Tugas Akutansi Management1

Cost Identification, and Analysis; Cost Assignment; Income Statement Melissa Vassar has decided to open a printing shop. She has secured two contracts. One is a five-year contract to print a popular regional magazine. This contract calls for 5,000 copies each month. The second contract is a three-year agreement to print tourist brochures for the state. The state tourist office requires 10,000 brochures per month Melissa has rented a building for $ 1,400 per month. Her printing equipment was purchased for $ 40,000 and has a life expectancy of 20,000 hours with no salvage value. Depreciation is assigned to aperiod base on the hours of usage. Melissa has scheduled the delivery of the products so that two productin runs are needed. In the first run, the equipment is prepared for the magazine printing. In the second run, the equipment is reconfigured for the brochures repinting. It takes twice as long to configure the equipment for the magazine setup as it does for the brochure setup. The total setup costs per month are $ 600 Insurance costs for the building and equipment are $ 140 per month. Power to operate the printing equipment is strongly related to machine usage. The printing equipment causes virtually all the power costs. Power costs will run $ 350 per month. Printing materials will cost $ 0.40 per copy for the magazie and $ 0.08 per copy for brochure. Melissa will hire workers to run the presses as needed (part-time workers are easy to hire). She must pay $ 10 per hour. Each orkers can produce 20 copies of the magazine per printing hour or 100 copies of the brochure. Distribution costs are $ 500 per month. Melissa will receive a salary of $ 1,500 per month. She is responsible for personnel, accounting, sales, and production- in effect she is responsible for coordinating and managing all aspects of the business. Required: 1 What are the total monthly manufacturing costs? 2 What are the total montly prime costs? Total monthly prime costs for the regional magazine? for the brochure? Did you use direct tracing?, driver tracing, or allocation to assign costs to each product? 3 What are total monthly conversion costs? Suppose that Melissa wants to determine monthly conversion costs for each product. Assign monthly conversion costs to each product using direct tracing and driver tracing whenever possible. For those costs that cannot be assigned using a tracing approach, you may assign them using direct labor hours. 4 If Melissa receives $ 1.80 per copy of the magazine and $ 0.45 per brochure, how much will her income be for the first month of operations? (Prepare an income staement) Answer: 1 The datas where has known: a Contracts - Five years 5,000 copy per month for magazine - Three years 10,000 copy per month for brochure b Rent a building and equipment : $ 1,400/month c Purchased equipment $ 40,000 (life time 20,000 hours, no salvage) d Delivery setup time: Magazine two time compare brochure, where total cost/month $ 600 e Insurance for building and equipment $ 140/month f Power costs $ 350/month (all virtually for printing) g Printing materials: - Magazine : $ 0.4/copy - Brochure : $ 0.08/copy h Direct labour: $ 10/hour - Magazine : 20 copies/worker/hour - Brochure : 100 copies/worker/hour i Distribution cost : $ 500/month

Edward Silalahi NPM: 05.2.0019 MM UNRI Angkatan VII

2 Calculation a Hours usage per month Magazine: (5000 copies/month)/(20 copies/hour) = 250 hours/month Brochure : (10000 copies/month)/(100 copies/hour) = 100 hours/month Total hours per month = 350 hours/month b

c

d

e

f

g

h

3

Rent building and equipment Magazine: 250 hours/350 hours x $ 1,400/month = $ 1,000/month Brochure : 100 hours/350 hours x $ 1,400/month = $ 400/month Total = $ 1,400/month Depreciation Depriciation $ 40,000/20,000 hours = $ 2/hour Magazine: 250 hours/month x $ 2/hour = $ 500/month Brochure : 100 hours/month x $ 2/hour = $ 200/month Setup cost Magazine: Brochure : Insurance Magazine: Brochure : Power Magazine: Brochure : Direct material: Magazine: Brochure :

= 2/3 x $ 600/month = $ 400/month = 1/3 x $ 600/month = $ 200/month Total = $ 600/month 250 hours/350 hours x $ 140/month = $ 100/month 100 hours/350 hours x $ 140/month = $ 40/month Total = $ 140/month 250 hours/350 hours x $ 350/month = $ 250/month 100 hours/350 hours x $ 350/month = $ 100/month Total = $ 350/month $ 0.4/copy x 5,000 copies/month = $ 2,000/month $ 0.08/copy x 10,000 copies/month = $ 800/month

Direct Labor: Magazine: ($ 10/hour)/(20 copies/hour) x 5,000 copies/month = $ 2,500/month Brochure : ($ 10/hour)/(100 copies/hour) x 10,000 copies/month = $ 1,000/month Calculation Cost of Goods Manufactured (answered no 1) Magazine ($) Brochure ($) 1 Direct Material 2,000 800 2 Direct Labor 2,500 1,000 3 Overhead: Rent build and equipt. 1000 400 Depriciation 500 200 Setup cost 400 200 Insurance 100 40 Power 250 100 Total overhead costs 2,250 940 4 Total manufacturing cost 6,750 2,740 5 Cost of Goods Manufactured (COGM) 1.35 0.27

Edward Silalahi NPM: 05.2.0019 MM UNRI Angkatan VII

4

Answer number 2 The total monthly prime cost: (Total direct material + total direct labor): direct material 2000 800 direct labor 2500 1000 Total monthly prime cost 4500 1800 Total monthly prime cost magazine Total monthly prime cost brochure

5

$ 4,500/month $ 1,800/month

Answer number 3 The total monthly conversion costs: (Total direct labor + total overhead): direct labor 2500 1000 overhead 2250 940 Total monthly prime cost 4750 1940

6

6300

6690

Answer number 4 Income Statement if Melissa sell $ 1,8/copy magazine and $ 0,45/copy brochure Sales: Less: Cost of Goods Manufactured Direct Material Direct Labor Overhead Gross Margin Less: Operating Expenses: Distribution Administration Income before taxes

a

b

b

c

Note: Sales: Magazine: Brochure: Total:

13500 2800 3500 3190

500 1500

9490 4010

2000 2010

$ 1.80/copy x 5,000 copies = $ 9,000 $ 0.45/copy x 10,000 copies = $ 4,500 = $ 13,500

Direct material costs Magazine: Brochure: Total:

$2,000 $800 $2,800

Direct labor costs Magazine: Brochure: Total:

$2,500 $1,000 $3,500

Overhead costs: Magazine: Brochure: Total:

$2,250 $940 $3,190

Edward Silalahi NPM: 05.2.0019 MM UNRI Angkatan VII