AM S1 Reguler [I] Inventory Costing

Dosen : Sonya Oktaviana/Sri Nurhayati, Asdos : Fahmi Harits

Problem 1
Ashoy Company manufactures metal cans used in food-processing industry. A case
of cans sells for Rp 25.000. the variable standard costs of production for one case
of case are as follows:

Direct Material
Direct Labor
Variable manufacturing overhead

Rp 7.500
Rp 2.500
Rp 6.000

Variable selling and administrative costs amount to Rp 500 per case. Budgeted
fixed manufacturing overhead is Rp 400.000.000 per year and fixed selling and
administrative cost is Rp 37.500.000 per year. The following data pertain to the
companys first two years of operation (a unit refers to case of cans)
Planned production (in units)
Finished-goods inventory (in units, January 1)
Actual production (in units)
Sales (in units)
Finished-goods inventory (in units, December
31)

80.000
0
70.000
60.000
20.000

There were no variance during Ashoys first two years of operation. Actual costs
were the same as the budgeted and standard costs.
Required :
Prepare operating income statements using:
i Absorption costing
ii Variable costing
iii Throughput Costing
Problem 2
Nocuan Company manufactures trendy, high-quality moderately priced watches.
as Nocuans senior financial analyst, you are asked to recommend a method of
inventory costing. The following data are for the year ended December 31, 2014:

Beginning inventory, Jan 1, 2014

Ending inventory, Dec 31, 2014
2014 sales
Selling price to distributor
Variable manufacturing cost per unit
Variable marketing cost per unit
Fixed manufacturing cost
Denominator-level-machine-hours
Standard production rate
Fixed marketing cost

85,000 units
34,500 units
345,400 units
Rp 220.000 per unit
Rp 51.000 per unit
Rp 11.000 per unit sold
Rp 14.400.000.000
6,000
50 units per machine hour
Rp 10.800.000.000

AM S1 Reguler [I] Inventory Costing

Dosen : Sonya Oktaviana/Sri Nurhayati, Asdos : Fahmi Harits
Assume standard cost per unit are the same units in beginning inventory and
units produced during the year. also, assume no price, spending, or efficiency
variances. any production-volume variance is written off to cost of goods sold in
the month in which it occurs.
1

Prepare income statements under variable and absorption costing for the
year ended December 31, 2014

Homework
Ntap Corp. manufactures and sells 5-inch cellphone and uses standard costing.
Actual data relating to October, November, and December of 2014 are as follows:

The selling price per unit is $3500. The budgeted level of production used to
calculate the budgeted fixed manufacturing cost per unit is 1,000 units.
1. Prepare income statements for Ntap in October, November, and December
of 2014 under :
a. Variable Costing
b. Absorption Costing
2. Explain the difference in operating income for October, November, and
December under each method

3. If costing information is still same and you are given additional information
for the breakdown of variable manufacturing cost per unit produced
above, calculate income statements for Ntap Corp under throughput
costing.