Nabila Indri Yani
2010931037
Tugas Analisis dan Estimasi Biaya
2-3 Cost Definitions
Avery Corporation’s northwestern factory provided the following information for the last calendar
year:
Beginning inventory:
Direct materials $50,800
Work in process 58,500
Ending inventories:
Direct materials $21,500
Work in process 23,500
During the year, direct materials purchases amounted to $150,000, direct labor cost was $200,000, and
overhead cost was $324,700. There were 100,000 units produced.
Required:
1. Calculate the total cost of direct materials used in production.
Answer:
Direct materials used = $50,800 + $150,000 – $21,500 = $179,300
2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost.
Answer:
Direct materials........................................................... $179,300
Direct labor................................................................. 200,000
Overhead ..................................................................... 324,700
Total manufacturing cost............................................ $704,000
Add: Beginning WIP ................................................. 58,500
Less: Ending WIP ...................................................... (23,500)
Cost of goods manufactured....................................... $739,000
Unit cost of goods manufactured = $739,000/100,000 = $7.39
3. Of the unit manufacturing cost calculated in Requirement 2, assume $1.70 is direct materials and
$3.24 is overhead. What is the prime cost per unit? Conversion cost per unit?
Answer:
Direct labor = $7.39 – $1.70 – $3.24 = $2.45
Prime cost = $1.70 + $2.45 = $4.15
Conversion cost = $2.45 + $3.24 = $5.69
2-5 Cost of Goods Manufactured and Sold
Beckman Company manufactures staplers. At the beginning of November, the following information
was supplied by its accountant:
Direct materials inventory $48,500
Work in process inventory 10,000
Finished goods inventory 10,075
During November, direct labor cost was $22,000, direct materials purchases were $70,000, and the
total overhead cost was $216,850. The inventories at the end of November were:
Direct materials inventory $15,900
Work in process inventory 6,050
Finished goods inventory 8,475
Required:
1. Prepare a cost of goods manufactured statement for November.
Answer:
Direct materials:
Beginning inventory.............................. $ 48,500
Add: Purchases ..................................... 70,000
Materials available.................................$118,500
Less: Ending inventory.......................... (15,900)
Direct materials used in production ....... $ 102,600
Direct labor........................................................ 22,000
Manufacturing overhead ................................... 216,850
Total manufacturing costs added ...................... $ 341,450
Add: Beginning work in process....................... 10,000
Less: Ending work in process............................ (6,050)
Cost of goods manufactured.............................. $ 345,400
2. Prepare a cost of goods sold schedule for November.
Answer:
Cost of goods manufactured.................................................... $ 345,400
Add: Beginning finished goods inventory .............................. 10,075
Cost of goods available for sale............................................... $ 355,475
Less: Ending finished goods inventory ................................... (8,475)
Cost of goods sold ................................................................... $ 347,000
2-6 Prime Cost, Conversion Cost, Preparation of Income Statement: Manufacturing Firm
Photo-Dive, Inc., manufactures disposable underwater cameras. During the last calendar year, a total of
270,000 cameras were made, and 274,000 were sold for $8 each. The actual unit cost per camera
produced during the year is as follows:
Direct materials $2.25
Direct labor 1.50
Variable overhead 0.65
Fixed overhead 0.70
Total unit cost $5.10
Research and development expenses amounted to $70,000. The selling expenses consisted of a
commission of $0.25 per unit sold and advertising copayments totaling $36,000. Administrative
expenses, all fixed, equaled $83,000. There were no beginning and ending work-in-process inventories.
Beginning finished goods inventory was $30,600 for 6,000 cameras.
Required:
1. Calculate the number of cameras in ending finished goods inventory and their costs.
Answer:
Beginning finished goods inventory.............................. 6.000
Production……………………………………………… 270.000
Available……………………………………………….. 276.000
Sold……………………………………………………..(274.000)
Ending finished goods inventory………………………. 2.000 unit
2. Prepare a cost of goods sold statement for last year.
Answer:
Direct materials = $ 2.25 x 270,000 = 607,500
Direct labor = $ 1.50 x 270,000 = 405,000
Overhead-variable = $ 0.65 x 270,000 = 175,000
Overhead-fixed = $ 0.70 x 270,000 = 189,000
Total manufactured cost added $1.377,000
Beginning work in process 0
Ending work in process 0
Cost of goods manufactured $1.377,000
Beginning finished goods inventory = 6,0000 x $ 5.1 = 30,600
$1.407,600
Ending finished goods inventory =2,000 x $ 5.1 = (10,000)
Cost of goods sold $1.397,400
3. Prepare an absorption-costing income statement for last year.
Answer:
