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Management Accounting Set 1

Aarhus University Management Acounting tutorials

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Julia Świerczyńska
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26 views7 pages

Management Accounting Set 1

Aarhus University Management Acounting tutorials

Uploaded by

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

Exercise 2.18

Operating profit:

Revenue−Cost of goods sold−Operating cost =Operating profit


Cost of goods sold:

Opening finished goods+Goods Manufactured−Closing finished goods


Cost of goods manufactured:

Opening WIP + Direct Materials Used+ Direct Manufacturing Labour+ Indirect Manufacturing Costs−Closing
Direct materials used:

Beginning Direct Materials Purchased−End Direct Materials

All amounts in milion:

Schedule of Cost of Goods Manufactured

Direct Materials

Direct materials, 1 January 15


Purchases of direct materials 325
(-) Direct materials, 31 December -20
Direct materials used 320

Direct manufacturing labour

100 = Direct Manufacturing Labour

Total manufacturing overhead = Indirect manufacturing costs:

Indirect Manufacturing Labour 60


Plant supplies 10
Plant utilities 30
Depreciation 80
Plant supervisor labour 5
Miscellaneous 35
Indirect Manufacturing Costs 220
Cost of goods manufactured:

Work in progress, January 2018 10


Direct materials used 320
Direct manufacturing labour 100
Total manufacturing overhead 220
(-) Work in progress, December 2018 -5
Cost of goods manufactured 645

Income statement:

Revenue 950
(-) Cost of goods sold 660
(-) Marketing, distribution and customer service -240
Gross profit 50

Exercise 2.22

1)

Units Direct materials Total DM used Total cost Cost per kg DM


pr unit (kg)
100.000 2kg (100.000*2kg) = 280.000$ (280.000/200.000)
200.000kg = 1,40$

Direct materials
Closing stock (kg) Closing stock $
2000 kg 1,40 * 2000 kg = 2.800 $

2)

Closing stock, finished goods: 41.940 $

Production in 2022: 100.00 units

Average price per unit: 466.000/100.000 = 4,66

Finished goods stock= 41.940$ / 4,66 = 9000 units


3)

Revenue: 873.600$

Sold units (Units produced - Finished goods stock) = 100.000 - 9.000 = 91.000

Selling price per unit (Revenue / Sold units) = 873.600 / 91.000 = 9.6 $

4)

Operating profit:

Revenue 873.600
Opening finished goods 0
(-) Cost of goods manufactured 466.000
Closing finished goods 41.940
Gross margin 449.540
Operating costs:
Marketing (V) 245.700
Marketing (F) 80.000
Administrative costs 100.000
Operating profit: 23.840

Exercise 2.23

Estimates for the year:

Sales: 122.000

Closing stock 31 Dec.

Materials: 0 units

WIP: 0 units

Finished goods: 0 units


Production needed:

Opening stock: 9.000

Production needed: ?

Expected sale: 122.000

Desired closing sale: 12.000

Production needed: 12.000 + 122.000 - 9.000 = 125.000

Income statement

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