QUESTIONS

1. In a period which began with zero inventories, how should Uniyton assign the production
output (400,000 units) of 20 batches to the sales ordes (400,000 units)? The idea here is to
construct a “produced as/sold as” matrix.

2. Compute the per unit costs for rectifiers in the 400 series under an average costing system
and under a relative sales value system.

3. Questions A & B
a. What would be the revenue, cost and profit if the order for 6,000 401’s were
accepted for immediate shipment:
i. Under a physical unit costing system
ii. Under a relative sales value costing system

b. What should Helen Barnes recommend to Jim Jacoby regarding this order? Why?

4. What should she recommend regarding the offer from the toy company?

5. Which method of allocating joint costs should Unitron use? Which method yields better
data for decision-making? Consider the behavioral implications of the two different
approaches.

6. A government purchasing agent has just inquired again about the “cost plus” purchase
contract for 100,000 of 404’s. The contracting official had stated that a 10% profit marging
would probably be allowable, if the price were “right” ($7.5, or so). How much is the cost?
What are your thoughts about the price and manufacturing startegy for this possible
contract? Assuming excess manufacturing capacity is available, would you recommend
bidding on this contract? If so, at what price?

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Berikut merupakan informasi yang diketahui dari case study Unitron Corporation:

Manufacturing Process
Purchased raw material 50 Silicon wafers
Bake at 1200 degrees celsius with special gasses
Cut into 100,000 very small chips
Manufacture a "chip sandwich" Lose 40,000 chips in manufacturing
Test for 60,000 chips for electrical characteristics
There is random distribution of product specifications

Aveage distribution Regular Product Line

Scrap (in units) #401 #402 #403 #404 #405 Total
35,000 4,500 6,000 4,500 3,000 2,000 20,000

Regular product line

("seconds")
(in units)
5,000
of series #400

SERIES #400 Rectifiers

Annual Sales Current Annual

Product Blockage Max. Voltage Orders Sales Price / Unit Inventory Production
(unit) (units) (units)
#401 0.25 - 0.74 300 100,000 $0.40 3,000 90,000
#402 0.75 - 1.24 400 140,000 $0.60 10,000 120,000
#403 1.25 1.74 500 100,000 $0.70 9,000 90,000
#404 1.75 - 2.24 600 40,000 $0.80 8,000 60,000
#405 2.25 - 2.75 700 20,000 $1.00 5,000 40,000
TOTAL 400,000 35,000 400,000

Product Cost Data for Series #400 Rectifiers

Annual Costs
Batch Costs:
Direct Materials 2,500
Direct Labor 1,600
Variable Overhead 2,300
Total costs per batch 6,400
Total batches per year 20
Total costs per year 128,000
Nonvariable rectifiers
Manufacturing Costs* 32,000
General Factory Overhead
Costs* 40,000
Total Manufacturing Costs 200,000
*) Allocated to #400 series rectifiers based on direct labor costs

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1. Produced as/Sold as Matrix
Regular Product Line
#401 #402 #403 #404 #405 Total
Produced as 90,000 120,000 90,000 60,000 40,000 400,000
Sold as 100,000 140,000 100,000 40,000 20,000 400,000
Additional Used Unit 10,000 30,000 40,000 20,000

2. Perhitungan cost per unit dengan menggunakan 2 (dua) pendekatan, yaitu:

a. Average costing system
b. Relative Sales Value approach

Regular Product Line

AVERAGE COST SYSTEM #401 #402 #403 #404 #405 TOTAL
Total Production Cost $ 200,000
Total Unit Produced 400,000
Average Cost $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50
Price / Unit $ 0.40 $ 0.60 $ 0.70 $ 0.80 $ 1.00
Profit per unit $ (0.10) $ 0.10 $ 0.20 $ 0.30 $ 0.50
% of sales -25% 17% 29% 38% 50%
% of profit -20% 20% 40% 60% 100%

Regular Product Line

RELATIVE SALES VALUE #401 #402 #403 #404 #405 TOTAL
Price / Unit $ 0.40 $ 0.60 $ 0.70 $ 0.80 $ 1.00
Unit Sold 100,000 140,000 100,000 40,000 20,000 400,000
Total Sales / Unit $ 40,000 $ 84,000 $ 70,000 $ 32,000 $ 20,000 $ 246,000

Sales Value:
Total Production Cost $ 200,000
Total Sales / Unit $ 246,000
% Relative Sales Value 18.70% 18.70% 18.70% 18.70% 18.70%

1 - % RSV 81.30% 81.30% 81.30% 81.30% 81.30%

Cost / Unit RSV $ 0.33 $ 0.49 $ 0.57 $ 0.65 $ 0.81
Profit per unit $ 0.07 $ 0.11 $ 0.13 $ 0.15 $ 0.19
% of Sales 18.70% 18.70% 18.70% 18.70% 18.70%
% of profit 23.00% 23.00% 23.00% 23.00% 23.00%

RELATIVE SALES VALUE Regular Product Line

at Split-Off #401 #402 #403 #404 #405 TOTAL
Price / Unit $ 0.40 $ 0.60 $ 0.70 $ 0.80 $ 1.00
Unit Sold 100,000 140,000 100,000 40,000 20,000 400,000
Total Sales Price / Unit $ 40,000 $ 84,000 $ 70,000 $ 32,000 $ 20,000 $ 246,000

Sales Value:
Total Production cost 200,000
Sales value as Split Off 16.26% 34.15% 28.46% 13.01% 8.13% 100.00%
Total Sales Value / Unit 32,520 68,293 56,911 26,016 16,260 200,000
Sales Value / Unit $ 0.33 $ 0.49 $ 0.57 $ 0.65 $ 0.81
Profit per unit $ 0.07 $ 0.11 $ 0.13 $ 0.15 $ 0.19
% of Sales 19% 19% 19% 19% 19%
% of profit 23% 23% 23% 23% 23%

3.
a. Perbandingan order 401 dengan 6,000 unit dengan menggunakan average costing
system dan relative sales value approach:

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 Physical Relative SV
Sales Order #401 6,000 6,000
Sales Price $ 0.40 $ 0.40
Total Sales Price $ 2,400.00 $ 2,400.00

Sales Order #401 6,000 6,000

Cost Unit #401 $ 0.50 $ 0.33
Total Cost $ 3,000.00 $ 1,951.22

Profit / Loss $ -600.00 $ 448.78

b. Kami merekomendasikan Helen Barnes 2 (dua) alternatif. Alternatif pertama, yaitu

dengan pengalokasian 6,000 unit dari rectifiers seri #401 dan #402.
Apabila Unitron Corporation menggunakan cost dari #401 untuk mengukur loss atau
profit dari penjualan order tersebut, maka cost yang timbul tidak bersifat aktual atau
yang semestinya. Namun, apabila perushaan menggunakan 2 (dua) jenis cost (#401 dan
#402), maka perusahaan tidak akan mencapai positive gross margin.

RELATIVE SALES VALUE #401 #402 Total PHYSICAL #401 #402 Total
Sales Order (in unit) 6,000 Sales Order (in unit) 6,000
Sales Price $ 0.40 $ 0.40 Sales Price $ 0.40 $ 0.40
Total Sales 2,400 Total Sales $ 2,400.00

Sales Order Allocation 3,000 3,000 6,000 Sales Order Allocation 3,000 3,000 6,000
Cost of #401 #402 $ 0.33 $ 0.49 Cost of #401 #402 $ 0.50 $ 0.50
Total Cost of #401 #402 $ 976 $ 1,463 $ 2,439 Total Cost of #401 #402 $ 1,500 $ 1,500 $ 3,000
Profit / Loss of #401 Sales $ (39) Profit / Loss of #401 Sales $ (600)

% of Cost 81.30%
Total Cost of #401 #402 $ 1,951.22
Profit / Loss $ 448.78

Alternatif kedua, yaitu dengan menambah jumlah yang diproduksi untuk memenuhi
order tersebut.
Annual Costs + Additional batch
Batch Costs:
Direct Materials $ 2,500
Direct Labor $ 1,600
Variable Overhead $ 2,300
Total costs per batch $ 6,400
Total batches per year 20 21
Total costs per year $ 128,000 $ 134,400
Nonvariable rectifiers
Manufacturing Costs* $ 32,000 $ 32,000
General Factory Overhead
Costs* $ 40,000 $ 40,000
Total Manufacturing Costs $ 200,000 $ 206,400
*) Allocated to #400 series rectifiers based on direct labor costs

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 Regular Product Line
#401 #402 #403 #404 #405 Total
Produced as 90,000 120,000 90,000 60,000 40,000 -
Additional Production 4,500 6,000 4,500 3,000 2,000 400,000
Total Production 94,500 126,000 94,500 63,000 42,000 400,000
Sales 100,000 140,000 100,000 40,000 20,000 420,000
Additional Sales 6,000 - - - - 6,000
Total Sales 106,000 140,000 100,000 40,000 20,000 406,000
Additional Used Unit 10,000 30,000 40,000 20,000
Current Inventory 3,000 10,000 9,000 8,000 5,000
Inventory Hold 1,500 26,000 43,500 51,000 27,000 149,000

Inventory 149,000
% Inventory Charge 2%
Carrying Cost 2,980

Total Annual Sales $ 406,000

Average Sales / Month $ 33,833

Berdasarkan perhitungan di atas, Unitron Corporation sebaiknya tidak melakukan

reproduksi unit karena produksi lain akan menambah jumlah inventory dibandingkan
sebelumnya dan sekitar 3 (tiga) kali dari jumlah penjualan per bulannya. Oleh karena
itu, perusahaan sebaiknya menjual produk tersebut dan menghitung biayanya dengan
menggunakan biaya #401.
Selain itu, kami merekomendasikan agar Unitron menggunakan Relative Sales Value
dan mengalokasikan cost of unit nya menggunakan persentase sales value nya,
walaupun hal ini secara tidak langsung akan berdampak pada biaya produknya
(tercampur). Dari segi profit, menggunakan metode Relative Sales Value lebih
menguntungkan karena adanya profit sebesar $448, sementara menggunakan average
costing menghasilkan rugi sebesar $600.

4. Toy Company

Sales / Unit $ 0.15

Purchase Order / Month 4,000
Purchase Order / Year (Annual) 48,000
Production Cost / Unit from Production Manager $ 0.32
Additional Sales / Month $ 600
Annual Other Income $ 7,200

Sebelumnya, dimana Unitron memproduksi 100,000 units “second”, Unitron hanya mampu
menjual 35% dari hasil produksi tersebut, dengan harga $ 0.25. Adapun perusahaan
menerima offering tersebut, maka perusahaan akan menghasilkan $ 7,200 per tahunnya
tanpa biaya, karena semua production cost sudah dialokasikan ke 20,000 regular product
line untuk product #401.

Berikut adalah perhitungan gross margin apabila “seconds” dimasukkan ke dalam joint
costs, maka persentase gross profit bertambah 2% menjadi 21% (sebelumnya 19%):

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 Assuming if "seconds" are included to the cost sharing:
Total Revenue #400s $ 246,000
Total Revenue All $ 253,200
Total Production Cost $ 200,000
Gross Proft $ 53,200
% GP / Sales 21%
Walaupun item “seconds” tidak akan di charge terhadap inventory value, penjualannya
akan tetap menambah jumlah income di financial statement.

Relative sales value pada dasarnya lebih baik atau preferable dibandingkan physical mix
output, karena pembebanan atas joint cost akan lebih actual atau proporsional dibandingkan
dengan physical method. Adapun dampak yang terlihat dari kedua metode ini yaitu dari
segi profit per unit nya. Perhitungan cost dengan metode RSV tidak akan muncul kecuali
revenue yg dihasilkan dapat menanggung cost tersebut. Selain itu, dengan menggunakan
metode RSV, cost yang dihasilkan akan mengikuti fluktuasi dari market value.
Namun, metode ini tidak dapat digunakan dalam membuat keputusan harga jual barang,
sehingga dalam keputusan itu manager harus melanjutkan penghitungan dengan metode
lain.

5. Government Bidding:

Physical RSV
Sales Order #404 100,000 100,000
Sales Price $ 0.75 $ 0.75
Total Sales Price $ 75,000 $ 75,000
Margin Profit 10% 10%
"Cost" $ 0.68 $ 0.68
Cost Unit #401 $ 0.50 $ 0.65
Difference $ 0.18 $ 0.02

Acceptable price = Cost unit x 110%

Harga yang diajukan oleh pemerintah ($0.75) dianggap acceptable karena masih dalam
range 10% untuk % persentase profit.