Ab mojakoe-20122013

Presented by : Accounting Study Division MoJaKoe Akuntansi Biaya

Semester Gasal 2012 / 2013

MOJAKOE

AKUNTANSI BIAYA UTS AKUNTANSI BIAYA 2012/2013

Accounting Study Division

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Question 1 (10%)

Adi Nugraha was recently hired as assistant controller of PT Godong Ijo, which processes chemicals for use

in fertilizers. Adi was selected for this position because of his past experience in the chemical processing

field. During his first month on the job, Adi made a point of getting to know the people responsible for the

plant operations and learning how things are done at PT Godong Ijo.

During a conversation with the plant supervisor, Adi asked about the company procedures for handling

toxic waste materials. The plant supervisor replied that he was not involved with the disposal of wastes

and suggested that Adi might be wise to ignore this issue. This response strengthened Adi’s determination

to probe this area further to be sure that the company was not vulnerable to litigation.

Upon further investigation, Adi discovered evidence that PT Godong Ijo was using a nearby residential

landfill to dump toxic wastes. It appeared that some members of PT Godong Ijo’s management team were

aware of this situation and may have been involved in arranging for this dumping; however, Adi was

unable to determine whether his superior, the controller, was involved.

Uncertain how he should proceed, Adi began to consider his options by outlining the following three

alternative courses of action.

Seek the advice of his superior, the controller

Anonymously release the information to the local newspaper.

Discuss the situation with an outside member of the board of directors with whom he is

acquainted

Required:

a. Discuss why Adi has an ethical responsibility to take some action in the matter of PT Godong Ijo

and the dumping of toxic wastes. Refer to the specific standards of IMA Statement of Ethical

Professional Practice to support your answer. ( 4 points )

b. For each of the three alternative courses of action that Adi has outlined, explain whether or not

the action is appropriate. Use the IMA Statement of Ethical Professional Practice to support your

answer ( 3 points )

c. Without prejudice to your answer in Question (b), assume that Adi sought the advice of his

superior, the controller, and discovered that the controller was involved in the dumping of toxic

wastes. Using IMA Statement of Ethical Professional Practice to support your answer, describe the

steps that Adi should take to resolve this situation. ( 3 points )



Question 2 (20%)

PT Segar Abadi manufactures fan with specifications as presented by the picture on the side. Here is data

for the fan’s production costs (in Rp) for September 2012.

Material Used Pelindung Depan 85,000,000 Baling-baling 75,000,000 Sekrup 2,000,000 Pelindung Bawah 81,000,000 Motor 210,000,000 Rumah Mekanik 70,000,000 Pipa Pengatur ketinggian 30,000,000 Pipa Landasan 40,000,000 Penutup Landasan 2,100,000 Penghubung 2,500,000 Landasan/ fondasi 45,000,000 Salaries & Wages Production Operator 25,000,000 Security 6,000,000 N Production supervisor 7,000,000 Others Depreciation of Prod. Machine 100,000,000 Utilities 20,000,000 Security System 4,500,000 Maintenance 30,000,000

In addition, below is the value of the fan’s inventory for both work-in-progress and finished goods ( in Rp)

at the beginning and the end of September 2012

- 1 - Sept 30 - Sept

WIP ( Rp ) 30,000,000 21,000,000

F/G ( Rp ) 245,000,000 300,000,000

Required :

Kindly form a Cost of Goods Sold Report for September 2012 ( Notes : For materials used, you need to

separate direct material from indirect materials)



Question 3 (15%)

3A. Katty Poni opened a re-bonding salon in a new shopping mall. She had anticipated that the costs for the

re-bonding service would be primarily fixed, but she found that the re-bonding costs increased with the

number of visits. Costs for this service over the past 12 months are as follows :

20X1 Re-bonding visits Total Cost ( Rp )

Jan 70 26.280.000 Feb 150 40.000.000 Mar 310 65.640.000 Apr 190 43.500.000 May 170 42.050.000 Jun 260 57.250.000 Jul 230 53.500.000 Aug 180 43.100.000 Sep 140 37.750.000 Oct 120 28.000.000 Nov 200 47.650.000 Dec 280 61.075.000

Required:

a. Calculate the cost formula for re-bonding services using the high-low method. ( 5 points)

b. Predict the cost of re-bonding services for January 20X2 for 110 visits using the formula you have

got in question A. ( 3 points )

3B. The cost of the personnel department at the Mumbai Company has always been charged to the

production departments based upon number of employees. Recently, opinions gathered from the

department managers indicated that the number of new hires might also be a predictor of personnel

costs to be assigned. Total personnel department costs are €120.000.

Cost Driver Department A Department B Department C Number of employees 300 250 50 The number of new hires 15 25 10

Required:

Using the above data, prepare a report that contrasts the different amounts of personnel department

cost that would be allocated to each of the production departments if the cost driver used is

a. Number of employees; (3 points)

b. The number of new hires. (3 points)

c. Which cost estimation method is being used by Mumbai Company? (1point)

Question 4 (5%)



a. What are the costs-benefits of using standard costing? (3 points)

b. What happen if standard costing differ with actual costing? (2 points)

Question 5 (20%)

Anton Cahyadi is an advertising consultant. Recently, he has been working with his accountant to develop

a formal accounting system. His accountant has suggested the use of a job order costing system to simplify

costing procedures. During September, Anton and his staff working on jobs for the following companies :

PT Burangrang PT Red Sky PT Tarantula

Direct material cost Rp 13.500.000 Rp 24.300.000 Rp 28.800.000

Direct labor cost Rp 5.400.000 Rp 28.350.000 Rp 60.750.000

Number of ads designed 5 10 15

Job for PT Burangrang and PT Red Sky has been completed and recognized as revenue, but not for PT

Tarantula. Material purchased for the month is Rp 70.000.000. Anton is able to trace direct material to

each job because most of the cost associated with material related to photography and duplicating. The

accountant has told Anton that a reasonable charge for overhead, based on previous information is Rp

165.000 per direct labor hour. The normal labor cost per hour is Rp 135.000. The Actual overhead for the

month is Rp 120.000.000.

Required:

Based on the above information:

a. Prepare the journal entries related for PT Burangrang (The ads for PT Burangrang has a budgeted

material purchased Rp 15.000.000; PT Burangrang consumed 5% of the total actual MOH for the

month. The company write off any under/over allocated to COGS account).

b. Determine the total balance for WIP and Finished Good for the month.

c. Calculate whether there is under/over allocated for the company’s monthly overhead. The

company write off any under/over allocated to COGS account.

d. If Anton has been charging Rp 7.800.000, per ad developed, what was his net income for the

month?

e. Do you have any suggestion for Anton about the way he bills his client for developing ads? (hints :

analyzed the probability for each job)

Question 6 (30%)

PT DMD manufactures monitor for laptops. Each monitor passes through the assembly department and

the testing department. When the assembly department finishes work on each monitor, it is immediately

transferred to testing department. As each unit is completed in testing department, it is immediately

transferred to Finished Goods.

Other information:



The process costing system at PT DMD has a single direct cost category (direct material) and a

single indirect cost category (conversion cost).

PT DMD uses the FIFO method of process costing for assembly department, and weighted average

method of process costing for testing department.

In the assembly department, direct materials are added at the beginning of the process. While in

the testing department, direct materials area added when the testing department process is 85%

complete.

Conversion costs are added evenly both in the assembly department and in the testing

department.

Data for the assembly department and testing department during the month of October 2012 area as

follows:

Physical Unit

Transferred In

Direct Material

Conversion Cost

Assembly Department (FIFO)

Work In Process, October 1 8,000 $ 2,400,000 $ 850,000

Degree of completion of beginning work in process 60%

Started during October 2012 40,000

Completed during October 2012 42,000

Work in Process, October 31 6,000

Degree of completion of ending work in process 80%

Total Cost added during October 2012 $ 12,000,000 $ 6,500,000

Testing Department (Weighted Average)

Work in process, October 1 15,000 $ 6,330,000 $ - $ 1,500,000

Degree of completion of beginning work in process 80%

Completed during October 2012 53,000

Work in Process, October 31 4,000

Degree of completion of ending work in process 70%

Total Cost added during October 2012 $ 21,465,000 $ 8,265,000

Required:

1. Compute the equivalent units for each cost category in assembly department and testing

department.

2. Explain the degree of completion of Direct Material used in calculation of equivalent units as in no.

1 above.

3. Calculate the ending balance of Work in Process for both departments as per 31 October 2012.

4. Prepare journal entries for all October 2012 transactions affecting Work in Process – Assembly and

Work in Process – Testing.

5. Calculate the unit cost of the product (monitor for laptops).



ANSWER

Question 1

a. Adi has an ethical responsibility to take some action in the matter of PT Godong Ijo and the

dumping of toxic because it involves some values according to IMA Statement of Ethical

Professional Practice such as :

Competence

Adi was selected as an assistant controller because of his past experience in the chemical

processing field which means he has some competence in this subject.

Confidentially

The conversation between Adi and the plant supervisor should be keep confidential.

Integrity

It involves Adi’s integrity to perform duties ethically especially when Adi was suggested to

ignore this issue by the plant supervisor.

Credibility

Adi and others PT Godong Ijo members must provide credible evidence that some

management team were involved in arranging for the dumping.

b. Adi’s alternative courses of action analysis according to IMA Statement of Ethical Professional

Practice :

Seek the advice of his superior is appropriate except when it appears that the superior is

involved. In this case, Adi action is not appropriate because Adi was unable to determine

whether his superior was involved.

Release information to newspapers is clearly an inappropriate. Adi must keep the

information confidential unless he can prove some credible evidences.

Discuss with outside member is inappropriate because Adi must keep the information

confidential. It is better for Adi to discuss the issue with the next level supervisor, such as

the CEO.

c. The steps Adi should take :

Discuss the issue with the next level supervisor, for example CEO and audit committee.

Clarify relevant ethical issues by initiating a confidential discussion with an IMA ethics

Counselor or other impartial advisor.

Consult his own attorney as to legal obligations and tights concerning the ethical conflict.

Question 2

PT Segar Abadi Cost of Goods Sold Report



Question 3

3A.

a. Slope =

=

= 164000

Y = 164000 X + C

26.280.000 = 164000 x 70 + C

C = 14.800.000

The Cost formula:

For the period ended September 31, 2012 ( in Rp ) Direct Materials : Pelindung depan 85.000.000 Baling-baling 75.000.000 Pelindung Bawah 81.000.000 Motor 210.000.000 Rumah Mekanik 70.000.000 Pipa pengatur ketinggian 30.000.000 Pipa Landasan 40.000.000 Landasan 45.000.000 Total direct materials : 636.000.000 Direct Manufacturing Labor 25.000.000 Manufacturing Overhead Cost : Sekrup 2.000.000 Penutup Landasan 2.100.000 Penghubung 2.500.000 Security 6.000.000 Production Supervisor 7.000.000 Depreciation of Prod. Machine 100.000.000 Utilities 20.000.000 Security System 4.500.000 Maintenance 30.000.000 174.100.000 Manufacturing cost incurred during Sept 2012 835.100.000 Beginning Work in Process Inventory, Sept 1, 2012 30.000.000 Total Manufacturing Cost to account for 865.100.000 Ending Work In Process Inventory, Sept 30, 2012 21.000.000 Cost of Goods Manufactured 844.100.000 Beginning finished goods inventory, Sept 1, 2012 245.000.000 Cost of Goods available for use 1.089.100.000 Ending finished goods inventory, Sept 31, 2012 300.000.000 Cost of Goods Sold 789.100.000



Total cost = 164000 x Rebonding Visits+ 14.800.000

b. Total cost predicted for January 20X2 = 164000 x 110 + 14.800.000

= Rp 31200000

3B.

a. Number of employees

Cost of Department A = 300 / (300 + 250 + 50) x €120.000 = €60.000

Cost of Department B = 250 / (300 + 250 + 50) x €120.000 = €50.000

Cost of Department C = 50 / (300 + 250 + 50) x €120.000 = €10.000

b. The number of new hires

Cost of Department A = 15 / (15 + 25 + 10) x €120.000 = €36.000

Cost of Department B = 25 / (15 + 25 + 10) x €120.000 = €60.000

Cost of Department C = 10 / (15 + 25 + 10) x €120.000 = €24.000

c. Mumbai Company should use the number of employees as cost driver to estimate the cost

because the number of employees is more economic plausibility to the cost than the number of

new hires.

Question 4

a. The cost benefit of standard costing system:

Helps managers to focus on important issues

If costs remain standards, Managers can focus on other issues. When costs fall

significantly outside the standards, managers are alerted that there may be problems

requiring attention.

Can promote economy and efficiency

Standard costing provide benchmarks that individuals can use to judge their own

performance.

Can simplify bookkeeping

Instead of recording actual costs for each job, the standard costs for materials, labor, and

overhead can be charged to jobs.

Fit naturally in an integrated system of responsibility accounting

The standards establish what cost should be, who should responsible for them, and what

actual costs are under control.

b. After all of the variances has been calculated, they need to be closed. If the total amount of

variances is not material, then, those variances can be closed to COGS account. However, if those

total variances are big, then the variances should be divided proportionately to WIP inventory,

finished goods inventory, and COGS accounts. How to report the variances in the balance sheet

and income statement is the same as if company makes the journal using normal costing.



Question 5

a. Journal Entries for PT Burangrang

Work-in-Process control 18.900.000 Material Control 13.500.000 Cash 5.400.000 WIP 6.600.000 MOH allocated

6.600.000

Finished Goods Control 25.500.000 Work-in-Process control 25.500.000 Cost of Goods Sold 25.500.000 Finished Goods Control 25.500.000 Manufacturing Overhead allocated 6.600.000 ( labor hour = 5.400.000/135.000 = 40 hours MOH allocated = 40 x 165.000 = 6.600.000 )

COGS 600.000 Manufacturing overhead control 6.000.000 (5% x 120.000.000)

b. Total WIP Balance = Rp 28.800.000 + 60.750.000 + ((60750000/135000)x165000) = Rp 163.800.000

Total Finished Goods = 0 (there is no ending finished goods because all of the finished goods have

been sold)

c. Labor hours PT Burangrang = 40 hours

Labor hours PT Red Sky = 28.350.000/135.000 = 210 hours

Labor hours PT Tarantula = 60.750.000/135.000 = 450 hours

Total labor hours = 700 hours

MOH allocated = 700 x Rp 165.000 = Rp 115.500.000

Under allocated indirect cost = Rp 120.000.000 – 115.500.000 = Rp 4.500.000

Journal entries:

Manufacturing overhead allocated 115.500.000 Cost of Goods Sold 4.500.000 Manufacturing Overhead Control 120.000.000

d. Anton income = 15 x 7.800.000 = Rp 117.000.000

COGS PT Red Sky = 24.300.000 + 28.350.000 + 34.650.000 allocated (210x165000)



= 52.650.000 + 36.272.727

= Rp 88.922.727 87.300.000

COGS PT Burangrang = 25.500.000

Anton Net income = 117.000.000 – 87.300.000 – 25.500.000= Rp 4.200.000

e. Anton should consider time used to produce ads in billing his customer. Time consumed job

should be more expensive than others.

Question 6

1. Equivalent Unit

Flow of Production Physical

Units

Equivalent Units

Tranferred-In Cost

Direct Material

Conversion Cost

Assembly Department

Work in Process, October 1 8.000

Started during October 2012 40.000

To account for 48.000

Completed and transferred out during current period

From beginning work in process 8.000

[8.000 x 0% ; 8.000 x (100% - 60%)] 0 3.200

Started and completed 34.000

[40.000 x 100% ; 40.000 x 100%] 34.000 34.000

Work in process ending 6.000

[6.000 x 100% ; 6.000 x 80%] asdasd 6.000 4.800

Accounted for 48.000

Equivalent units of work done in October 2012 40.000 42.000

Testing Department

Work in Process, October 1 15.000

Transferred in October 2012 (53.000 + 4.000 – 15.000)

42.000

To account for 57.000

Completed and transferred out during current period 53.000 53.000 53.000 53.000

Work in process ending 4.000

[4.000 x 100% ; 4.000 x 0% ; 4.000 x 70%] aasdas 4.000 asdas- 2.800

Accounted for 57.000

Equivalent units of work done in October 2012 57.000 53.000 55.800

2. Degree of Completion of Direct Material



In both Assembly and Testing Department, Degree of completion of Direct material is 100%

because the materials are added at to the process one time, whether it is on the beginning of the

process or when the process is 85% complete.

3. Ending Balance of WIP

Total Production

Cost

Transferred-In Cost

Direct Material

Conversion Cost

Assembly Department

Work in process beginning $ 3.250.000 $ 2.400.000 $ 850.000

Cost added in October 2012 18.500.000 12.000.000 6.500.000

Total costs to account for $ 21.750.000 14.400.000 $ 7.350.000

Cost added in October 2012 $ 12.000.000 $ 6.500.000

Divide by equivalent units of work done in October 2012 40.000 42.000

Cost per equivalent unit of work done in current period $ 300 $ 154,76

Work in process ending $ 2.542.848 6.000 x $ 300 4.800 x $ 154,76

Testing Department

Work in process beginning $ 7.830.000 $ 6.330.000 $ - $ 1.500.000

Cost added in October 2012 (( 34.000 x 300 + 37.200 x 154,76 +2.400.000 + 850.000);21.465.000; 8.265.000)

45.687.072 19.207.143 21.465.000 8.265.000

Total costs to account for $ 53.517.072 $ 25.537.143 $ 21.465.000 $ 9.765.000

Cost incurred to date $ 25.537.143 $ 21.465.000 $ 9.765.000

Divide by equivalent units of work done in October 2012 57.000 53.000 55.800

Cost per equivalent unit of work done in current period $ 448,0201 $ 405 $ 175

Work in process ending $ 2.282.080 4.000 x $448 - 2.800 x $175

4. Journal Entries

WIP – Assembly 12.000.000 Accounts Payable Control 12.000.000 WIP – Assembly 6.500.000 Various accounts such as Wages Payable Control

and Accumulated Depreciation 6.500.000

WIP Control – Testing 19.207.143 WIP Control – Assembly 19.207.143 WIP Control – Testing 21.465.000



Accounts Payable Control 21.465.000 WIP Control – Testing 8.265.000 Various accounts such as Wages Payable Control

and Accumulated Depreciation 8.265.000

Finished Goods 54.485.063 WIP Control – Testing 54.485.063

5. Unit cost product = 54.485.063/ 53.000 = $ 1028

Ab mojakoe-20122013

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