Cost Definition
-
Upload
nur-putri-hidayati -
Category
Documents
-
view
215 -
download
1
description
Transcript of Cost Definition
![Page 1: Cost Definition](https://reader036.fdocuments.us/reader036/viewer/2022082710/55cf9309550346f57b9b2a68/html5/thumbnails/1.jpg)
TASK 1
COST ESTIMATION ANALYZE
2-2 PRODUCT COST DEFINITION
There are 3 possible cost definitions were introduced to value-chain, operating, manufacturing. Identify which of the three product cost definitions best fits the following situations :
1. Setting The Price For New Product
The best cost definition is value-chain. This definition tells about : the arrangement in making the product contribution in making the product how to make a pricing decision.
2. Valuing Finished Goods Inventories For External Reporting
The best cost is manufacturing. In this definition, the production process will handled until the production process so we need to make the external report.
3. Determining Whether To Add A Complementary Product To The Product Line
We used the operating product. This cost definition tells about the strategic design, analyzing of profitability of the complementary product.
4. Choosing Among Competing Product Design
We also used the operating cost definition in this situation. Because operating product talked about how to observe all the design when we choose the competing product design.
5. Calculating Cost Of Goods Sold For External Reporting
The best cost definition is manufacturing. In this cost definition, all the information for external reporting will explain clearly.
6. Deciding Whether To Increase The Price Of An Existing Product
Value chain will be the right cost definition for this situation, because it’s explain about product mix and pricing decision.
7. Deciding Whether To Accept Or Reject A Special Order, Where The Price Offered Is Lower Than The Normal Selling Price
The cost definition will use is value chain, because tells about the profitability for the company.
![Page 2: Cost Definition](https://reader036.fdocuments.us/reader036/viewer/2022082710/55cf9309550346f57b9b2a68/html5/thumbnails/2.jpg)
8. Determining Which Of Several Potential New Products Should Be Developed, Produce And Sold
The best fit for this condition is value chain, because it is discuss about the research and development in making decision.
9. Deciding Whether To Produce And Sell A Product Whose Design And Development Costs Were Higher Than Budgeted
The best change for this condition is operation that helped us about strategic design and profitability.
2-3 COST DEFINITION
Beginning inventory : Direct material : $ 50,800 Work in process : $ 58,500
Ending inventory : Direct material : $ 21,500 Work in process : $ 23,500
Direct material purchased : $ 150,000Direct labor cost : $ 324,700
and 100,000 unit produce.
1. Total cost of direct material used in production
beginning direct material : $ 50,800
during year direct material purchased : $ 150,000 +
$ 200.800
ending direct material : $ 21,500 -
total cost of direct material used : $ 179,300
2. Cost of good manufactured, the unit manufactured cost
direct material used : $ 179,300direct labor : $ 324,700 +
$ 504 ,000 beginning work in process : $ 58,500 +
$ 562500ending work in process : $ 23,500 -cost of goods manufactured $ 539,000
Unit manufactured cost :
![Page 3: Cost Definition](https://reader036.fdocuments.us/reader036/viewer/2022082710/55cf9309550346f57b9b2a68/html5/thumbnails/3.jpg)
= Cost of goods manufactured total product
= $ 539,000 100,000 = $ 5.39
3. From calculation point b, assume $ 1.70 is direct materials in unit and $ 3.24 is overhead. Prime cost per unit? Conversion cost per unit ?Unit direct material : $ 1.70Unit direct labor : $ 3.247 +Prime cost per unit : $ 4.947
Unit overhead : $ 3.24Unit direct labor : $ 3.247 +Conversion cost per unit : $ 6.487
2-3 COST OF GOODS AND MANUFACTURED SOLD
Information in the beginning of November :Direct materials inventory : $ 48,500Work in process inventory : $ 10,000Finished goods inventory : $ 10,075
During November:Direct labor cost : $ 22,000Direct material : $ 70,000Overhead cost : $ 216,850
In the end of November :Direct material inventory : $ 15,900Work in process inventory : $ 6,050Finished goods inventory : $ 8,475
1. Cost of goods manufactured statement for November
direct material inventory (beginning) : $ 48,500direct material purchased during november : $ 70,000 +
$ 118,500direct material inventory : $ 15,900 -
$ 102,600work in process : $ 10,000 +
$112,600 work in process : $ 6,050 -
$106,550direct labor : $ 22,000 +
$128,550over head : $ 216,850 +
![Page 4: Cost Definition](https://reader036.fdocuments.us/reader036/viewer/2022082710/55cf9309550346f57b9b2a68/html5/thumbnails/4.jpg)
Goods manufactured cost : $ 345,400
2. Cost of goods sold schedule for November
cost of goods manufactured : $ 345,400beginning finished goods inventory : $ 10,075 +
$ 355,475ending finished goods inventory : $ 8,475 -
cost of goods sold : $ 347,000
COST ESTIMATION ANALYZE TASK
![Page 5: Cost Definition](https://reader036.fdocuments.us/reader036/viewer/2022082710/55cf9309550346f57b9b2a68/html5/thumbnails/5.jpg)
BY :
YULIA AINIL WARDAH
1210932029
LECTURER
Alizar Hasan, PhD
INDUSTRIAL ENGINEERING
ANDALAS UNIVERSITY
PADANG
2014