Professional Documents
Culture Documents
1. 101299
Production Budget
budgeted sales
beginning
ending
units to be produced
March
11,800
15,730
April
12,100
15,730
15,470
11,840
May
11,900
15,470
14,820
11,250
June
11,400
14,820
15,600
12,180
July
12,000
15,600
15,860
12,260
August
12,200
April
354,00
0
363,00
0
May
357,00
0
June
342,00
0
60%
25%
9%
60%
25%
9%
60%
25%
9%
25%
April
May
June
July
206,028
88,500
31,860
211,266
90,750
32,670
207,774
89,250
85,500
333,876
329,694
May
June
236,80
0
225,00
0
243,60
0
54%
46%
54%
46%
54%
46%
127,872
108,928
121,500
103,500
131,544
112,056
230,428
235,044
54,450
-2,000
52,450
54%
46%
May
357000
53,550
-2,000
51,550
54%
46%
June
51,300
54%
reahdelmontegordo
24,127
27,837
23,713
26,622
Page 1 of 16
342000
-2,000
49,300
46%
following month
22,678
51,964
50,335
CASH BUDGET
May
June
Cash receipts
Collection of Accounts receivables
April
333,876
329,694
Cash Disbursements
Payment of Accounts payable due to purchases
Payment of Selling and Admin, expenses
Total Cash disbursement
230,428
51,964
282,392
235,044
50,335
285,379
51,484
5,500
44,315
56,984
56,984
101,299
5,500
2. 858600
Collection of Accounts Receivables
May
700,000
350,000
350,000
June
800,000
400,000
400,000
July
900,000
450,000
450,000
August
900,000
450,000
450,000
80%
18%
May
274,400
June
July
Aug
Sept
Oct
63,000
80%
18%
274,400
80%
18%
313,600
63,000
72,000
80%
18%
320,000
80%
18%
352,800
72,000
81,000
80%
18%
352,800
80%
18%
352,800
81,000
81,000
80%
18%
352,800
81,000
651,000
807,800
858,600
514,800
June
July
Aug
Sept
3. 433800
May
July
900,000
450,00
0
reahdelmontegordo
80%
18%
352,800
81,000
Page 2 of 16
450,00
0
80%
18%
352,800
81,000
352,800
433,800
81,000
4. 660000 or 690000
Production Budget
May
700,00
0
560,00
0
sales
80%
beginning
160,00
0
end
units to be produced
June
July
August
September
800,000
900,000
900,000
600,000
640,000
160,000
720,000
180,000
720,000
180,000
480,000
120,000
180,000
180,000
120,000
660,000
720,000
660,000
July
August
660,000
720,000
660,000
50%
50%
June
330,000
July
Aug
Sept
330,000
50%
50%
360,000
360,000
50%
50%
330,000
330,000
690,000
5. 3845
MATERIALS VARIANCES
Actual
Standard
5,405
5,280
125
unfavorable
Breakdown:
Material price variance
(AP-SP)AH
(1.15-1.1)4,700
235
unfavorable
(4,700-4,800)1.1
-110
favorable
870
unfavorable
LABOR VARIANCES
18,87
0
18,00
0
Actual
Standard
Breakdown:
Labor rate variance
(AR-SR)AH
(2.55-2.5)7,400
370
unfavorable
(7,400-7,200)2.5
500
unfavorable
reahdelmontegordo
Page 3 of 16
26,40
0
26,52
0
-120
favorable
25,23
4
25,90
0
-666
favorable
700
unfavorable
2,040
unfavorable
26,520
25,900
BASH
52,42
0
26,520
25,200
51,72
0
Volume variance
51,72
0
BASH
SHSR
24,480
25,200
49,68
0
3,845
6. 8000
Sales
Cost of Goods Sold
Total Manufacturing Cost
Direct
Materials
Beginning
65,000
Purchases
360,000
Ending
50,000
Direct Labor
Overhead
Cost of Goods Manufactured
Beginning FG
Ending FG
940,000
375,000
140,000
280,000
795,000
130,000
120,000
805,000
135,000
115,000
20,000
12,000
Net Income
8,000
7. 388.5 favorable
Materials Mix Variance
Actual Input at Standard price
Echol
26,600
0.2
Protex
12,880
0.425
reahdelmontegordo
5,320
5,474
Page 4 of 16
Benz
CT 140
37,800
7,140
0.15
0.3
5,670
2,142
18,606
18,994.5
(84,420x0.225)*
-388.5
*ASIC
Echol
Protex
Benz
CT 140
200
100
250
50
600
ASIC
40
42.5
37.5
15
135
135/600
*Actual Input
Echol
26,600
Protex
12,880
Benz
37,800
CT 140
7,140
Favorable
0.225
84,420
8. 94.5 unfavorable
Materials Yield Variance
Actual Input x ASIC
(84,4200 x 0.225)
Actual Output x ASOC (70,000 x 0.27)**
18994.5
18900
94.5
**ASOC
Echol
Protex
Benz
CT 140
ASOC
40
42.5
37.5
15
135
500
135/500
**Actual output
140 batches x 500-L batch
Unfavorable
0.27
70,000
9. 14000
Using weighted average,
(since we are dealing with actual returns)
Returns in process, Mar 1
Returns worked on in March
Total returns in process
200
825
1,025
Returns completed
Returns in process, Mar 31
Total returns processed
900
125
1,025
reahdelmontegordo
EUP
900
100
1,000
3,000
3,000
89,00
Page 5 of 16
0
45,00
0
Total cost to account for
Divided by EUP
Cost per unit of return
140,000
1,000
140
14,000
200
825
1,025
200
700
900
125
1,025
EUP
160
700
100
960
16000
favorable
2,000 lbs.
3,000 lbs.
P 3,000
2,000
Joint cost
Cost of by product:
using reversal cost method
SV
420000
Less:
APC
180000
CTS
10
Profit
42000
Total joint cost
Sales value
6,000,000 50%
6,000,000 50%
Allocation
1,821,005
1,821,005
3,642,010
3,840,000
197,990
3,642,010
Or, if P10 is spent to sell Wiz is assumed per unit price, then
Koo
2,000 lbs.
P 3,000
Lam
3,000 lbs.
2,000
Joint cost
Cost of by product:
using reversal cost method
reahdelmontegordo
Sales value
6,000,00
0 50%
6,000,00
0 50%
Allocation
1,826,000
1,826,000
3,652,000
3,840,00
0
Page 6 of 16
SV
Less:
APC
CTS
Profit
420000
180000
10000
42000
188,000
3,652,00
0
ABC
Total set-up cost
Divided by: Set-up cost per batch
Cost per hour
X Set-up cost per batch for Prod A
Total set-up cost
Divided by: Production Volume
Set-up cost per unit
60000
25000
2.4
2
4.8
60000
3000
20
1000
20000
2000
10
DM
4,320
9,150
11,27
5
3,225
6,500
2,750
37,22
0
DL
1,600
7,250
14,325
2,800
6,100
1,650
33,725
OH
1,950
5,550
12,30
0
2,250
4,800
1,470
28,32
0
Job order #
1001
1002
99265
99,265
5,000
104265
1003
1004
1005
1006
DM
4,320
9,150
DL
1,600
7,250
OH
1,950
5,550
11,275
3,225
6,500
2,750
14,325
2,800
6,100
1,650
12,300
2,250
4,800
1,470
37,220
33,725
28,320
14. 174.05
Cost of 8000 pairs
Less:
Spoilage
400 pairs-due to fault of the client
200 pairs-due to production
Total cost
Cost at 140%
Divided by: no. of acceptable pairs
Price per unit to be charged to client
960,000
16,00
0
24,00
0
40,000
920,000
1,288,000
7,400
174.05
15. 5359200
Using 2-way analysis
Controllable variance
reahdelmontegordo
Page 7 of 16
AFOH
BASH
1,200,000
4,147,200
Volume Variance
BASH
SHSR
(SQUEEZED)
5,323,200
5,347,200
24,000
unfavorable
5,347,200
5,359,200
12,000
favorable
16. 102900
RIP to FG
FG to CGS
Beg (5000-500)
Purchases
End (5250-650)
4,500
100,000
4,600
Beg (11,250-3,250)
RIP to FG
End (7,500-2,500)
99,900
8,000
99,900
5,000
102,900
17. 13468
Product
A
B
Sales
price
4.5
9
Units
2,000
4,000
Joint cost
Joint cost
By product (500 x P.40)
Final SV
9,000
36,000
APC
10,000
SV @ SO
9,000
26,000
35,000
%
0.26
0.74
allocation
4,732
13,468
18,200
18,000
200
18,200
18. 50000
Sales
Variable cost
Contribution margin
Fixed cost:
Avoidable
Unavoidable
Net Income
continue
50,000
34,000
16,000
16,000
21,600
-21,600
drop
0
0
0
0
0
21,600
-21,600
Sales
Variable cost (92000-37600)
Contribution margin
Fixed cost:
Avoidable
Unavoidable
80,000
54,400
25,600
%
100
68
32
16,000
21,600
19. 2.86
Quantity Schedule
Beg
6,000
SIP
15,000
UTAF
21,000
Units completed
Ending
Lost
UAAF
12,000
8,000
1,000
21,000
Mat
12,000
8,000
1,000
21,000
CC
12,000
6,000
750
18,750
Trans-in
21,000
Cost Data
reahdelmontegordo
Page 8 of 16
Beg
Current
TCTAF
Divided by EUP
15,500
39,500
55,000
2,500
5,500
8,000
21,000
1,000
5,000
6,000
18,750
12,000
29,000
41,000
21,000
0.38
0.32
1.95
2,573.33
2.6
5
0.2
1
2.86
20. 22000
Quantity Schedule
In process, beg
SIP
UTAF
Completed & transferred
Completed & on hand
End 1/4 (7/8 complete)
End 1/2 (1/2 complete)
End 1/4 (1/6 complete)
Lost - at the start
Lost - 50%
Lost - 80%
12,000
100,000
112,000
71,840
4,160
6,000
12,000
6,000
2,000
4,000
6,000
A
71,840
4,160
6,000
12,000
6,000
B
71,840
4,160
6,000
12,000
4,000
6,000
110,000
4,000
6,000
104,000
Differenc
e
C
71,840
4,160
6,000
6,000
88,000
22,000
21. 182800
WIP, beginning
Direct material (3000 units x P2.4/unit)
Direct labor (3000 units x P0.80 per unit)
Overhead (48 hours x P100)
Current manufacturing cost
Cost of goods placed in process
Less: WIP, ending
Direct material (2000 units x P2.4/unit)
Direct labor (2000 units x P0.80 per unit)
Overhead (32 hours x P100)
Cost of goods manufactured
Finished goods, beginning
Cost of goods available for sale
Less: Finished goods, ending
Direct materials
Direct labor
Overhead
COST OF GOODS SOLD
7,200
2,400
4,800
4,800
1,600
3,200
5,000
3,000
6,000
14,400
180,000
194,400
9,600
184,800
12,000
196,800
14,000
182,800
240,000
Page 9 of 16
210,000
30,000
A positive segment margin implies that it is profitable if the department is continued. Dropping or discontinuing the
department will have a negative effect on the companys income; that is, decrease by an amount equal to the
segment margin.
88,600
86,700
Variance
1,900 unfavorable
32,500
40,000
7,500
3.5
Difference in income
26,250
Effect in profits
-10000
8000
-2,000
Purchase price
Cost if part is made in-house
Fixed overhead saved if part is purchased
Rental income if part is purchased
Total cost
BUY
30,000
MAKE
20,000
6,000
2,800
30,000
28,800
27. 250000
1.20x + 800,000 = x + 850,000
1.20x - x = 850,000 - 800,000
0.20x = 50,000
reahdelmontegordo
Page 10 of 16
x = 250,000
WIP beginning
Total manufacturing cost
Cost of goods placed in process
Less: WIP ending
Cost of goods manufactured
300000
800,000
1100000
250,000
850,000
28. 22481.49
Beginning
Started and completed
Ending
Before
After
2,760.00
26,714.29
1,680.00
2,628.57
21,371.43
1,460.87
Evaporation loss
Evaporation
loss
131.43
5,342.86
219.13
5,693.42
Beginning
Started in process
2,760.00
28,613.42
31,373.42
Beginning
Started & completed
Ending
2,628.57
21,371.43
1,680.00
Evaporation Loss
5,693.42
31,373.42
EUP
525.71
21,371.43
584.35
22,481.49
29. 41600
30. 10800
31. 9000
Quantity Schedule
Beginning
Started in process
4,000
20,000
24,000
Mat
Beginning
Started & Completed
Completed
Ending
4,000
14,000
18,000
6,000
24,000
14,000
CC
1,000
14,000
6,000
2,000
20,000
17,000
Mat
CC
Trans-in
12,000
20,000
10,200
17,000
20,000
20,000
Cost data
Beginning costs
Current costs
Divided by EUP
reahdelmontegordo
4,600
22,200
Page 11 of 16
0.60
0.60
4,600
600
30,800
36,000
6,000
3,600
1,200
10,800
1.00
2.20
Cost Allocation
41,600
9,000
32. 484000
Work in process, beginning
Current manufacturing cost
Direct materials
Beginning
Purchases
Freight-in
Less: PRA
Less: Ending
Direct labor
Factory overhead
145,000
67,000
163,00
0
4,000
2,000
62,000
170,000
200,000
140,000
510,000
655,000
171,000
484,000
33. 1915200
Direct materials
Direct labor
Overhead
1,008,000
504,000
403,200
1,915,200
34. 66875.2
35. 21296
Mat
beginning
ending
CC
beginning
ending
reahdelmontegordo
68% complete
32% work to be done
25% complete
75% work to be done
60% complete
40% work to be done
40% complete
60% work to be done
Page 12 of 16
S&C
Received for A
50,000
In process, beg
12,000
62,000
22,000
12,000
28,000
1.1
Beginning
Cost to complete
Started and completed
Ending
Mat
816
307.2
CC
1,080
576
Trans-in
12,000
440
1056
19,800
Total
13,896
883.2
30,800
21,296
66875.2
36. 23130
Cost schedule
Mat
360
CC
630
Trans-in
18,00
Current cost
Total
2,790
20,34
0
4,020
4,320
12,000
23,13
0
4,380
4,950
13,800
Beginning
37. 402700
RIP to FG
FG to CGS
Beg
Purchases
Less: End
20,100
406,000
21,600
Beg
RIP to FG
Less: End
84,000
404,500
85,800
404,500
402700
38. 395000
Input:
Output:
2,500,000 pounds
3,500,000 pounds (2,500,000 pounds x 1.4)
3,500,000/100 = 35,000 x 12
1,250 tons x 20
420,00
0
(25,000)
395,000
39. 267500
Chemicals
Direct labor
Overhead
(25,000 x 7 x .4)
(35,000 x 3)
(35,000 x 1.5)
Additional costs
reahdelmontegordo
70,000
105,000
52,500
227,500
40,000
Page 13 of 16
267,500
Incremental Cost
40. 51000
Sell or process further?
Criteria:
If incremental revenue > incremental costs of further processing = PROCESS FURTHER
If incremental revenue < incremental costs of further processing = SELL AT SPLIT-OFF
Product
s
M
N
O
P
Final SP
180,000
132,000
52,000
12,000
SP @ SOP
80,000
36,000
10,000
-
Incremental revenue
100,000
96,000
42,000
12,000
Incremental costs
110,000
60,000
40,000
15,000
Incremental profit
(10,000)
36,000
2,000
(3,000)
If the companys decision as to whether to process further or not were incorrectly made for all products (that is,
those to be processed further are sold at split-off; and those to be sold at split-off are processed further), the
difference in income if the correct decision was followed is simply equal to the sum of all the incremental profits.
Products
M
N
O
P
Incremental profit
(10,000)
36,000
2,000
(3,000)
SHOULD BE done
sell
process
process
sell
51,000
SAS
SSS
62500
0.298
18625
18750
(62500 x 0.298)
(7500 + 11250)
grade 2
Mix
38%
Quantity
18,750
Price
22
MxQxP
(sas / sss)
156,750
grade 1
62%
18,750
12
139,500
grade 2
38%
18,625
22
155,705
grade 1
62%
18,625
12
138,570
296,25
0
294,27
5
1,975
unfavorable
reahdelmontegordo
(4,800)
Page 14 of 16
(6,000)
(10,800)
24,000
(10,800)
13,200
mall
72,000
(28,800)
43,200
(20,000)
downtown
(10,000)
total
72,000
28,800
43,200
30,000
23,200
(10,000)
13,200
43. 0.08 or 8%
Wait time
Inspection time
Process time
Move time
Queue time
17
0.4
2
0.6
5
25
reahdelmontegordo
0.08
Page 15 of 16
NOTE:
Akon la inin solutions guys.. so theres no 100% reliability..hehe..
Bsta pag may sayop, try to find way nla to solve it
Hope this will help you
Goodluck!
-rai
reahdelmontegordo
Page 16 of 16