Nama : Fioren Akbar Naufal

NIM : 19312384
Kelas : F
Mata Kuliah : Akuntansi Biaya

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 $140,000 V

Direct manufacturing labor costs 22,000 V
Plant energy costs 5,000 V
Indirect manufacturing labor costs 18,000 V
Indirect manufacturing labor costs 14,000 F
Other indirect manufacturing costs 8,000 V
Other indirect manufacturing costs 26,000 F
Marketing, distribution, and customer-service costs 120,000 V
Marketing, distribution, and customer-service costs 43,000 F
Administrative costs 54,000 F
Variable manufacturing costs are variable with respect to units produced. Variable marketing, distribution,
and customer-service costs are variable with respect to units sold.
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 ? Unit
Finished goods 0 units ? Unit

Production in 2017 was 100,000 units. Two pounds of direct materials are used to make one unit of finished
product.
Revenues in 2017 were $473,200. The selling price per unit and the purchase price per pound of direct
materials were stable throughout the year. The company’s ending inventory of finished goods is carried at
the average unit manufacturing cost for 2017. Finished-goods inventory at December 31, 2017, was $20,970.
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.

ANSWER :
1. 2 pounds of direct materials are used to make product.
100.000 × 2 lbs = 200.000 lbs.
direct materials per pounds
$140.000 ÷ 200.000 lbs = $0,70
Ending Inventory = 2.300 lbs × $ 0,70 = $1,610

2. Manufacturing Cost for 100.000 units

 Variable Fixed
Direct Materials Costs $ 140.000 $-
Direct Manufacturing labor costs $ 22.000 $-
Plant energy costs $ 5.000 $-
Indirect manufacturing labor costs $ 18.000 $ 14.000
Other indirect manufacturing costs $ 8.000 $ 26.000
Cost of goods manufactured $193.000 $ 40.000

Average unit manufacture = Total cost of good manufactured ÷ per unit

= $ 233.000 ÷100.000 units
= $ 2,33 per unit

Finished goods inventory in units = $ 20.970 ( Desember 31,2017) ÷ $ 2,33 per unit
= 9.000 unit

3. Unit sold in 2014 = Beginning Inventory + Production - Ending Inventory

= 0+115.000-7.000 = 108.000
Selling Price in 2014 = $ 540.000 ÷ $ 108.000
= $ 5.00 per unit

Atlanta Office Equipment

Income Statement
Year Ended Desember 31,2017
(in thousands)

Revenue
Cost of unit sold :
Beginning finished goods, January1,2017 $0
Cost of goods manufacture $ 233.000
Cost of goods available for sale $ 233.000
Ending Finished goods, Desember 31, 2017 $ 20.970
Gross Margin
Operating costs :
Marketing, distribution, and costumer-service costs $ 163.000
Administrative costs $ 54.000
Operating income

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 the
two axes.
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.
1. Annual depreciation of equipment, where the amount of depreciation charged is computed by the
machine-hours method.
2. Electricity bill—a flat fixed charge, plus a variable cost after a certain number of kilowatt-hours
are used, in which the quantity of kilowatt-hours used varies proportionately with quantity of units
produced.
3. City water bill, which is computed as follows:

First 1,000,000 gallons or less $1,000 flat fee

Next 10,000 gallons $0.003 per gallon used
Next 10,000 gallons $0.006 per gallon used
Next 10,000 gallons $0.009 per gallon used
and so on and so on

The gallons of water used vary proportionately with the quantity of production output.
4. Cost of direct materials, where direct material cost per unit produced decreases with each pound of
material used (for example, if 1 pound is used, the cost is $10; if 2 pounds are used, the cost is $19.98; if
3 pounds are used, the cost is $29.94), with a minimum cost per unit of $9.20.
5. Annual depreciation of equipment, where the amount is computed by the straight-line method. When
the depreciation schedule was prepared, it was anticipated that the obsolescence factor would be
greater than the wear-and-tear factor.
6. Rent on a manufacturing plant donated by the city, where the agreement calls for a fixed-fee payment
unless 200,000 labor-hours are worked, in which case no rent is paid.
7. Salaries of repair personnel, where one person is needed for every 1,000 machine-hours or less (that is,
0 to 1,000 hours requires one person, 1,001 to 2,000 hours requires two people, and so on).
8. Cost of direct materials used (assume no quantity discounts).
9. Rent on a manufacturing plant donated by the county, where the agreement calls for rent of $100,000
to be reduced by $1 for each direct manufacturing labor-hour worked in excess of 200,000 hours, but a
minimum rental fee of $20,000 must be paid.
 1 K
2 B
3 G
4 J
5 I
6 L
7 F
8 K
9 C

10-24 Matching graphs with descriptions of cost and revenue behavior. (D. Green, adapted) Given here
are a number of graphs.

The horizontal axis of each graph represents the units produced over the year, and the vertical axis represents
total cost or revenues.
c. A cost–volume–profit graph
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

A 1
B 6
C 9
D 2
E 8
F 10
G 3
H 8
anufactures and
as follows (V stands

keting, distribution,

one unit of finished

pound of direct
goods is carried at
1, 2017, was $20,970.
 Total
$ 140.000
$ 22.000
$ 5.000
$ 32.000
$ 34.000
$ 233.000

$ 473.000

$ 212.030
$ 260.970

$ 217.000
$ 43.970

esent units produced

tersection of the
 9). Indicate by letter

mputed by the

tity of units

each pound of
cost is $19.98; if

e method. When

xed-fee payment

urs or less (that is,

rent of $100,000
000 hours, but a
ted) Given here

vertical axis represents

14 per unit produced

evel of production