Example 6.2. Determination of the financial result in the system "direct costing".

From the answer to issue in the form of a table with the following data (table.
6.2):
Table 6.2: production and sale of products enterprise

Indicator
volume of production, units
volume of sales, units
Price per unit, UAH
Variable costs per unit, / UAH unit:
production
for selling and administrative
Fixed costs, UAH:
production
for selling and administrative

april
1200
1200
15
7
2
4000
1200

Solution. Response is expedient to issue in the form of a table. 6.3.

Indicator
Total revenue
The cost of production

Sum, UAH
18 000
8 400

Manufacturing contribution margin

9 600

Variable operating (non-production)

2 400

Contribution margin

7 200

Fixed costs

5 200

Profit (loss) of the enterprise

2000

Stage I. Total revenue Variable cost of production = Manufacturing

contribution margin
18 000 8 400 = 9600 (UAH);
Stage II. Manufacturing contribution margin variable operating costs = total
contribution margin :
9 600 21 200 = 7 200 (UAH);
Stage III. Profit (loss) of the enterprise = total contribution margin fixed costs:
7 200 5 200 = 2000 (UAH).

1.2 During the month the enterprise produces and sells three products (A, B, C) at
conditions (table. 6.4):
Table 6.4 Indicators of production and sales
Indicators
beginning inventory, units
units sold
units produced
direct material, UAH
direct labour, UAH
other variable costs of production, UAH
fixed costs of production, UAH
fixed administrative costs, UAH
variable cost for selling and administrative ,
UAH
advertising costs, UAH
Selling price, UAH

4000
10 000
8000
2400
3200
6400
4000

Products

2000
3600
2000
2400
1200
2400
3000
5100

1500
4000
5000
900
600
1500
2100

3000

1440

800

2000
4,0

1080
6,0

400
2,0

Using the method of "direct costing" , compute the financial result from the sale of
products.
2.1 On the basis of the following data (table. 6.5), determine unknown on
indicators (thousand UAH).

indicatiors

variant

Revenues

1
120

2
480

The finished goods inventory at the beginning of month

15

60

The semi-finished items inventory at the beginning of month

50
2
8

costs for the month:

) direct material costs ;
) direct wages;
) manufacturing overhead

13
0
54
36

1
8
4
2

Total costs

The semi-finished items inventory at the end of month

13

68

Production cost

83

The finished goods inventory at the end of month

18

Cost of sales

250

Profit

Allow the algorithm for computing unknown parameters and comment on them.
2.1 Using the method developed "direct-costing", compute :
a) contribution marginal of the enterprise; b) the net income of the company.
Data for calculations (UAH) :
1. Revenues 92 160
2. Depreciation of equipment and premises shop 4 160
3. Raw materials and basic materials 25 410
4. Wage of production workers 14 410
5. The cost of lighting and heating shop 10 280
6. Electricity for technological needs 8600
7. Maintenance of equipment 3720
8. Advertising costs and sales 3200
9. Administrative expenses 2600
3.1 During the month the enterprise produces and sells two products (A, B) at

conditions (table. 6.6):

Table 6.6 Indicators of production and sales

Indicators
beginning inventory, units
units sold
units produced
direct material, UAH
direct labour, UAH
other variable costs of production, UAH
fixed costs of production, UAH
fixed administrative costs, UAH
variable cost for selling and administrative ,
UAH
advertising costs, UAH
Selling price, UAH

4000
10 000
8000
2400
3200
6400
4000

Products

2000
3600
2000
2400
1200
2400
3000
5100

3000

1440

2000
4,0

1080
6,0

Using the method of "absorption costing" , compute the financial result from the
sale of products.