p 2-45

Comprehensive problem on unit costs, product costs

Atlanta Office Equipment manufactures and sells metal shelving. It began operations on January 1, 2017.
Costs incurred for 2017 are as follows (V stands for variable; F stands for fixed):

Direct materials used $149,500 V

Direct manufacturing labor costs 34,500 V
Plant energy costs 6,000 V
Indirect manufacturing labor costs 12,000 V
Indirect manufacturing labor costs 17,000 F
Other indirect manufacturing costs 7,000 V
Other indirect manufacturing costs 27,000 F
Marketing, distribution, and customer-service costs 126,000 V
Marketing, distribution, and customer-service costs 47,000 F
Administrative costs 58,000 F

Variable manufacturing costs are variable with respect to units produced. Variable marketing, distribution, and cu
Inventory data are as follows:
Beginning: January 1, 2017 Ending: December 31, 2017
Direct materials 0 lb 2,300 lbs
Work in process 0 units 0 units
Finished goods 0 units ? units

Production in 2017 was 115000 units. Two pounds of direct materials are used to make one unit of finished produ
Revenues in 2017 were $540000
The selling price per unit and the purchase price per pound of direct materials were stable throughout the year. T
is carried at the average unit manufacturing cost for 2017. Finished-goods inventory at December 31, 2017, was

Required 1. Calculate direct materials inventory, total cost, December 31, 2017.
2. Calculate finished-goods inventory, total units, December 31, 2017.
3. Calculate selling price in 2017.
4. Calculate operating income for 2017.

JAWAB:

1. 2 pounds direct material yang digunakan untuk membuat 1 unit finished goods
2 pound = 2 lbs
direct material used $ 149,500.00 direct material inventory
direct material used $ 230,000.00
per pound $ 0.65

2. Manufacturing Cost for 115.000 units

Variabel fixed
Direct Material Cost $ 149,500.00
Direct Manufacturing labor Cost 34500
Plant energy Cost 6000
Indirect Manufacturing labor Cost 12000 17000
Other Indirect Manufacturing Cost 7000 27000
 Cost of Goods Manufactured $ 209,000.00 $ 44,000.00

Average unit Manufacturing Cost :

253000 115000 $ 2.20 per unit

Finished goods Inventory in units

$ 15,400.00 $ 2.20 $ 7,000.00 per units

3. Unit sold = Beginning Inventory + production - Ending Inventory

= 0 + 115.000 - 7000
= 108000 units
Selling price di tahun 2017
= 540000 / 108000
= $ 5.00 per unit

4. Atlanta Office Equipment

Income Statement
For the Year Ended December 31, 2017
Revenues
Cost of units sold
Beginning finished goods inventory January 1, 2017
Cost of good Manufactured
Cost of goods available for sale
Ending finished goods Dec 31, 2017
Gross Margin ( or gross profit )
Operating Costs
Marketing, distribution and Customer-service cost

Administrative cost
Operating Income

E 10-23
Various cost-behavior patterns (CPA, adapted)
The vertical axes of the graphs below represent total cost, and the horizontal axes represent units
produced during a calendar year. In each case, the zero point of dollars and production is at the intersection of th

Select the graph that matches the numbered manufacturing cost data (requirements 1–9).
Indicate by letter which graph best fits the situation or item described. The graphs may be
used more than once.

JAWAB
1. K 6. L
2. B 7. F
3. G 8. K
4. J 9. C
5. I
E 10-24
Matching graphs with descriptions of cost and revenue behavior.
The horizontal axis of each graph represents the units produced over the year, and the vertical axis represents tot
Indicate by number which graph best fits the situation or item described (a–h). Some graphs may be
used more than once; some may not apply to any of the situations.

A Direct material costs

B Supervisors’ salaries for one shift and two shifts
C A cost–volume–profit graph
D Mixed costs—for example, car rental fixed charge plus a rate per mile driven
E Depreciation of plant, computed on a straight-line basis
F Data supporting the use of a variable-cost rate, such as manufacturing labor cost of $14 per unit produced
G Incentive bonus plan that pays managers $0.10 for every unit produced above some level of production
H Interest expense on $2 million borrowed at a fixed rate of interest
ations on January 1, 2017.

ble marketing, distribution, and customer-service costs are variable with respect to units sold

ecember 31, 2017

2,300 lbs
0 units
? units

to make one unit of finished product.

were stable throughout the year. The company’s ending inventory of finished goods
ntory at December 31, 2017, was $15400

1.495

g Cost for 115.000 units

Total
$ 149,500.00
34500
6000
29000
34000
 $ 253,000.00

er 31, 2017
$ 540,000.00

$ -
$ 253,000.00
$ 253,000.00
$ 15,400.00 $ 237,600.00
$ 302,400.00

$ 126,000.00
$ 47,000.00
$ 58,000.00 $ 231,000.00
$ 71,400.00

xes represent units

duction is at the intersection of the two axes.

ments 1–9).
phs may be
and the vertical axis represents total cost or revenues.
Some graphs may be

JAWAB
1
6
9
2
8
st of $14 per unit produced 10
some level of production 3
8