Reference no: EM133136787
Question - The following are some data taken from the accounting records of PT. Eternal Health in 2021:
Purchase of raw materials IDR 400,000,000
Direct labor 525,000,000
Indirect labor 230,000,000
Salaries of sales and administration employees 270,000,000
Building depreciation * 200,000,000
Other selling and administrative expenses 420.000.000
Miscellaneous factory costs 700,000,000
Sales revenue (price per unit IDR 325,000) 3.250,000,000
* 75% of the building is used for production activities and the rest for sales and administrative functions
Inventory data:
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January 1, 2021
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December 31, 2021
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Raw material
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IDR 33,000,000
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IDR 38,000,000
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In-process inventory
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85,000,000
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135,000,000
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Finished goods *
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220,000,000
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191.200.000
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* Finished goods inventory consists of 1,375 units on January 1, 2021 and 1,195 units on December 31, 2021
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Required -
1. What is the total production cost in 2021?
2. What is the total prime cost and total conversion cost in 2021?
3. What is the total product cost (inventoriable cost) and the total periodic cost (period cost) in 2021?
4. Explain what the impact on the company's financial reporting if there is a misclassification of a cost that should be a periodic cost but is recognized as a product cost.
5. What is the total cost of goods manufactured in 2021?
6. What is the total cost of goods sold in 2021?
7. If management calculates costs for 2021 with the cost object being the production division, what is the total direct costs?
8. Which of the costs in the company behaves as variable costs, fixed costs, and mixed costs. Explain your argument.