MENTORING AKUNTANSI BIAYA

1 “Sometimes the Question is Complicated and the Answers are Simple”

SOAL 1 Valley Corporation is a company which produces uniforms for Elementary School. The table below explains information regarding Standard Production Costs in Valley:

Standard Quantity Standard Price (Rp)

Raw Material 3 meter Rp 20.000 per meter

Direct Labor 5 DLH Rp 16.000 per DLH

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.

Below is the information about actual production costs:

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. Prepare all the journal entry for standard costing. SOAL 2 To produce one unit of chair, the company needs four pieces of woods, and the standard price of one unit piece of wood is Rp50,000. Also, the company needs 10 hours of direct labor and the standard price of one direct labor hour is Rp5,000. The total pre-determined factory overhead costs will be Rp350,000,000 and it will be charged to each products using direct labor hours as an allocation base. The budgeted direct labor hours used are 700,000 hours. The actual chair produced were 12,000 units, and it requires 122,000 of direct labor hours and 50,000 pieces of woods to manufacture all of those chairs. The company bought 58,000 pieces of woods (for manufacturing chairs) with the total costs of Rp2,457,000 The Total amount of direct labor costs paid for producing chairs were Rp585,600,000 The total electricity expenses paid for 20X9 were Rp113,000,000 The total maintenance expenses for machine and factory building during 20X9 were Rp44,500,000 The depreciation expenses for machinery and factory building for 20X9 were Rp102,000,000 The total indirect labor paid for 20X9 were Rp100,000,000. Beside chairs, the company also manufactures two other types of products, table and cupboard. The standard direct labor hours neeeded to produce those two products were 280,000 hours for table and 350,000 hours for cupboard. Prepare all the necessary journals to record with Standard Costing Method !

MENTORING AKUNTANSI BIAYA

2 “Sometimes the Question is Complicated and the Answers are Simple”

SOAL 3 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:

Job Cost Sheet Direct Material Direct Labor Factory Overhead Allocated (Applied)

Job – 23 Rp 50,000,000 Rp 5,000,000 Rp 10,000,000

Job – 26 Rp 40,000,000 Rp 8,000,000 Rp 16,000,000

Company’s finished goods inventory at November 1st, 2011 were as follows :

Job Cost Sheet Direct Material Direct Labor Factory Overhead Allocated (Applied)

Job – 21 Rp 80,000,000 Rp 10,000,000 Rp 20,000,000

Job – 24 Rp 30,000,000 Rp 8,000,000 Rp 16,000,000

Job – 25 Rp 50,000,000 Rp 15,000,000 Rp 30,000,000

Job – 28 Rp 70,000,000 Rp 23,000,000 Rp 46,000,000

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 :

Material Recquisition Form Amount Job Cost Sheet Number

MR-Nov-01 Rp 40,000,000 Job - 26

MR-Nov-02 Rp 30,000,000 Job - 30

MR-Nov-03 Rp 45,000,000 Job - 31

MR-Nov-04 Rp 60,000,000 Job - 32

MR-Nov-05 Rp 20,000,000 Job - 30

MR-Nov-06 Rp 75,000,000 Job - 33

MR-Nov-07 Rp 25,000,000 -

3. Paid salary Rp 200,000,000, which consisted of Rp 110,000,000 for Factory Labor, Rp

40,000,000 for Marketing Personnel, and Rp 50,000,000 for Administrative Personnel 4. Payment for Factory Labor consisted of:

Amount Job Cost Sheet Number

Rp 8,000,000 Job – 23

Rp 10,000,000 Job – 26

Rp 20,000,000 Job – 30

Rp 18,000,000 Job – 31

Rp 58,000,000 -

Rp 15,000,000 Job – 32

Rp 22,000,000 Job – 33

MENTORING AKUNTANSI BIAYA

3 “Sometimes the Question is Complicated and the Answers are Simple”

5. Paid electricity expenses Rp 60,000,000. It consisted of Rp 40,000,000 for operating the machine for making furniture, Rp 5,000,000 for factory administration, Rp 5,000,000 for marketing office, and Rp 10,000,000 for administrative office.

6. Paid rent for marketing office for one year, Rp 12,000,000. Rent will officially begin next month

7. Paid machine maintenance expenses for November 2011 Rp 20,000,000 8. Put an advertisement in local magazines (November issues), and paid Rp 3,000,000 9. Buy a new machine Rp 50,000,000. The company already paid Rp 20,000,000, and the rest

will be paid next month. Machine already delivered to the company 10. Depreciation expenses (including new machine) for November 2011 were Rp 30,000,000 for

factory machine, Rp 10,000,000 for factory building, and Rp 15,000,000 for administrative building

11. Factory Overhead wil be allocated to each Job based on direct labor costs, and the FOH rate is 200% of Direct Labor Costs

12. Job 23,26,30 and 31 already finished and transferred to finished goods inventory 13. Closed the over/underapplied FOH to Cost of Good Sold 14. Job which are sold during November 2011 were, and all of the sales were credit sales

Job Number Sales Price

Job - 21 Rp 180,000,000

Job - 23 Rp 115,000,000

Job - 24 Rp 75,000,000

Job - 25 Rp 125,000,000

Job - 30 Rp 155,000,000

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. SOAL 4 Asaya Clothing, Inc., is a manufacturer of winter clothes. It has a knitting department and a finishing department. This exercise focuses on the finishing department. Direct materials are added at the end of the process. Conversion costs are added evenly during the process. Asaya uses the weighted average method of process costing. The following information for June 2012 is available.

1. Calculate equivalent units of transferred-in costs, direct materials, and conversion costs 2. Summarize total costs to account for, and calculate the cost per equivalent unit for transferred-in costs, direct materials, and conversion costs. 3. Assign total costs to units completed (and transferred out) and to units in ending WIP.

Physical Units

(Tons)

Transferred-In

CostsDirect Materials

Conversion

Costs

Work in Process, Beginning Inventory ( June 1 ) 75 75.000$ -$ 30.000$

Degree of completion, Beginning WIP 100% 0% 60%

Transferred in During June 135

Completed and transferred out during June 150

Work in Process, Ending Inventory ( June 30 ) 60

Degree of Completion, Ending WIP 100% 0% 75%

Total costs added during June 142.500$ 37.500$ 78.000$

MENTORING AKUNTANSI BIAYA

4 “Sometimes the Question is Complicated and the Answers are Simple”

SOAL 5 Refer to information in number 3. Suppose that Asaya uses the FIFO method instead of the weighted average method in all of its departments. The only changes to Number 3 under the FIFO Method are that total transferred in costs of beginning work in process on June 1 are $60,000 (instead of $75,000) and total transferred-in costs added during June are $130,800 (instead of $142,500). SOAL 6 Melissa Crupp is the new manager of the materials storeroom for Canton Manufacturing. Melissa has been asked to estimate future monthly purchase costs for part #4599, used in two of Canton’s products. Melissa has purchase cost and quantity data for the past nine months as follows:

Estimated monthly purchases for this part based on expected demand of the two products

for the rest of the year are as follows:

a) The computer in Melissa’s office is down and Melissa has been asked to immediately

provide an equation to estimate the future purchase cost for part # 4599. Melissa grabs

a calculator and uses the high-low method to estimate a cost equation. What equation

does she get?

b) Using the equation from requirement 1, calculate the future expected purchase costs for

each of the last three months of the year.

c) After a few hours Melissa’s computer is fixed. Melissa uses the first nine months of data

and regression analysis to estimate the relationship between the quantity purchased

and purchase costs of part #4599. The regression line Melissa obtains is as follows:

Use the regression results to calculate the expected purchase costs for October,

November, and December. Compare the expected purchase costs to the expected

purchase costs calculated using the high-low method in requirement 2. Comment on

your results.

Month Cost of Purchase Quantity Purchase

Jan $10,390 2,250

Feb $10,550 2,350

March $14,400 3,390

April $13,180 3,120

May $10,970 2,490

June $11,580 2,680

July $12,690 3,030

Aug $8,560 1,930

Sept $12,450 2,960

Month Purchase Quantity Expected

Oct $2,900

Nov $3,100

Dec $2,500