ANSWER

1. 2018 Production Budget (in Units)

Budgeted Unit Sales 8,000
(+) Budgeted End. Finished Goods 1,200 +
Total Requirements 9,200
(-) Beginning Finished Goods 1,100 -
Budgeted Production 8,100

2. Direct material usage and purchases budget for 2018

Fabric Dye
DM Usage Budget
1. Budgeted Input/f.g. unit 1 3
2. Budgeted Production 8,100 8,100 x
3. Budgeted Usage (1 x 2) 8,100 24,300

DM Cost Budget
4. Beginning inventory 750 1,000
5. Unit price (FIFO) 9,000 900 x
6. Cost of DM used from beginning inventory (4 × 5) 6,750,000 900,000

7. Materials to be used from purchases (3– 4) 7,350 23,300

8. Cost of DM in 2018 10,000 1,000 x
9. Cost of DM purchased and used in 2018 (7 × 8) 73,500,000 23,300,000

10. Direct materials to be used (6 + 9) 80,250,000 24,200,000

3. Direct manufacturing labor budget for 2018

Budgeted Production 8,100
DL Hour Per Output Unit 0.25 x
Total Hours 2,025
Horuly Rate 20,000 x
Total 40,500,000

4. Manufacturing overhead budget for 2018

Variable Manuf. Overhead Cost
(2.025 DLH x Rp. 3.000/DLH) 6,075,000
Fixed Manuf. Overhead Cost 40,000,000
Total Manuf. Overhead Cost 46,075,000

5. Cost of one t-shirt manufactured in 2018 (COGS Budget)

DM
Fabric 10,000
Dye 1,000
DML 5,000
Variable manufacturing overhead 3,000
Fixed manufacturing overhead
(40.000.000 / 2.025 DLH x 0,25 DLH per unit) 4,938.27 +
Total manufacturing costs 23,938.27
PROBLEM 2

Traditional Modern
Total
Kebaya Kebaya
Expected Sales 187,500 62,500 250,000
Sales Price 28 50 78
Revenues 5,250,000 3,125,000 8,375,000
VC per unit 18 30 48
Variable Costs 3,375,000 1,875,000 5,250,000
Contribution Margin 1,875,000 1,250,000 3,125,000
Fixed Costs 2,250,000
Operating Income 875,000

Number per each

CM per unit CM of each bundle
bundle
Traditional Kebaya 3 10 30
Modern Kebaya 1 20 20
Total CM per bundle 50

1. Breakeven point in bundles:

Fixed Cost 2,250,000
CM per Bundle 50
BEP in bundles 45,000
BEP Traditional Kebaya 135,000 units
BEP Modern Kebaya 45,000 units
Total BEP in Units 180,000 units

2. BEP in units
(a) Only traditional kebayas are sold
Fixed Cost 2,250,000
CM per unit Traditional Kebaya 10
BEP Traditional Kebaya 225,000 units

(b) Only modern kebayas are sold

Fixed Cost 2,250,000
CM per unit Traditional Kebaya 20
BEP Traditional Kebaya 112,500 units

3. Computations --> if 250.000 sold, 50.000 of them are modern kebaya

(a) Operating Income
Traditional Modern
Total
Kebaya Kebaya
Expected Sales 200,000 50,000 250,000
Sales Price 28 50 78
Revenues 5,600,000 2,500,000 8,100,000
VC per unit 18 30 48
Variable Costs 3,600,000 1,500,000 5,100,000
Contribution Margin 2,000,000 1,000,000 3,000,000
Fixed Costs 2,250,000
Operating Income 750,000

(b) BEP in units

Number per each
CM per unit CM of each bundle
bundle
Traditional Kebaya 4 10 40
Modern Kebaya 1 20 20
Total CM per bundle 60

breakeven point:
Fixed Cost 2,250,000
CM per Bundle 60
BEP in bundles 37,500
BEP Traditional Kebaya 150,000 units
BEP Modern Kebaya 37,500 units
Total BEP in Units 187,500 units