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Cost - Accounting - Group Assignment 1

This document contains three cases related to cost accounting for a furniture manufacturer. Case 1 provides details on direct raw material costs including quantities and costs of different types of wood purchased. It asks to calculate the cost per unit of each material and the total direct material cost for a product. Case 2 provides direct labor hours and rates, factory overhead budget and actual costs. It asks to calculate direct labor, indirect labor and overhead costs per unit. Case 3 provides account balances and production details to prepare a cost of goods manufactured statement and income statement.

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Maldin Jeremia
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89 views3 pages

Cost - Accounting - Group Assignment 1

This document contains three cases related to cost accounting for a furniture manufacturer. Case 1 provides details on direct raw material costs including quantities and costs of different types of wood purchased. It asks to calculate the cost per unit of each material and the total direct material cost for a product. Case 2 provides direct labor hours and rates, factory overhead budget and actual costs. It asks to calculate direct labor, indirect labor and overhead costs per unit. Case 3 provides account balances and production details to prepare a cost of goods manufactured statement and income statement.

Uploaded by

Maldin Jeremia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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CASE 1

DIRECT RAW MATERIAL COSTS

Minang Jati Furniture Inc. manufactures and sells house furnitures made from Jepara’s jati. In July 20XX,
the company purchased direct raw material – Jati Wood as follows:

Type of Jati Wood Quantities Purchased Weight Purchase Price per m³


2 x 3 cm 10 m³ 3 ton Rp 5.000.000
4 x 6 cm 8 m³ 4 ton Rp 7.000.000
5 x 7 cm 7 m³ 6 ton Rp 10.000.000
5 x 10 cm 5 m³ 7 ton Rp 25.000.000

The company paid freight in for Rp 5.000.000 and insurance expense for Rp 1.000.000. Freight in and
insurance expenses were assigned to each kind of direct raw material inventory using cost driver –
weight, and purchase value respectively.

Required:
a. Determine the cost per m3 for each kind of direct raw material
b. In Juli 20XX, the company produced 5 sets of “Classic Model” chair and used direct raw materials as
follows:
Kind of Jati Wood Quantities Used
2 x 3 cm 5 m³
4 x 6 cm 4 m³
5 x 7 cm 3 m³
5 x 10 cm 2 m³

How much direct raw material cost per set of “Classic Model” chair?

c. Make journal entries related to th acquisition and the usage of direct raw material costs using
perpetual systems and phisical systems

CASE 2
DIRECT LABOR COST AND FACTORY OVERHEAD COST

Minang Jati Furniture Inc. manufactures and sells house furnitures made from Jepara’s jati. Direct labor
wage is Rp Rp 10.000 per direct labor hour. In addition, the company also pays Rp 25.000 per day for
meal allowance. The company also withholds 5% and 2% of gross pay for personal income tax and BPJS
Ketenagakerjaan respectively. In July 20XX (25 working days), units produced and direct labor hours
(DLH) were as follows:

Product Units Produced Working Hours


Classic Chair 5 sets 500 DLH
Classic Cupboard 2 units 200 DLH
Classic Table 4 sets 100 DLH

Budgeted factory overhead costs for year 20XX were Rp 90.000.000. The company has a normal capacity
of 10.000 DLH. Actual factory overhead cost for July 20XX were Rp 9.750.000 including indirect labor
costs.

Required:
d. How much direct labor costs and indirect labor costs?
e. How much direct labor cost per unit for each kind of product?
f. How much factory overhead cost per unit for each kind of product?
g. Make journal entries related to labor costs and factory overhead costs

CASE 3
COST OF GOODS MANUFACTURED STATMENT
AND INCOME STATEMENT

Data obtained from Takuban Perahu Inc.’s general ledgers for year 20XX are as follows:

Direct raw material inventory, January 1, 20XX 10.000.000


Purchase return of direct raw material 200.000
Accounting receivable 15.000.000
Direct labor costs 8.000.000
Administration and general expenses 21.000.000
Indirect raw material costs 500.000
Work in process inventory, January 1, 20XX 5.000.000
Sales 77.000.000
Direct raw material inventory, December 31, 20XX 5.500.000
Indirect labor costs 780.000
Direct raw material purchases 15.500.000
Cash 200.000
Insurance expenses of factory building 1.000.000
Depreciation expenses of factory building 6.000.000
Factory other expenses 700.000
Work in process inventory, December 31, 20XX 10.120.000
Marketing expenses 18.000.000

Units completed and transferred to finished goods inventory for year were 1.300 units. Finished
goods inventory on January 31, 20XX were Rp 3.000.000 for 100 units. Sales for year were
1.200 units. Cost of ending finished goods inventory is calculated using FIFO method.

Required:
Prepare cost of goods manufactured statement and income statement

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