TERMS YOU NEED TO KNOW!

DIRECT COST
INDIRECT COST
DIRECT MATERIAL
DIRECT LABOUR
MANUFACTURING OH
PRODUCT COST / INVENTORIABLE COST/ COST OF INVENTORY
PERIOD COST/ NON-INVENTORIABLE COST
COGM
COGS
WIP
PRIME COST
CONVERSION COST
FINISHED GOODS INVENTORY
SCHEDULE OF COGM
DIRECT MATERIAL COST
BEG INV OF DM/ RM 10,000
PURCHASES OF DM/ RM 205,000
LESS: PURCHASES RETURN OF DM/RM (5,000) 200,000
ADD: CARRIAGE INWARDS OF DM/RM 4,000
ADD: IMPORT DUTIES OF DM/ RM 2,000 6,000
COST OF DM/ RM AVAILABLE FOR USE 216,000
LESS: END INV OF DM / RM (15,000)
COST OF DM/ RM USED 201,000
ADD: DIRECT LABOUR 169,000
PRIME COST 370,000
ADD: MANUFACTURING OVERHEAD
INDRECT MATERIAL 2,000
INDIRECT LABOUR 3,000
FACTORY INSURANCE 5,000
FACTORY UTILITIES 6,000
FATCORY RENTAL 8,000
OVERTIME PREMIUM 12,000
COST OF IDLE TIME 4,000
DEPRECIATION EXP OF FACTORY NCA 7,000
FACTORY SUPPLIES COST 9,000 56,000
TOTAL MANUFACTURING COST 426,000
ADD: BEG WIP 24,000
TOTAL WIP DURING THE YEAR 450,000
LESS: END WIP (20,000)
COGM 430,000

P / L STATEMENT
SALES 900,000
LESS: COGS
BEG IN OF FG 30,000
ADD: COGM 430,000
LESS: END INV OF FG (12,000)
COGS (448,000)
GROSS PROFIT 452,000
LESS: OPERATING EXPENSE
OFFICE INSURANCE 3,000
OFFICE UTILITIES 4,000
OFFICE RENTAL 5,000
DEPRECIATION EXP OF OFFICE NCA 6,000
OFFICE SUPPLIES COST 7,000
ADVERTISING 8,000
SALARY OF OFFICE STAFFS 9,000
CARRIAGE OUTWARDS ETC. 10,000 (52,000)
NET PROFIT 400,000
SCHEDULE OF COGM
DIRECT MATERIAL COST
BEG INV OF DM/ RM 150,000
PURCHASES OF DM/ RM 300,000
COST OF DM/ RM AVAILABLE FOR USE 450,000
LESS: END INV OF DM / RM (210,000)
COST OF DM/ RM USED 240,000
ADD: DIRECT LABOUR [80%*250000] 200,000
PRIME COST 440,000
ADD: MANUFACTURING OVERHEAD
INDIRECT LABOUR [20%*250000] 50,000
INDIRECT MATERIAL [20%*240,000] 48,000
EQUIPMENT REPAIRS [80%*10000] 8,000
RENTAL FACTORY 20,000
FACTORY UTILITIES 11,000
OVERTIME PREMIUM 4,000
COST OF IDLE TIME 1,000
DEPRECIATION - FACT EQU [80%*15000] 12,000
OTHER OVERHEAD 40,000 194,000
TOTAL MANUFACTURING COST 634,000
ADD: BEG WIP 150,000
TOTAL WIP DURING THE YEAR 784,000
LESS: END WIP (180,000)
COGM 604,000

P / L STATEMENT
SALES 900,000
LESS: COGS
BEG IN OF FG 200,000
ADD: COGM 604,000
LESS: END INV OF FG (300,000)
COGS (504,000)
GROSS PROFIT 396,000
LESS: OPERATING EXPENSE
EQUIPMENT REPAIRS [20%*10000] 2,000
RENTAL - OFFICE 15,000
DEPRECIATION - OFF BUILDING 80,000
DEPRECIATION - OFF FURNITURE 5,000
DEPRECIATION - OFF EQUIP [20%*15000] 3,000
SELLING & ADMIN COST 50,000 (155,000)
NET PROFIT 241,000
A DIRECT MATERIAL COST
BEG INV 60,000
PURCHASE 750,000
RETRUN (10,000) 740,000
800,000
END INV (95,000)
DIRECT MAT COST 705,000

B DIRECT LABOUR COST = 60%*400000 = 240,000

C MANUFACTURING OVERHEAD
COST OF IDLE TIME 13,000
DEPN - BUILDING [80%*18000] 14,400
DEPN - FACT VEHICLE 90,000
FIRE INS - FACT (80%*60000) 48,000
INDIRECT MATERIAL [15%*705000] 105,750
INDIRECT LABOUR [40%*400000] 160,000
MAINTENANCE - BUILDING [80%*90000] 72,000
OVERTIME PREMIUM 25,000
UTILITIES [70%*45000] 31,500
559,650

D PRIME COST
DIRECT MATERIAL COST 705,000
DIRECT LABOUR COST 240,000
945,000

E CONVERSION COST
DIRECT LABOUR COST 240,000
MOH 559,650
799,650
F. COGM
DIRECT MATERIAL 705,000
DIRECT LABOUR 240,000
MOH 799,650
TOTAL MANUFACTURING COST 1,744,650
ADD: BEG WIP 35,000
LESS: END. WIP (50,000)
COGM 1,729,650

G COGS
BEG INV - FG 70,000
COGM 1,729,650
END INV - FG (80,000)
COGS 1,719,650
H PERIOD COST
DEPN - OFF BUILDING [20%18000] 3,600
DEPN - OFF FURNITURE 56,000
FIRE INSURANCE - OFFICE [20%*60000] 12,000
MAINTENANCE BUILDING [20%*90000] 18,000
SELLING EXP 75,000
UTILITIES - OFFICE [30%*45000] 13,500
178,100

I GROSS PROFIT
SALES 1,000,000
LESS: COST OF GOODS SOLD (1,719,650)
GROSS LOSS (719,650)

J NET PROFIT
GROSS LOSS (719,650)
LESS: OPERATING EXP (178,100)
NET LOSS (897,750)
A. PDOR = BUDGETTED OH / BUDGETTED MH
$750,000 / 50,000MH
$ 15.00

B. JOURNAL ENTRIES (NO: 1,2,3,4,5,7&8)

DR MATERIAL INVENTORY 20,000
CR ACC PAYABLE 20,000 1
[PURCHASE OF DIRECT MATERIAL]
DR WIP INVENTORY 12,000
CR MATERIAL INVENTORY 12,000
2
[3,000+3,500+5,500]
[DIRECT MATERIAL USED FOR PRODUCTION]
DR WIP INVENTORY 9,000
CR WAGES PAYABLE 9,000
3
[(200+250+300)*$12]
[DIRECT LABOUR COST INCURRED]
DR WIP INVENTORY 16,500
CR MANUFACTURING OVERHEAD 16,500
TO CALCULATE APPLIED OH: 4
= PDOR (FROM PART A) * ACTUAL MH
[(350+420+330)*$15
[OVERHEAD APPLIED TO PRODUCTS]
DR MANUFACTURING OVERHEADS 36,600
CR MATERIAL INVENTORY 1,100
CR WAGES PAYABLE 3,000
CR INSURANCE PAYABLE 2,500 5
CR ACCUMULATED DEPRECIATION 6,000
CR FACT RENTAL PAYABLE [80%] 24,000
[ACTUAL MOH INCURRED]
DR FINISHED GOODS INVENTORY 36,700
CR WIP INVENTORY 36,700
[COST OF COMPLETED GOODS TRF TO FG INV - LOO & MOO]
IN ORDER TO CALCULTAE COST OF COMPLETED GOOD, 7
WE HAVE TO PREPARE A JOB COST SHEET

COST PRICE
DR COST OF SALES 36,700
CR FG INVENTORY 36,700
[COST OF LOO & MOO THAT IS SOLD]

SELLING PRICE
DR ACC RECEIVABLE 90,000
CR SALES REVENUE 90,000
 [SALES OF LOO & MOO]

D. STEP: 6
OVERHEAD VARIANCE = ACTUAL OVERHEAD (5) - APPLIED OH (4)
SCENARIO 1:
ACTUAL OH (10,000) - APPLIED OH (8,000)
2,000 (UNDERAPPLIED) ACTUAL > APPLIED

UNDERAPPLIED $2,000 = YOU HAVE TO INCREASE THE COST OF GOODS SOLD

DR COST OF SALES 2,000
CR MANUFACTURING OH 2,000

SCENARIO 2:
ACTUAL OH (7,000) - APPLIED OH (8,000)
1,000 (OVERAPPLIED) ACTUAL < APPLIED

OVERAPPLIED $1,000 = YOU HAVE TO DECREASE THE COST OF GOODS SOLD

DR MANUFACTURING OH 1,000
CR COST OF SALES 1,000

QUESTION (D)
ACTUAL OH - APPLIED OH
36,600 - 16,500
20,100 (U)

DR COST OF SALES 20,100

CR MANUFACTURING OH 20,100
/ BUDGETTED MH
E. WIP INV A/C
BAL B/D 20,000 FG INV 36,700
MATERIAL INV 12,000 BAL C/D 20,800
WAGES PAYABLE 9,000
MOH 16,500
57,500 57,500

© JOB COST SHEET: LOO MOO

WIP B/D 12,000 -
DIRECT MAT 3,000 5,500
DIRECT LAB 2,400 3,600
OH APPLIED 5,250 4,950
TOTAL 22,650 14,050
36,700
OODS SOLD

OODS SOLD
A. PDOR = BUDGETTED OH / BUDGETTED MH
$800,000 / 80,000MH
$ 10.00

JOURNAL ENTRIES (NO: 1,2,3,4,5,7&8)

B DR WIP INVENTORY 110,000

CR MATERIAL INVENTORY 110,000
[35K+30K+45K]
[DIRECT MATERIAL USED FOR PRODUCTION]
C DR WIP INVENTORY 3,200
DR MOH 800
CR WAGES PAYABLE 4,000
[(200+250+300)*$12]
[DIRECT LABOUR COST INCURRED]
D DR WIP INVENTORY 4,250
CR MANUFACTURING OVERHEAD 4,250
TO CALCULATE APPLIED OH:
= PDOR (FROM PART A) * ACTUAL MH
[(190+110+125)*$10
[OVERHEAD APPLIED TO PRODUCTS]

E ACTUAL OH - APPLIED OH
[800+900+500+700+350] - 4,250
3,250 - 4,250
1,000 (O)

DR MOH 1,000
CR COST OF SALES 1,000

F IF OVERHEAD IS ALLOCATED BASED ON DLH:

APPLIED OH: PDOR * ACTUAL DLH
APPLIED OH: [BUD OH/BUD DLH] * ACTAUL DLH
APPLIED OH: [800,000/100,000]*(120+150+130)
APPLIED OH: 3,200

ACTUAL OH - APPLIED OH
[800+900+500+700+350] - 3,200
3,250 - 3,200
50 (U)

DR COST OF SALES 50
 CR MOH 50

G DR FINISHED GOODS INVENTORY 125,150

CR WIP INVENTORY 125,150
[COST OF COMPLETED GOODS TRF TO FG INV - SILVER & PLATINUM]
IN ORDER TO CALCULTAE COST OF COMPLETED GOOD,
WE HAVE TO PREPARE A JOB COST SHEET

H COST PRICE
DR COST OF SALES 102,290
CR FG INVENTORY 102,290
[COST OF GOLD & PLATINUM THAT IS SOLD]

SELLING PRICE
DR ACC RECEIVABLE 150,000
CR SALES REVENUE 150,000
[SALES OF LOO & MOO]
/ BUDGETTED MH
I. WIP INV A/C
BAL B/D 85,000 FG INV 125,150
MATERIAL INV 110,000 BAL C/D 77,300
WAGES PAYABLE 3,200
MOH 4,250
202,450 202,450
© JOB COST SHEET: SILVER PLATINUM
WIP B/D 40,000 -
DIRECT MAT 35,000 45,000
DIRECT LAB 960 1,040
OH APPLIED 1,900 1,250
TOTAL 77,860 47,290
125,150
HOURS WORKED: 350 HOURS

NORMAL HOURS: 270 HOURS * $40 = 10,800

OT HOURS: 80 * [$40 + (50%*$40)] = 4,800
WAGES PAYABLE 15,600

DOUBLE ENTRY:
DR WIP 12,440
DR MAN OH (*) 3,160
CR WAGES PAYABLES 15,600

(*) MOH
OVERTIME PREMIUM
OUT OF 80 HOURS OVERTIME, ONLY 50 HOURS IS RETALED TO
GENERAL = MOH! REMAINING 30 WILL BE IGNORED!
50 HOURS * (50% * $40) = 1,000

COST OF IDLE TIME: [20%*270 HOURS] * $40 = 2,160

3,160
HOURS WORKED: 600 HOURS

NORMAL HOURS: 450 HOURS * $50 22,500

OT HOURS: [150 HOURS * ($50 + (75%*$50)) 13,125
WAGES PAYABLE 35,625

DOUBLE ENTRY:
DR WIP 28,625
DR MAN OH (*) 7,000
CR WAGES PAYABLES 35,625

(*) MOH
OVERTIME PREMIUM
OUT OF 150 HOURS OVERTIME, ONLY 120 HOURS IS RELATED TO
GENERAL = MOH! REMAINING 30 WILL BE IGNORED!
OVERTIME PREMIUM: 120 * (75%*$50) = 4,500

COST OF IDLE TIME: 50 HOURS * $50 2,500

TOTAL MOH 7,000
A factory produces 25,000 units with a total cost of $300,000 and total fixed cost of RM100,000.
a. What is the variable cost incurred?
b. If 30,000 units were produced, (i) what is the total fixed cost, (ii) total variable cost & (iii) total cost

A. TOTAL COST = TVC + TFC

300,000 = TVC + 100,000
TVC = 200,000
VC PER UNIT: 200,000 /25,000 = $ 8.00 PER UNIT

B. TFC = 100,000

TVC = 30,000 * 8 = 240,000

TC = TFC + TVC
100,000 + 240,000 = 340,000
) total cost
A factory produces 40,000 units with a total cost of $500,000 and total fixed cost of RM200,000.
a. What is the variable cost incurred?
b. If 45,000 units were produced, (i) what is the total fixed cost, (ii) total variable cost & (iii) total cost

A. TOTAL COST = TVC + TFC

500000 = TVC +200,000
TVC = 300,000
VC PER UNIT: 300,000 /40,000 = $ 7.50 PER UNIT

B. TFC = 200,000

TVC = 45,000 * 7.5= 337,500

TC = TFC + TVC
200,000+337,500 537,500
) total cost
1 DIRECT MATERIAL COST
BEG INV - MAT 70,000
PURCHASE 200,000
C.INWARDS (10% * 200K] 20,000
290,000
LESS: END INV - MATERIAL (80,000)
D.MAT COST 210,000
D.LABOUR [80%*240K] 192,000
402,000

2 MANU OH
OVERTIME PREMIUM 20,000
DEPN - FACT MACH 10,000
DEPN - FACT VEHICLE [75%*30K] 22,500
FACT SPACE RENTAL 30,000
IND MATERIAL [30%*210000] 63,000
IND LABOUR [20%*240K] 48,000
REPAIRS - VEHICLE (75%*28K] 21,000
SUPPLIES COST - FACTORY 5,000
UTILITIES - FACT [80%*50K] 40,000
259,500

3 CONVERSION COST
DIRECT LABOUR 192,000
MAN OH 259,500
451,500

4 COGM
PRIME COST 402,000
MOH 259,500
TOTAL MANUFCURING COST 661,500
ADD: BEG WIP 80,000
LESS: END WIP (100,000)
COGM 641,500

5 COGS
BEG INV - FG 180,000
COGM 641,500
END INV - FG (150,000)
671,500

6 PERIOD COST
DEPN EXP - VEHICLE (25%*30000) = 7,500
DEPNEXP - OFF FURNITURE 15,000
REPAIR - VEHICLE (25%*28000) = 7,000
 MARKETING EXP 110,000
UTILITIES [20%*50000) 10,000
149,500

7 NH: 160 * $20 3,200

OT: 30 * [20 + (50%*20)] 900
4,100

8 MOH
OR PREMIUM [(30-10)*(50%*20)] 200
IDLE TIME: 16 * 20 320
520

9 NONE OF THE ABOVE.

10 SALES 2,800,000
COS (1,980,000)
820,000

11 TOTAL MANU COST 1,450,000

BEG WIP 350,000 = 1.5M+300K-1.45M
END WIP (300,000)
COGM 1,500,000

13 FC 12,000
VC 18,000
30,000

19 JOB COST SHEET RED DEVILS

WIP B/D 10,000 20,000
D.MAT 20,000 25,000
D/LAB 1,000 1,200
MOH 2,375 1,375
33,375 47,575
80,950

21 WIP INV
B/D 30,000 FG INV 80,950
MAT INV 67,000 BAL B/D 24,400
D LAB 3,100
MOH APPLIED 5,250
105,350 105,350
\
22 ACTUAL OH
INDIRECT MATERIAL 1,000
INDIRECT LABOUR 1,200
FACT REPAIRS 800
ACCU DEPN 600
OTHER FACT OH 1,200
4,800
 Normal Direct
Q1 hrs 40 Q2 labor 648 (40-4)*$18
Wage $ 18 Overhead 72 4*18
Total $ 720

regular regular
wages $ 16 q1 wages $ 640 40*$16
OT wages $ 24 OT wages $ 120 5*$24
OT
premium $ 8 Total $ 760 640+120

OT Direct
q2 premium $ 8 q3 labor $ 720 45*$16
Total $ 40 Overhead $ 40 5*$8
$ 760 $720+$40
 ALEXANDRIA ALUMINUM COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 20X1

Sales Revenue $ 1,105,000

Less: COGS 1.COGS = beg FGI + COGM - end FGI
150K+?-165K

2. COGM = Beg WIP +[ DM + DL + MOH] - End WIP

120K + [400K +
(40-4)*$18

bài này ko có idle time

GM - end FGI

L + MOH] - End WIP

+