The Cost of Quality

and
Accounting for
Production Losses
1
The Cost of Quality

• Cost that exist cause poor

quality of product

• Cost of obtaining quality of

product and Cost incurred
from a lack quality of product

2
 Types of Quality Cost

Cost of Control activity

Obtaining a. Prevention
b. Appraisal

Cost from Failure activity

a Lack a. Internal Failure
b. External Failure

3
Quality Defined

A defective product
is one that does not
conform to
specifications.

4
 Quality Defined

Zero defects
means that all
products
conform to
specifications.

5
In Job Order Cost System

6
Scrap Defect
Spoiled

7
Accounting for SCRAP

SCRAP

1. Filing
2. Defective materials
3. Broken Part

8
 Scrap  Dijual

Treatment Journal
Other income Cash (A/R)................. Xx
Other income................ xx
Credited to Cash (A/R)................. Xx
COGS Cost of GS .................... xx
Credited to Cash (A/R)................. Xx
FOH Control FOH Control ................ Xx
Credited to Cash (A/R)................. Xx
WIP individual WIP Job # ................ xx
JOB
9
 Spoiled  not correctible

1. Caused by Customer
•Perubahan spesifikasi oleh pelanggan

•Kerugian yang timbul ditanggung oleh pelanggan

•Spoiled Goods dicatat sebagai Inventory

2. Caused by Internal failure

•Kesalahan karyawan, kerusakan mesin, kesalahan proses, dsb

•Dibebankan ke FOH sebesar selisih biaya dengan harga jual

•Spoiled Goods dicatat sebagai Inventory 10

 Ilustrasi:
• PT X sedang mengerjakan Job #123, sebanyak
1.000 unit barang A. Ketika perusahaan sudah
menyelesaikan 100 unit, ternyata ada
perubahan spesifikasi dari pelanggan, dan
barang yang sudah jadi tersebut tidak bisa
diubah. Tetapi meskipun tidak cocok dengan
spesifikasi pelanggan barang tersebut dapat
dijual oleh PT. X dengan harga $10 per unit.
• Total biaya yang dikeluarkan untguk
menyelesaikan Job #123 adalah sebagai
berikut:
• Direct Material.................... $22.000
• Direct Labor ....................... $ 5.500
• Factory Overhead............... $11.000
• Total ................................... $38.500 11
Pembebanan biaya
Work In Process $38.500
Direct Material $22.000
Direct Labor $ 5.500
FOH Applied $11.000

Penyelesaian/Penyerahan Job #123

Spoiled Goods Inventory $ 1.000
Cost of Goods Sold $37.500
Work In Process $38.500
Cash/Account Receivable $56.250
Sales $56.250
(Penjualan/Penyerahan: Markup 50%)

Penjualan Spoiled Goods

Cash $1.000
Spoiled Goods Inventory $1.000
12
 Defective  Rework
1. Caused by Customer
• Misal ada penambahan dari spesifikasi mula-mula oleh pelanggan

• Semua biaya penyempurnaan/perubahan dibebankan ke JOB ybs

2. Caused by Internal failure

• Kesalahan karena karyawan, kerusakan mesin,
• Sehingga barang cacat

• Dibebankan ke FOH control

• Jika biaya perbaikan lebih besar dari membuat baru, sebaiknya

• Difective Goods dijual saja
13
Illustrasi
• Job #234 sebanyak 200 unit, dengan biaya
• Diret Material .......................... $100.000
• Labor ($10 x 2.000 hr)............. $ 20.000
• FOH Applied ($40 x 2.000 hr).. $ 80.000
• Total......................................... $200.000

• Ketika barang sudah jadi, pelanggan minta

supaya ditambahi spesifikasi tertentu, dengan
rincian biaya:
• Direct material......................... $ 8.000
• Direct labor.............................. $ 1.000
• FOH applied............................. $ 4.000
• Total Biaya tambahan............ $ 13.000

14
Pembebanan biaya-Mula-mula
Work In Process $200.000
Direct Material $100.000
Direct Labor $ 20.000
FOH Applied $ 80.000
Pembebanan biaya-Tambahan
Work In Process $13.000
Direct Material $8.000
Direct Labor $ 1.000
FOH Applied $ 4.000
Penyelesaian/Penyerahan Job #23
Cost of Goods Sold $213.000
Work In Process $213.000
Cash/Account Receivable $319.500
Sales $319.500
(Penjualan/Penyerahan: Markup 50%)
15
In Process Cost System

16
Scrap Reworking
Spoiled

17
Dalam Process Costing, umumnya
Production Loss disebabkan
oleh:

OLEH KARENA ITU:

DI KREDITKAN KE
FOH – CONTROL
18
 SCRAP
HASIL PENJUALAN SCRAP
DIKREDITKAN KE FOH-CONTROL

CASH/ACC. RECV...................... XXX

FOH Control............................ XXX

19
Spoilage goods
• Dibebankan ke FOH control
• Tentukan pada tingkat berapa
produk tersebut Hilang?
• Perhatikan dampak terhadap Unit
Equivalent
• Barang cacat di Transfer ke
Pesediaan Barang Cacat, dan dapat
dijual dengan harga lebih murah
(Barang second)

20
Unit Ekuivalen
Metode Rata-Rata:
TO + %TP(EWIP) + %TP(Spoiled)

Metode FIFO:
Current%(BWIP) + (TO – BWIP) +
%TP(EWIP) + %TP(Spoiled)

21
Illustrasi
Keterangan Molding Glazing
Dep Dep
BWIP (100, 60) 4.000
(100, 70) 3.000
TI 21.000 19.000
TO 19.000 15.000
EWIP (100, 30) 3.600
(100, 25) 4.000
SPOILED (100,80) 2.400
(100%) 3.000

22
Lanjutan ......
Keterangan Molding Glazing

BWIP-Cost
• Dari Mold $ 1396.00
• DM $ 615.00 196.00
• DL 366.40 310.00
• FOH 549.60 310.00
Cots Added:
From Prec. Dep -
• DM $ 3.885.00 $ 1.520.00
• DL 2.273.60 3.718.00
• FOH 3.410.40 3.718.00
Barang cacat dapat dijual dengan harga $0.50/unit
23
 Doco Pottery Company
DEPARTEMEN MOLDING
LAPORAN HARGA POKOK PRODUKSI
Bulan NOPEMBER XXXX

Keterangan Mat Labor FOH Rincian Jumlah

PHYSICAL FLOW
Unit BWIP - - - 4.000
Unit Transfer In (TI) 21.000
Unit to be Account 25.000
Unit Transfer Out (TO) 19.000
Unit EWIP 100% 30% 30% 3.600
Unit HIlang (Spoiled) 100% 80% 80% 2.400
Jumlah unit yang diolah 25.000

COST COST Total Unit Cost

COST CHARGE TO THIS DEP.
BWIP This Period COST Equivalent per Unit
Materials 615,00 3.885,00 4.500,00 25.000 0,18
Labors 366,40 2.273,60 2.640,00 22.000 0,12
549,60
FOH Applied (Dibebankan) 3.410,40 3.960,00 22.000 0,18
TOTAL COST 11.100,00 0,48
24
 Total Cost Total
3 COST RECONCILIATION Unit per Unit Cost
a Cost of Goods Trabsfer to Next Dept. 19.000 0,48 9.120,00
b Spoiled charge to FOH Control:
1) Materials 2.400 100% 2.400 0,18 432,00
2) Labors 2.400 80% 1.920 0,12 230,40
3) FOH 2.400 80% 1.920 0,18 345,60
1.008,00
c Cost of EWIP
1) Materials 3.600 100% 3.600 0,18 648,00
2) Labors 3.600 30% 1.080 0,12 129,60
3) FOH 3.600 30% 1.080 0,18 194,40
Cost of EWIP 972,00
TOTAL COST 11.100,00

25
 Doco Pottery Company
DEPARTEMEN GLAZING
LAPORAN HARGA POKOK PRODUKSI
Bulan NOPEMBER XXXX

Keterangan Mat Labor FOH Rincian Jumlah

1 PHYSICAL FLOW
Unit BWIP - - - 3.000
Unit Transfer In (TI) 19.000
Unit to be Account 22.000
Unit Transfer Out (TO) 15.000
Unit EWIP 100% 25% 25% 4.000
Unit HIlang (Spoiled) 100% 100% 100% 3.000
Jumlah unit yang diolah 22.000

COST COST Total Unit Cost

2 COST CHARGE TO THIS DEP. BWIP This Period COST Equivalent per Unit
Dari Departemen Molding 1.396,00 9.120,00 10.516,00 22.000 0,48
Materials 196,00 1.520,00 1.716,00 22.000 0,08
Labors 310,00 3.718,00 4.028,00 19.000 0,21
FOH Applied (Dibebankan) 310,00 3.718,00 4.028,00 19.000 0,21
TOTAL COST 20.288,00 26 0,98
 Total Cost Total
3 COST RECONCILIATION Unit per Unit Cost
a Cost of Goods Transfer to Next Dept. 15.000 0,98 14.700,00
b Cost of Spoiled Goods Transfer to Inventory 3.000 0,50 1.500,00
c Spoiled charge to FOH Control:
1) Cost of Spoiled Goods 3.000 100% 3.000 0,98 2.940,00
2) Less: Harga Jual Spoiled Goods 3.000 3.000 0,50 (1.500,00)
1.440,00
d Cost of EWIP
1) Dari dep Molding 4.000 100% 4.000 0,48 1.912,00
1) Materials 4.000 100% 4.000 0,08 312,00
2) Labors 4.000 25% 1.000 0,21 212,00
3) FOH 4.000 25% 1.000 0,21 212,00
Cost of EWIP 2.648,00
TOTAL COST 20.288,00
27
 Doco Pottery Company
DEPARTEMEN MOLDING
LAPORAN HARGA POKOK PRODUKSI
Bulan NOPEMBER XXXX

Keterangan Mat Labor FOH Rincian Jumlah

1 PHYSICAL FLOW
Unit BWIP 100% 60% 60% 4.000
Unit Transfer In (TI) 21.000
Unit to be Account 25.000
Unit Transfer Out (TO) 19.000
Unit EWIP 100% 30% 30% 3.600
Unit HIlang (Spoiled) 100% 80% 80% 2.400
Jumlah unit yang diolah 25.000
28
2 COST CHARGE TO THIS DEP.
COST
a Cost of BWIP BWIP
Materials 615,00
Labors 366,40
FOH Applied (Dibebankan) 549,60
1.531,00 Unit Unit
b Cost Added this Period Ekuivalen Cost
Materials 3.885,00 21.000 0,19
Labors 2.273,60 19.600 0,12
FOH Applied (Dibebankan) 3.410,40 19.600 0,17
9.569,00
TOTAL COST 11.100,00 0,48

29
3 COST RECONCILIATION Unit per Unit Cost
a Cost of Goods Trabsfer to Next Dept. 19.000
1) From BWIP 1.531,00
2) Finishing BWIP this period
1) Materials 4.000 - - 0,19 -
2) Labors 4.000 40% 1.600 0,12 185,60
3) FOH 4.000 40% 1.600 0,17 278,40
3) Dari periode ini 15.000 100% 15.000 0,48 7.125,00
TOTAL COGS 9.120,00

b Spoiled charge to FOH Control:

1) Materials 2.400 100% 2.400 0,19 444,00
2) Labors 2.400 80% 1.920 0,12 222,72
3) FOH 2.400 80% 1.920 0,17 334,08
1.000,80
c Cost of EWIP
1) Materials 3.600 100% 3.600 0,19 666,00
2) Labors 3.600 30% 1.080 0,12 125,28
3) FOH 3.600 30% 1.080 0,17 187,92
Cost of EWIP 979,20
TOTAL COST 11.100,00
30
 Doco Pottery Company
DEPARTEMEN GLAZING
LAPORAN HARGA POKOK PRODUKSI
Bulan NOPEMBER XXXX

Keterangan Mat Labor FOH Rincian Jumlah

1 PHYSICAL FLOW
Unit BWIP 100% 70% 70% 3.000
Unit Transfer In (TI) 19.000
Unit to be Account 22.000
Unit Transfer Out (TO) 15.000
Unit EWIP 100% 25% 25% 4.000
Unit HIlang (Spoiled) 100% 100% 100% 3.000
Jumlah unit yang diolah 22.000
31
2 COST CHARGE TO THIS DEP.
COST
a Cost of BWIP BWIP
Dari dep Molding 1.396,00
Materials 196,00
Labors 310,00
FOH Applied (Dibebankan) 310,00
2.212,00 Unit Unit
b Cost Added this Period Ekuivalen Cost
Dari dep Molding 9.120,00 19.000 0,48
Materials 1.520,00 19.000 0,08
Labors 3.718,00 16.900 0,22
FOH Applied (Dibebankan) 3.718,00 16.900 0,22
18.076,00
TOTAL COST 20.288,00 1,00

32
a Cost of Goods Trabsfer to Next Dept. 15.000
1) From BWIP 2.212,00
2) Finishing BWIP this period
1) Dari Dep Molding 3.000 - - 0,48 -
1) Materials 3.000 - - 0,08 -
2) Labors 3.000 30% 900 0,22 198,00
3) FOH 3.000 30% 900 0,22 198,00
3) Dari periode ini 12.000 100% 12.000 1,00 12.000,00
TOTAL COGM 14.608,00
4) Transfer to Spoiled Inventory 3.000 3.000 0,50 1.500,00

b Spoiled charge to FOH Control:

1) Cost of Spoiled unit 3.000 100% 3.000 1,00 3.000,00
2) Less: Revenue from Spoiled goods 3.000 0,50 (1.500,00)
1.500,00
c Cost of EWIP
1) Dari dep Molding 4.000 100% 4.000 0,48 1.920,00
2) Materials 4.000 100% 4.000 0,08 320,00
3) Labors 4.000 25% 1.000 0,22 220,00
4) FOH 4.000 25% 1.000 0,22 220,00
Cost of EWIP 2.680,00
TOTAL COST 20.288,00
33