VARIABLE COSTING:

SEGMENTED REPORTING

Taty Sariwulan, S.E., M.Si., Ak., CA.

ILUSTRASI KASUS
Fine Leather Company produced a lady’s wallet and a man wallet. Selected
data for the past year follow :
Lady’s Wallet Mans Wallet
Production (units) 100,000 200,000
Sales (units) 90,000 210,000
Selling Price $ 5,5 $ 4,5
Direct Labor hours 50,000 80,000
Manufacturing cost :
Direct materials $ 75,000 $ 100,000
Direct Labor $ 250,000 $ 400,000
Variable Overhead $ 20,000 $ 24,000
Fixed Overhead :
Direct $ 50,000 $ 40,000
Common $ 20,000 $ 20,000
 Lady’s Wallet Mans Wallet

Non manufacturing cost :

Variable selling $ 30,000 $ 60,000
Direct fixed selling $ 35,000 $ 40,000
Common fixed selling $ 25,000 $ 25,000

Budgeted fixed overhead for the year $130,000, equaled the actual fixed
overhead. Fixed overhead is assigned to products using a plantwide
rate based on expected direct labor hours, which were 130,000. The
company had 10,000 mans wallets in inventory at the beginning of he
year. These wallet had the same unit costs as the mans wallets
produced during the year.
Required :
1. Compute the unit cost for the lady’s and man’s wallets using
variable costing method. Compute the unit cost using absorption
costing.
2. Prepare an income statement using absorption costing.
3. Prepare an income statement using variable costing.
4. Reconcile the difference between the two income statement.
5. Prepare a segmented income statement using products as
segments.
1. The Unit Cost For The Ladys Wallet Is A Follow:

Full Costing Variable Costing

Direct Material $ 0,75 $ 0,75
Direct Labor $ 2,50 $ 2,50
Variable Overhead $ 0,20 $ 0,20
Fixed Overhead $ 0,50*) -
3,95 $ 3,45

The Unit Cost For The Mens Wallet Is A Follow :

Full Costing Variable Costing

Direct Material $ 0,50 $ 0,50
Direct Labor $ 2,00 $ 2,00
Variable Overhead $ 0,12 $ 0,12
Fixed Overhead $ 0,40*) -
$ 3,02 $ 2,62
*) Perhitungan BOP Tetap per unit:
𝑨𝒏𝒈𝒈𝒂𝒓𝒂𝒏 𝑩𝑶𝑷 𝑻𝒆𝒕𝒂𝒑 $ 𝟏𝟑𝟎.𝟎𝟎𝟎
Tarif BOP Tetap: = =$1
𝑫𝒂𝒔𝒂𝒓 𝑷𝒆𝒎𝒃𝒆𝒃𝒂𝒏𝒂𝒏 𝟏𝟑𝟎.𝟎𝟎𝟎 𝒋𝒌𝒍

Pembebanan BOP Untuk:

Ladys Wallet: $1 x 50.000 jkl = $ 50.000 per unit : $50.000 : 100.000 unit = $0,5
Mens Wallet: $1 x 80.000 jkl = $ 80.000 per unit : $80.000 : 200.000 unit = $0,4
2. The Income Statement Under Absorption Costing Is A Follow :

Sales ($ 5,50 x 90.000) + ($ 4,50 x 210.000) $ 1.440.000

Less Cost Of Goods Sold :
($ 3,95 x 90.000) + ($ 3,02 x 210.000) ($ 989.700)
Gross Margin $ 450.300
Less : Selling Expense ($ 215.000)
Net Income S 235.300
3. The Income Statement Under Variable Costing Is A Follow :

Sales ($ 5,50 x 90.000) + ($ 4,50 x 210.000) $ 1.440.000

Less Variable Expenses :
Variable CGS ($3,45 x 90.000) + ($2,62 x 210.000) ($860.700)
Variable Selling Expenses ($90.000)
Contribution Margin $ 489.300
Less Fixed Expenses :
Fixed Overhead ($130.000)
Fixed Selling ($125.000)
$234.300
4. Reconciliation Is A Follow :

IA - IV = $ 235.300 - $ 234.300 = $ 1.000

Ladys Wallets Mans Wallets

Unit Produced 100.000 200.000
Unit Sold 90.000 210.000
Increase In Inventory 10.000 (10.000)
Unit Fixed Overhead $ 0,5 $ 0,4
Increase (Decrease) In Fixed Overhead $ 5.000 ($ 4.000)
5. Segmented Income Statement (Variable Costing)

Ladys Wallets Mens Wallets Total

Sales $ 495.000 $ 945.000 $ 1.440.000
Less Variable Cost :
Variable CGS (310.500) (550.200) (860.700)
Variable Selling Expense (30.000) (60.000) (90.000)
Contribution Margin 154.500 334.800 489.300
Less Direct Fixed Expense
Direct Fixed Overhead (50.000) (40.000) (90.000)
Direct Selling Expense (35.000) (40.000) (75.000)
Product margin 69.500 254.800 324.300
Less Common Fixed Expense
Common Fixed Overhead (40.000)
Common Selling Expense (50.000)

Net Income 234.300

TERIMA KASIH