Management Accounting _hand Out 111

8/3/2019 Management Accounting _hand Out 111

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MANAGEMENT

ACCOUNTINGTutor:

Nguyen truong Son


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PHN LOI CHI PH

CHI PH SN XUT

CHI PH QUN LDOANH NGHIP

CHI PH BN HNG

CHI PH TI CHNH

CHI PH NVL TRC TIP

CHI PH NHN CNGTRC TIP

CHI PH SN XUTGIN TIP

TNG CHI PH


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Quan h gia chi ph sn xutv sn phm

Chi ph nguyn vt liu

Chi ph nhn cng

Chi ph khc pht sinh

ti phn xng

Chi ph nhn

cng gin tip

Chi ph nhn

cng trc tip

Chi ph nguyn

vt liu trc tip

Chi ph nguyn

vt liu gin tip

Chi ph snxut chung

Sn phm

Tnh thng

Phn b

Tnh thng


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Chi ph vt liu chnhDirect materials used

Chi ph lao ng chnhDirect manufacturing labor

Chi ph sn xut chungIndirect manufacturing costs

Beginning working in process

Sn phm d dang u kEnding working in progress

Sn phm d dang cui k

Beginning Direct material inventory

Vt liu chnh tn kho u k

Cost of goods manufacturedThnh phm sn xut trong k

Beginning finished goods inventory

Thnh phm tn kho u kEnding finished goods inventory

Thnh phm tn kho cui k

Gi vn hng bnCosts of goods sold

Ending Direct material inventory

Vt liu chnh tn kho cui k

Direct materials purchased

Chi ph vt liu mua

Income StatementBo co thu nhp

Cost of goods manufacturedGi thnh sn xut


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BO CO LI L

nh dng ca bo co thu nhp ph thucvo hot ng kinh doanh ca doanh

nghip.


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COST OF GOODS

MANUFACTURED

Direct materialcosts

Direct laborcosts

Indirectmanufacturing costs

Work in process

Finished goods

Revenues

Cost of goods sold

Gross margin

Selling costs

Adninistrative costs

Net profit

Cost of good

available for

sales

Manufacture finished

Goods sold

Finished goods inventory

Period

cost


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COSTS INCURRED IN FOXWOOD COMPANY FOR THE YEAR ENDED DECEMBER 31, 2010

No. Description $

1Sandpaper 2,000

2 Materials-handling costs 70,0003 Lubricants and coolants 5,000

4 Miscellaneous indirect manufacturing labor 40,000

5 Direct manufacturing labor 300,000

6 Direct materials inventory Jan. 1, 2010 40,000

7 Direct materials inventory Dec. 31, 2010 50,000

8Finished goods inventory J

an. 1, 2010 100,000

9 Finished goods inventory Dec. 31, 2010 150,000

10Work-in-process inventory Jan. 1, 2010 10,000

11Work-in-process inventory Dec. 31, 2010 14,000

12Plant-leasing costs 54,000

13Depreciationplant equipment 36,000

14Property taxes on plant equipment 4,000

15Fire insurance on plant equipment 3,000

16Direct materials purchased 460,000

17Revenues 1,360,000

18Marketing promotions 60,000

19Marketing salaries 100,000

20Distribution costs 70,000

21Customer-service costs 100,000


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FOXWOOD COMAPANYSCHEDULE OF COST OF GOOD SOLD REQUIRED MANUFACTURED

FOR THE YEAR ENDED DECEMBER 31, 2010

* Direct material

Beginning Direct materials inventory Jan. 1, 2010 40,000Direct materials purchased 460,000

Cost of materials available for use 500,000

Less: Ending Direct materials inventory Dec. 31, 2010 50,000

Direct materials used (V) 450,000

* Direct labour

Direct manufacturing labor (V) 300,000

* Indirect manufacturing cost

Sandpaper (V) 2,000

Materials-handling costs (V) 70,000

Lubricants and coolants (V) 5,000

Miscellaneous indirect manufacturing labor (V) 40,000

Plant-leasing costs (F) 54,000

Depreciationplant equipment (F) 36,000

Property taxes on plant equipment (F) 4,000Fire insurance on plant equipment (F) 3,000

Production overhead 214,000

* Manufacturing costs incurred during 2011 964,000

Beginning Work-in-process inventory Jan. 1, 2010 10,000

Total manufacturing cost to account for 974,000

Less:Ending Work-in-process inventory Dec. 31, 2010 14,000

Cost of goods manufactured (to income statement) 960,000


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FOXWOOD COMAPANY

PROFIT AND LOST STATEMENT

FOR THE YEAR ENDED DECEMBER 31, 2010

Revenues 1,360,000

*Cost of good sold

Beginning Finished goods inventory Jan. 1, 2010 100,000

Finished goods manufactured 960,000

Cost of goods for sal

es 1,060,000Less: Ending Finished goods inventory Dec. 31, 2010 150,000

Cost of good sold 910,000

Gross Profit (Gross margin) 450,000

* Operating costs (Administration & Sales costs)

Marketing promotions 60,000

Marketing salaries 100,000Distribution costs 70,000

Customer-service costs 100,000

Operating costs 330,000

Net profit (operating income) 120,000


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EXPLAINATION


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EXPLAINATION


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MAGINAL COSTING& ABSORPTION COSTING


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Qproduct

QSelling


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TOTAL QUALITY

MANAGEMENT


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1. Material crapped 5% -> 3%

2. Material wasted when input to machine 4% -> 2.5%

3. Inspection and storage material $1/m24. Inspection equipment $250,000/period

5. Down graded product 12.5% ->7.5%5. Down graded product sold at a discount 30%

6. Production returned from customer 5% -> 2.5% of units delivered

7. Product liability 3% -> 1% of sales revenue

8. Machine idle 20% -> 12.5%

9. Admin, selling & distribution $600,000 -> $540,000 (10%)

10. Prevention program $200,000 -> $600,000

11. Machine Run Time 0.6 hrs -> 0.5 hrs

Direct materials A: 8 m2/unit & $40/m2

Machine time : 0.6 hrs/unit

Machine cost per hours : $400

Selling price : $1,000

Foxwood Co. makes and sales a single product; the unit specifications are as follows:


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Product6,000 pcs

(12.5/87.5:7.5/92.5)

Product5,250 pcs

(5/100:2.5/100)

Product5,000 pcs

Return from Customers (6.)Down graded: Final inspection (5.)

Material A48,000 m2

Material A50,000 m2

(4/96:2.5/97.5)

Material A

52,632 m2(5/95:3/97)

Scrapped mat. due to poor quality (1.) Processing loss (2.)

Machine hours (including idle Time)4,500 hrs.

(20/80:12.5/87.5)

Machine hours3,600 hrs

0.6hrs:0.5hrs

Machine Idle time (8.)


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(i) Statement showing total units before inspection, before and after introduction of TQM

Particulars Existing (units) After TQM program (units)

Total sales requirement 5,000 5,000

(6. ) Specification failure 5%, 2.5% 250 125

5,250 5,125(5. ) Down grading at inspection (12.5/87.5) x 5,250 750(5. ) Down grading at inspection (7.5/92.5) x 5,125 416

Total units before inspection 6,000 5,541

(ii) Purchase of material (sq. mtr)

Material required to meet pre-inspection Sq. Mtr (m2) Sq. Mtr (m2)

Production requirement

6000 units x 8 sq. Mtr : 5541 x 8 sq. Mtr 48,000 44,328

(2. ) Processing loss (after input to machine)(4/96) x 48,000 : 2.5/97.5 x 44,324 2,000 1,137

50,000 45,465

(1.) Scrapped material due to poor quality(5/95) x 50,000 : (3/97) x 45,465 2,632 1,406

52,632 46,871

(iii) Gross Machine Hours

Existing (hrs) After TQM program (hrs)

(11.) Initial requirement6000 units x 0.6 hrs : 5,5541units x 0.5 hrs 3,600 2,771

(8.) Idle time(20:80) x 3,600 : (12.5/87.5) x 2,771 900 396

4,500 3,167


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(b) Profit and Loss Account (before and after the implementation of TQM)

Before TQM program After TQM program

Sales revenue (5,000 units x 1,000) 5,000,000 5,000,000(5.) Sales down graded

750 * 1,000 * (1-30%*) 525,000416 * 1,000 * (1-30%*) 291,200

Total sales revenue 5,525,000 5,291,200

Less: CostMaterial: 52,632 x $40: 46,871 x $40 2,105,280 1,874,840

(3.) Inspection : 52,632 x $1: 46,871 x $1 52,632 46,871

(8.) Machine costs4,500 hrs x $400 1,800,000

3,167 hrs x $400 1,266,800

(4.) Inspection and other costFixed $ 250,000 (given) 250,000

60% of $250,000 150,000

(7.) Product liability and other claims

$5,000,000 * 3% 150,000$5,000,000 * 1% 50,000

(9.) Adm. Selling and Distribution$600,000 (given): $600,000 x 0.90 600,000 540,000

Preventive Programme(10.) $200,000 (given) : $600,000 (given) 200,000 600,000

Total cost 5,157,912 4,528,511Profit 367,088 762,689* Discount 30%


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252

56

42

12640.8

27

64

14

26

252

308

350

476

435.2

408.2

472.2

486.2

512.2

640

127.8

183.6

40.8

30.691.8

7.2

55

14

26

183.6

346.8374

450.2

436.2

381.2

476.2

550

73.8

14.00012.800 11.00010.200 11.400

40.8

13.6

224.4

255

June July

ABSORPTION COSTING METHOD


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252

56

42

99

64

14

26

252

308

350

476

435.2

408.2

472.2

486.2

512.2

640

117

183.6

40.8

30.6

99

55

14

26

183.6

346.8374

450.2

436.2

381.2

476.2

550

81.

14.00012.800 11.00010.200 11.400

224.4

255

June July

MAGINAL COSTING METHOD


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252

308

350

476

435

.2

408

.2

472

.2

486

.2

512

.2

640

252

5642

126

(40.8)

(27)

6414

26

640

Direct material

Direct wages

Variable production overhead

Fixed production cost

Closing stock

Under/over absorbed overhead

Variable selling expenseFixed selling expense

Fixed administration expense

Sales revenue

Direct material

Direct wages

Variable production overhead

Fixed production cost

Closing stockUnder/over absorbed overhead

Variable selling expense

Fixed selling expense

Opening stock

183.6

40.8

30.6

91.8

(13.6)(27)

55

14

40.8

(7.2)

183.6

346.8

374

450.2

436.2

381.2

476.2

550

224.4

255

Profit

June

July

ABSORPTIONCOSTINGMETHOD


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Documents

Management Accounting _hand Out 111