990,000,000 30,000*25,000= Rp 750,000,000 10,000*28,000= Rp 280,000,000
Direct Method 60,000*8,000= Rp 480,000,000 30,000*7,000= Rp 210,000,000 10,000*9,000= Rp 90,000,000
Direct Labor 60,000*1,000= Rp 60,000,000 30,000*1,500= Rp 45,000,000 10,000*1,200= Rp 12,000,000
Overhead Cost Rp 480,000,000 Rp 288,000,000 Rp 120,000,000
Profit (Gross
Margin) (Rp 30,000,000) Rp 207,000,000 Rp 58,000,000
percentage -3,03% 27.6 % 20.71%
=394,175,625
=292,647,187.50
=201,177,187.50
Problem 2
Date Description Dr Cr
2010 31 Inventory-Materials and in process control $ 100.000
Dec Account Payable Control $ 100.000
Conversion Cost Control $ 120.000
Various Account $ 120.000
31 (No Entry)
31 Finished Good Control $ 160.000
Inventory-Materials and in process control $ 48.000 1600*30
Conversion Cost Allocated $ 112.000 1600*70
Problem 3
$25,000 $100
$60
A A
$65 $80
$60,000
B B
$25 $50
$105,000
C C
1. NRV Method
Separable Allocated
Product Units Price FSV Cost NRV Weight JC
$ $ $ $
A 1000 $100 100.000 25.000 75.000 0.1875*288000 54.000
$ $ $ $
B 3000 $80 240.000 60.000 180.000 0.45*288000 129.600
$ $ $ $
C 5000 $50 250.000 105.000 145.000 0.3625*288000 104.400
$
400.000
Unit
Allocated Separable Total Prod Unit Ending Ending
Product JC cost Cost Cost/Unit Sales Price Inv Inv
$ $ $ $ $ $
A 54.000 25.000 79.000 79 800 100 200 15.800
$ $ $ $ $ $
B 129.600 60.000 189.600 63,2 2500 80 500 31.600
$ $ $ $ $ $
C 104.400 105.000 209.400 41,88 4300 50 700 29.316
$
76.716
2. Product A
Product B
Incremental Revenues =3,000 x ($80-$65) =$45,000
Incremental Costs =$60,000
Incremental Operating Income =($15,000)
Product C
Incremental Revenues =5,000 x ($50-$25) =$125,000
Incremental Costs =$105,000
Incremental Operating Income =$20,000
-Further Processing A and C can increase operating income. By processing A, there is increase
about $15,000, and C $20,000. On the other side, further processing B decrease operating
income by $15,000. So product B should be sold at split off point
3.
Incremental Revenues =3,000 x ($80-$65)- $6,000 =$39,000
Incremental Costs =$60,000-($18,000+$1,000)=$41,000
Incremental Operating Income =($ 2,000)
Further processing B still decrease the operating income so product B shouldnt be
processed further.
Problem 4
a) Direct Method
F&t Enrollment Computer
Engineering Total
Maintenance Service Sciences
Budgeted OH
Costs $ 350.000 $ 950.000 $ 3.500.000 $ 1.400.000 $ 6.200.000
Allocation of
F&T Maint $ (350.000) $ 233.333,33 $ 116.666,67 $ -
Allocation of
Enrollment $ (950.000) $ 380.000 $ 570.000 $ -
Total
Budgeted Cost $ - $ - $ 4.113.333 $ 2.086.667 $ 6.200.000
b) Step down Method
Allocation F&t Maintenance to enrollment service = =62.5%
Allocation enrollment service to F&t Maintenance = =3.23%
So, F&T maintenance allocate first
F&t Enrollment Computer
Engineering Total
Maintenance Service Sciences
Budgeted OH Costs $ 350.000 $ 950.000 $ 3.500.000 $ 1.400.000 $ 6.200.000
Allocation of F&T
Maint $ (350.000) $ 218.750 $ 87.500,00 $ 43.750,00 $ -
$ 1.168.750
Allocation of
Enrollment $ (1.168.750) $ 467.500 $ 701.250 $ -
Total Budg OH $ - $ - $ 4.055.000 $ 2.145.000 $ 6.200.000
c) Reciprocal Method
F&T Maintenance = $350,000+0.032258064 Enrollment Service
Enrollment Service =$950,000+0.625 F&T Maintenance
Enrollment Service =$950,000+0.625(350,000+0,032258064 Enrollment Service)
Enrollment Service =$1,192,798.354
F&T Maintenance =$388,477.365
Budgeted OH
Costs $ 350.000 $ 950.000 $ 3.500.000 $ 1.400.000 $ 6.200.000
Allocation of
F&T Maint $ (388.477,366) $ 242.798,354 $ 97.119,34 $ 48.559,67 $ -
$ 1.192.798,354
Allocation of
Enrollment $ 38.477,366 $ (1.192.798,354) $ 461.728,395 $ 692.592,5925 $ -
Total
Budgeted OH $ - $ - $ 4.058.847,737 $ 2.141.152,263 $ 6.200.000
Problem 5
a) Internal Failure costs.
b) Internal Failure costs.
c) Prevention Costs.
d) Appraisal Costs.
e) External Failure costs.
f) External failure costs.
g) Prevention costs.
h) Internal Failure costs.
i) Internal Failure costs.
j) Prevention costs.
k) Prevention costs.
l) Appraisal costs.
m) Internal Failure costs.
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www.spa-feui.com MOJAKOE UAS Akuntansi Biaya 2011
COST ACCOUNTING
Final Exam – Odd Semester 2011 / 2012
All Class Parallel
Closed Book
180 Minutes
Hint: You need to provide the analysis for the three different receivers
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Due to the popularity of its products, SuperNoodle decides to add a new line of products that targets
dieters. These new products are produces by adding a special ingredient to dilute fat in original spice
and are to be sold under the names Diet Spicy Chicken and Diet Spicy Beef. The following is the
monthly data for all the products:
Joint Cost Diet Spicy Diet Spicy Beef
Chicken
Joint cost (Cost of noodles, spices, $ 240,000
and other inputs and processing to
split off point)
Separable costs of processing 10,000 $ 48,000
tons of Spicy Chicken into 12,000
Diet Spicy Chicken
Separable costs of processing 20,000 $ 168,000
tons of Spicy Beef into 24,000 Diet
Spicy Beef
Spicy Spicy Beef Diet Spicy Diet Spicy Beef
Chicken
Chicken
Beginning inventory (tons) 0 0 0 0
Production (tons) 10,000 20,000 12,000 24,000
Transfer for further processing (tons) 10,000 20,000
Sales (tons) 12,000 24,000
Selling price per ton $ 10 $ 15 $ 18 $ 25
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Required:
1. Calculate SuperNoodle’s gross margin percentage for Diet Spicy Chicken and Diet Spicy Beef
Noodles when joint costs are allocated using the following methods (15 marks):
a. Sales value at split-off point
b. Physical measure method
c. Constant gross margin method
Hints: round your calculation in two digits
2. Recently, SuperNoodle discovered that the stock it is dumping can be sold to cattle ranchers at
$5 per ton. In a typical month with the production levels shown, 4,000 tons of stock are
produced and can be sold by incurring marketing costs of $10,800. Baskoro, a management
accountant, points out that treating the stock as a joint product and using the sales value at
split off method, the stock would be lose about $2,228 each month, so it should not be sold.
How did Baskoro arrive at that final number, and what do you think of his analysis? Should
SuperNoodle sell the stock? Show your calculation (5 marks)
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2. For each cost category, summarize total Finishing Department costs for April and calculate cost
per equivalent unit. (5 marks)
3. Assign total costs to good units completed, spoilage, and ending inventory. (5 marks)
Required:
1. Record all journal entries for the monthly activities related to the above transactions if
backflush costing is used. (10 marks)
2. Describe the types of businesses that might use backflush costing. Is backflush costing usually
restricted to companies adopting JIT production methods. Explained. (5 marks)
No. 5 (20%)
Power Maintenance Machining Assembly
Overhead Cost* $ 50,000 $ 40,000 $120,000 $60,000
Kilowatt hours 100,000 300,000 100,000
Machine hours 5,000 10,000 5,000
Watterman Company has two producing departments: Machining and Assembly and two support
departments: Power and Maintenance. The budgeted costs and normal usage are as follows for the
coming year:
*All overhead costs are variable
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The president of Watterman was approached by a local utility company and offered the opportunity to
buy power for $0.11 per kilowatt-hour. The president has asked you to determine the cost of
producing power internally so that a response to the offer can be made.
Required:
1. Compute the unit cost of kilowatts for overall plant usage. Based on this computation, how
would you respond to the offer to buy the kilowatts externally? (5 marks)
2. Now use the reciprocal method to compute the cost of operating the Power Department.
Divide this total cost by the total kilowatts produced by the Power Department to find a cost
per kilowatt-hour. Based on this computation, how would you respond to the offer to buy
kilowatts externally? (10 marks)
3. Show that the decision associated with the reciprocal method (requirement 2) is correct by the
following two steps: (a) computing the saving realized if the Power Department is eliminated
and (b) computing the cost per kilowatt hour saved by dividing total saving by the kilowatt
needed if the Power Department is eliminated. (Hint: Total savings include the direct costs of
the Power Department plus any costs avoided by the Maintenance Department since it no
longer needs to serve the Power Department. The total kilowatt-hours consumed by the
company need to be adjusted, since the power needs of the Maintenance Department
decrease when the amount of service the offer decreases) (5 marks)
JAWABAN
Nomor 1
a. This is because not every company has more indirect costs than direct costs. ABC system will be
useful if implemented in the company that has many indirect costs.
b. Steps:
1. Identify the products that are the chosen cost objects
2. Identify the direct costs of the products
3. Select the cost allocation base
4. Identify the indirect costs associated with cost allocation base
5. Compute the rate per unit
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Nomor 2
Allocation of Joint Costs using Sales Value at Splitoff Method
Revenues
(12,000 tons ×$18 per ton; 24,000 ×$25 per ton) 216,000 600,000 816,000
Deduct joint costs allocated (from Panel A) 80,000 160,000 240,000
Deduct separable costs 48,000 168,000 216,000
Gross margin 88,000 272,000 360,000
Gross margin percentage 41% 45% 44%
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Baskoro probably performed the analysis shown below to arrive at the net loss of
$2,228 from marketing the stock:
Allocation of Joint Costs using Sales Value at Splitoff
Revenues
(12,000 tons ×$18 per ton; 24,000 × $25 per ton;
4,000 ×$5 per ton) 216,000 600,000 20,000 836,000
Separable processing costs 48,000 168,000 216,000
Joint costs allocated (from Panel A) 57,143 171,429 11,428 240,000
Gross margin 110,857 260,571 8,572 380,000
Deduct marketing costs 10,800 10,800
Operating income (2,228) 369,200
In this (misleading) analysis, the $240,000 of joint costs are re-allocated between Spicy
Chicken, Spicy Beef and Stock. Irrespective of the method of allocation, this analysis is wrong.
Joint costs are always irrelevant in a process-further decision. Only incremental costs and
revenues past the splitoff point are relevant. In this case, the correct analysis is much simpler:
the incremental revenues from selling the stock are $20,000, and the incremental costs are the
marketing costs of $10,800. So, Instant Foods should sell the stock—this will increase its
operating income by $9,200 ($20,000 – $10,800).
Nomor 3
Item Quantity TIC DM CC
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Assignment of costs
Nomor 4
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192.000.000
CC Allocated 448.000.000
CC Allocated 448.000.000
CC control 232.000.000
Nomor 5
A.
Power 63.157,89474
Maintenance 52.631,57895
Power Maintenance Machining Assembly Total
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Allocation of
Maintenance 13.157,89474 (52.631,579) 26.315,789 13.157,895
Page 11 of 11
MOJAKOE
UAS - AKUNTANSI BIAYA
DEPARTEMEN AKUNTANSI
FAKULTAS EKONOMI
The good management of spoilage, scrap and rework is very important to be done in an era where
companies are required to always take care of the interests of business and the environment.
You are required to explain the things that need to be done by a manager nowadays so that the
interests of business and the environment can be maintained.
Explain :
a. What is the so-called a good management of scrap, spoilage and rework ? (hint : you are
required also to explain the difference between normal and abnormal spoilage management)
( 5 % ).
b. Conventional management accounting systems that exist today do not easily provide
information regarding the calculation of the environmental cost so that the business and
environment can be maintained. Explain ( 5 % ).
c. What are the things that need to be modified in the conventional management accounting
systems that exist today so that information regarding the calculation of environmental costs
can be harmonized with the calculation of the cost of scrap , spoilage and rework so that the
information could be easily provided and available ( 5 % ) .
d. You are faced with production processes that result in significant scrap value. Describe the
things that need to be done by the company in order to manage scrap so that production
efficiency can be achieved? ( 5 % ) .
Morgan Industries is a manufacturer of chemicals for various purposes. One operation produces
XXL, a chemical used in swimming pools; YYL, a chemical used in pesticides; and ZZL, a by product
that is sold to fertilizer manufacturers. The company uses net realizable value method to allocate
joint costs. The by product is inventoried at its market value less its disposal cost, and this value
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AB UAS 2014
is used to reduce the joint product cost before allocation to the main products. Data are
presented below. During the period, the total joint costs are $ 3,404,000.
Required
1. Determine the allocation of joint cost for the period.
2. Compute the cost assigned to the finished goods inventories for XXL, YYL, and ZZL.
3. The company has an opportunity to sell YYL at the split off point for $3.8 per gallon. Give
your argument whether the company should sell YYL at the split off point or continue to
process this product further.
Required:
1. Allocate two support departments` cost using the following method:
a. Direct method
b. Step down method
c. Reciprocal (simultaneous) method
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2. Supposed that during fourth quarter 2013, man-hours for providing tax and accounting
services respectively are 16,000 and 20,000 man-hours. Compute overhead allocation
rate per man-hour for Tax Services (TS) and Accounting Services (AS) departments under
direct method, step down method and reciprocal (simultaneous) method that you have
already calculated based on requirement (1). Which method do you prefer? Comment
your results.
A. The SA Furniture company produces a specialty wood furniture product, and has the
following information available concerning its inventory items:
B. ABC Products manufactures microfilm cameras. For October, there were no beginning
inventories of direct materials and no beginning or ending work in process. Conversion
costs is the only indirect manufacturing cost category currently used.
The data of November 2013are as follow:
Conversion costs - December $120,000
Direct materials purchased - December $300,000
Units produced – December 70,000 units
Units sold - December 60,000 units
Selling price $50 each
Required:
Journalize entry(ies) that would occur if the only trigger point is the production of finished
units
C. Explain both qualitative and quantitative performance measures that can be applied to a
company that adopt Just-in-Time!
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Deutschland Electronics currently allocates call center support costs using a rate of 0.5% of sales
revenue.
Required:
a. Compute the amount of call center support costs allocated to each product line under the
current system.
b. Assume Deutschland decides to use the average call length for information to assign last
year's support costs. Does this allocation method seem more appropriate than percentage of
sales? Why or why not?
c. Assume Deutschland decides to use the numbers of calls for information and for warranties
to assign last year's support costs of $65,000. Compute the amount of call center support
costs assigned to each product line under this revised ABC system.
d. Deutschland Electronics assigns bonuses based on departmental profits. How might the
Specialty Products manager try to obtain higher profits for next year if support costs are
assigned based on the average call length for information?
e. Discuss the barriers for implementing ABC for this call center.
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If the company sell YYL at the splitoff point, the company will lose $608,000 from its
income statement. Thus, it is better for the company to continue processing YYL.
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Allocate the complete reciprocated costs of each support department to all other departments
(both support departments and operating departments) on the basis of the usage percentages
2.
Total Budgeted Overhead Costs After Budgeted Overhead Rate per Man-Hour
Allocation of All Support-Department for Product Costing Purposes
Support Department Tax Services (16,000 Accounting Services
Tax Services Accounting Services
Cost-Allocation Method man-hours) (20,000 man-hours)
Direct 19,712,000 28,704,000 1,232.00 1,435.20
Step-down 19,672,000 28,744,000 1,229.50 1,437.20
Reciprocal 19,848,842 28,567,159 1,240.55 1,428.36
I prefer the reciprocal method, since it is conceptually the most precise method.
Reciprocal method considers the mutual service provided among all support departmets,
furthermore, it highlights the complete reciprocated costs of support departments and
how these costs differ from budgeted or actual costs of the department. With these
informations on hand, one can make a decision about whether to outsource the support
department or not.
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All the alternatives have the same total cost, thus, it is indifference for SA Furniture
Company to have 0, 20, or 50 safety stock.
B. Journal
Conversion Costs Control 120,000
Various accounts 120,000
Finished Goods Control 420,000
Conversion Costs Allocated 120,000
Accounts Payable Control 300,000
C. In order to measure the performance of Just In Time, one can use quantitative and
qualitative measure. With quantitative measure, one can use financial ratio such as
inventory turnover ratio, number of days of inventory, units produced per hour,
manufacturing cycle time, etc to measure what the adoption of JIT has done in one’s
company.
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AB UAS 2014
b. The allocation method using the average call length for information seems more
appropriate to adopt compared to the current system. It is more appropriate since
average call length for information seems more like a cost driver than sales revenue is.
The use of cost driver as the cost-allocation base will result in a more accurate cost
allocation, although whether average call length for information is the cost driver for
the indirect-cost pool or not need further evaluation.
d. To obtain a higher profit, specialty products department must first reduce its cost, in this
case, call center support costs. In order to reduce the cost, the department can evaluate
what question do the customers usually ask that makes the average call length for
information is 3 minutes. Now that department has the frequently asked question, the
department can make a page on its website to answer the frequently asked question.
Moreover, the department can print a clearer instruction on the product’s manual book.
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