Reference no: EM131762814
The Principles of Cost Accounting Assignment Tasks
Task 1 - Find the financial operational result using the variable costing according to given data:
- Fixed manufacturing cost - 25 000 €
- Standard (normal) volume of manufactured products during one year - 16 000 units
- Variable cost - 14 € per unit
- Price - 18 € per unit
|
Specification
|
I quarter of a year
|
II quarter of a year
|
III quarter of a year
|
IV quarter of a year
|
|
Beginning inventory
|
0
|
|
|
|
|
Production (units)
|
4 100
|
4 000
|
3 800
|
4 200
|
|
Sale (units)
|
4 000
|
4 000
|
3 600
|
4 000
|
|
Ending inventory (closing inventory)
|
|
|
|
|
|
Specification
|
I
|
II
|
III
|
IV
|
|
1)
|
Revenue
|
|
|
|
|
|
2)
|
Variable manufacturing costs
|
|
|
|
|
|
3)
|
Beginning inventory
|
|
|
|
|
|
4)
|
Ending inventory
|
|
|
|
|
|
5)
|
Variable cost of goods sold
|
|
|
|
|
|
6)
|
Contribution margin
|
|
|
|
|
|
7)
|
Fixed cost
|
|
|
|
|
|
8)
|
Operating income
|
|
|
|
|
Task 2 & 3 - KET Co. manufactures two types of metal kettles: A and B in two production departments: Machining and Painting. The company's production output and sales quantities and other basic data for current year are below:
|
Specification
|
Kettle A
|
Kettle B
|
|
Annual production and sales (units)
|
140 000
|
120 000
|
|
Direct material (zl per unit)
|
60
|
70
|
|
Direct labor hours per unit in Machining Department
|
1
|
1
|
|
Direct labor hours per unit in Painting Department
|
2
|
3
|
|
Direct labor hour rate (zl per unit)
|
13
|
17
|
|
Machine time in Machining Department (hours per unit)
|
1
|
2
|
Budgeted overhead costs in both departments are as follows:
- Machining Department 1 600 000 zl,
- Painting Department 1 200 000 zl.
The following activities and cost drivers have been identified:
|
Activity
|
Overhead cost (zl)
|
Quantity of cost driver
|
Budgeted level of cost driver
|
|
Kettle A
|
Kettle B
|
|
Machine set-ups
|
85 000
|
850 set-ups
|
500
|
350
|
|
Material handling
|
650 000
|
650 000 kg of material
|
200 000
|
450 000
|
|
Paint working
|
2 000 000
|
500 000 labor hours
|
250 000
|
250 000
|
|
Quality control
|
65 000
|
325 inspections
|
200
|
125
|
Required: Calculate the total production cost per unit each kettle using:
a) Departmental overhead rate using direct machining hours for Machining Department and direct labor hours for Painting department (task 2 - job order costing)
b) Applied overhead rate under activity-based costing system (task 3 - ABC)
Task 4 - The company produces two types of products: A and B, which difference in a weight: A - 2 kilograms [kg], and B - 5 kg. Products are manufactured by the same raw material, in the same production process.
|
Direct materials
|
120 000 PLN
|
|
Conversion cost
|
145 300 PLN
|
|
Product A
|
Product B
|
|
Number of units
|
Percentage of manufacturing
|
Number of units
|
Percentage of manufacturing
|
|
Costs of current period
|
300
|
-
|
220
|
-
|
|
Work in process at the beginning of the period
|
80
|
25%
|
120
|
60%
|
Direct materials are issue at the beginning of the production process.
Required: Find the unit cost of a ready product A and B products as well as the unit cost of work in process.
Task 5 - The company produces the homogeneous product. At the end of current month total costs amounted 140 000€ and were value as follows:
- direct materials 221 000 €
- direct labour 170 000 €
- manufacturing overhead costs 185 000 €.
During the current month, 10 000 units of finished goods were produced and transferred to a storehouse, except 4 000 units which were only partly complete (25% - stage of completion). In previous month entire production was finished.
Required: Establish the unit cost of completed and partly completed products if:
1. Direct materials were issue successfully during the production process.
2. Direct materials were the issue at the beginning of production process.
Attachment:- Assignment File.rar