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228x Filetype XLSX File size 0.30 MB Source: spa-febui.com
Sheet 1: Cover
| MOJAKOE | |||||
| COST ACCOUNTING | |||||
| PROBLEM I (Cost of Goods Manufactured and Cost of Goods Sold) | |||||
| Kuri Co. is a company that produces ceramics. The main factory is located in Madiun, but the main office is located in Jakarta. Kuri Co. has provided the following data relating to its operation for the year ended December 31,2018 | |||||
| Compute the Cost of Goods Manufactured and Cost of Goods Sold! | |||||
| Answers: | |||||
| Details | Amount | Direct materials | |||
| Raw Materials Inventory, December 31, 2018 | 15,000 | Beginning Inventory, Jan 1 | 6,600 | ||
| Finished Goods Inventory, December 31, 2018 | 61,000 | Purchase | 200,000 | ||
| Work in Process Inventory, December 31,2016 | 21,000 | Discount on Purchase | 4,800 | ||
| Factory Maintenance | 29,400 | Cost of Direct Materials Available | 201,800 | ||
| Sales | 1,091,000 | Ending Inventory, Dec 31 | 15,000 | ||
| Discount on Raw material purchase | 4,800 | Direct materials | 186,800 | ||
| Administrative salaries | 99,000 | Direct Manufacturing Labor | 171,000 | ||
| Interest Income | 2,000 | ||||
| Sales Delivery Expenses | 23,000 | Manufacturing Overhead | |||
| Factory Supplies Used | 13,400 | Indirect Manufacturing Labor | 10,000 | ||
| Retained Earning | 516,000 | Depreciation-Factory Building and Equipment | 8,500 | ||
| Common Stock ($20 par value) | 4,000,000 | Factory Maintenance | 29,400 | ||
| Accumulated Depreciation-Factory Building and Equipment | 38,500 | Factory Power&Heat | 19,600 | ||
| Trade Accounts Payable | 264,500 | Insurance Expenses | 2,800 | ||
| Trade Accounts Receivable | 441,000 | Factory Renovation Cost | 50,000 | ||
| Building and Equipment | 491,000 | Factory Supplies Used | 13,400 | ||
| Finished Goods Inventory, January 1, 2018 | 28,500 | Indirect Manterials Used | 10,500 | ||
| Cash | 161,000 | Manufacturing Overhead | 144,200 | ||
| Bad Debt Expense | 6,500 | Beginning Work In Process | 75,000 | ||
| Direct Labor | 171,000 | Total Manufacturing Cost to account for | 577,000 | ||
| Advertising | 2,400 | Ending WIP | 21,000 | ||
| Factory Power and Heat | 19,600 | Cost of Goods Manufactured | 556,000 | ||
| Work in Process Inventory, January 1, 2018 | 75,000 | ||||
| Insurance Expense-Factory Building and Equipment | 2,800 | Beginning Finished Goods | 28,500 | ||
| Factory Renovation Cost | 50,000 | COGM | 556,000 | ||
| Depreciation-Factory Buildings and Equipment | 8,500 | Ending Finished Goods | 61,000 | ||
| Raw Materials Purchased | 200,000 | 523,500 | |||
| Interest Expense | 1,000 | Administrative Salaries | 99,000 | ||
| Sales Returns | 1,100 | Sales Delivery Expenses | 23,000 | ||
| Sales Discounts | 1,000 | Cost of Goods Sold | 401,500 | ||
| Indirect Factory Labor | 10,000 | ||||
| Indirect Material Used For Production | 10,500 | ||||
| Raw Material Inventory, January 1, 2018 | 6,600 | ||||
| Tropic Cal is examining the behaviour of the quarterly maintenance cost for budgeting purposes. | ||||||||
| Quarter | Machine Hours | Maintenance Cost | ||||||
| 1 | 100,000 | 240,000 | ||||||
| 2 | 135,000 | 300,000 | ||||||
| 3 | 75,000 | 100,000 | ||||||
| 4 | 150,000 | 185,000 | ||||||
| 5 | 95,000 | 180,000 | ||||||
| 6 | 120,000 | 150,000 | ||||||
| Question: | ||||||||
| 1. Estimate the cost function for the quarterly data using the high-low method | ||||||||
| To find the cost function, we can count first from the b (delta of cost divided by delta of machine hours): | ||||||||
| Answer: | ||||||||
| Machine Hours | Cost | |||||||
| Highest= | 150,000 | 185,000 | b=85,000/75,000= | 1.13333333333333 | ||||
| Lowest= | 75,000 | 100,000 | ||||||
| 75,000 | 85,000 | *The differences between highest and lowest | y=a+bx | *Try to count "a" by including the highest cost and highest machine hours in the function | ||||
| 185,000=a+1,13(150,000) | ||||||||
| Cost Function | a=15,500 | |||||||
| y=a+bx | ||||||||
| y=15,500+1,13x | *This is the cost function result for high-low method | |||||||
| 2. Tropic Cal anticipates that Foreign Corp will operate machine for 80,000 hours in quarter 7. Calculate the predicted maintenance cost in the quarter 7 | ||||||||
| y=15,500+1,13x | *Calculate the predicted maintenance cost by including the predicted hours for operating machine into the function | |||||||
| y=15,500+1,13(80,000) | ||||||||
| y=105,900 | ||||||||
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