Process Costing With Traditional Costing

Raw Material WIP Preparation

$ 225,000 $ 225,000
$ 50,000 $ 200,000
$ 12,500 $ 56,441

Saldo: $ - $ 287,500 Saldo: $ 481,441 $ -

$ -287,500 $ 481,441

Direct Labour WIP Mixing

$ 200,000 $ 50,000
$ 125,000 $ 125,000
$ 37,500 $ 89,674

$ - $ 362,500 $ 264,674 $ -
Saldo: $ -362,500 Saldo: $ 264,674

MOH WIP Packaging

$ 179,980 $ 12,500
$ 37,500
$ 33,865

$ - $ 179,980 $ 83,865 $ -
Saldo: $ -179,980 Saldo: $ 83,865

Product Name: X1500

Product Type: Beverage
Total to Produce: 1,250 unit
Indirect materials and indirect labour directly allocated to departments:
Preparation $ 33,200
Mixing $ 47,600
Packaging $ 10,620
Store $ 3,520
Office $ 15,040
$ 109,980
Factory-wide overheads to be allocated to departments:
US $ Basis of allocation
Depreciation of buildings $ 8,000 Area
Electricity $ 24,000 Kilowatt hours
Repairs $ 6,000 Cost of machines
Supervision $ 32,000 Number of employees
$ 70,000
Forecasted department data:
Preparation Mixing Packaging Store Office
Number of employees 30 people 40 people 15 people 5 people 10 people
Cost of machines $ 288,000 $ 96,000 $ 72,000 $ 24,000 $ -
Kilowatt hours 80,000 Kwh 40,000 Kwh 19,200 Kwh 14,400 Kwh 6,400 Kwh
Area – square metres 2,000 m 3,000 m 1,000 m 3,000 m 1,000 m
Material requisitions 600 90 60 0 0
Total labour hours 11,400 hours 15,200 hours 7,600 hours 3,800 hours 4,000 hours
Production data:
Direct labour cost $ 180,000 $ 300,000 $ 124,800
Direct labour hours 10,000 hours 15,888 hours 6,000 hours
Machine hours 25,200 hours 8,000 hours 8,000 hours

Preparation Mixing Packaging

Direct materials cost $ 180 $ 40 $ 10
Direct labour cost $ 160 $ 100 $ 30
Direct labour hours 8 hours 5 hours 2 hours
Machine hours 10 hours 4 hours 1 hours
Cost Preparation Mixing Packaging Store Office
Indirect materials & labour $ 33,200 $ 47,600 $ 10,620 $ 3,520 $ 15,040
Depreciation – buildings $ 1,600 $ 2,400 $ 800 $ 2,400 $ 800
Electricity $ 12,000 $ 6,000 $ 2,880 $ 2,160 $ 960
Repairs $ 3,600 $ 1,200 $ 900 $ 300 $ -
Supervision $ 9,600 $ 12,800 $ 4,800 $ 1,600 $ 3,200
$ 60,000 $ 70,000 $ 20,000 $ 9,980 $ 20,000
Redistribute Office $ 6,000 $ 8,000 $ 4,000 $ 2,000 $ (20,000)
$ 66,000 $ 78,000 $ 24,000 $ 11,980 $ -
Redistribute Stores $ 9,584 $ 1,438 $ 958 $ (11,980)
$ 75,584 $ 79,438 $ 24,958 $ -

Preparation Mixing Packaging

Overhead Rate $ 3 $ 5.00 20.00%

Unit Cost of Product X1500

Direct Materials $ 230
Direct Labor $ 290
Overhead
Preparation $ 24
Mixing $ 25
Packaging $ 6
$ 575
 Total
$ 109,980
$ 8,000
$ 24,000
$ 6,000
$ 32,000
$ 179,980
$ -
$ 179,980
$ -
$ 179,980
Process Costing With Activity Base Costing
Metode ABC
Raw Material WIP Preparation
$ 225,000 $ 225,000
$ 50,000 $ 200,000
$ 12,500 $ 75,584

Saldo: $ - $ 287,500 Saldo: $ 500,584 $ -

$ -287,500 $ 500,584

Direct Labour WIP Mixing

$ 200,000 $ 50,000
$ 125,000 $ 125,000
$ 37,500 $ 79,438

$ - $ 362,500 $ 254,438 $ -
Saldo: $ -362,500 Saldo: $ 254,438

MOH WIP Packaging

$ 179,980 $ 12,500
$ 37,500
$ 24,958

$ - $ 179,980 $ 74,958 $ -
Saldo: $ -179,980 Saldo: $ 74,958

Product Name: X1500

Product Type: Beverage
Total to Produce: 1,250 unit
Indirect materials and indirect labour directly allocated to departments:
Preparation $ 33,200
Mixing $ 47,600
Packaging $ 10,620
Store $ 3,520
Office $ 15,040
$ 109,980
Factory-wide overheads to be allocated to departments:
US $ Basis of allocation
Depreciation of buildings $ 8,000 Area
Electricity $ 24,000 Kilowatt hours
Repairs $ 6,000 Cost of machines
Supervision $ 32,000 Number of employees
$ 70,000
Forecasted department data:
Preparation Mixing Packaging Store Office
Number of employees 30 people 40 people 15 people 5 people 10 people
Cost of machines $ 288,000 $ 96,000 $ 72,000 $ 24,000 $ -
Kilowatt hours 80,000 Kwh 40,000 Kwh 19,200 Kwh 14,400 Kwh 6,400 Kwh
Area – square metres 2,000 m 3,000 m 1,000 m 3,000 m 1,000 m
Material requisitions 600 90 60 0 0
Total labour hours 11,400 hours 15,200 hours 7,600 hours 3,800 hours 4,000 hours
Production data:
Direct labour cost $ 180,000 $ 300,000 $ 124,800
Direct labour hours 10,000 hours 15,888 hours 6,000 hours
Machine hours 25,200 hours 8,000 hours 8,000 hours

Preparation Mixing Packaging

Direct materials cost $ 180 $ 40 $ 10
Direct labour cost $ 160 $ 100 $ 30
Direct labour hours 8 hours 5 hours 2 hours
Machine hours 10 hours 4 hours 1 hours
Cost Preparation Mixing Packaging Store Office
Indirect materials & labour $ 33,200 $ 47,600 $ 10,620 $ 3,520 $ 15,040
Depreciation – buildings $ 1,600 $ 2,400 $ 800 $ 2,400 $ 800
Electricity $ 12,000 $ 6,000 $ 2,880 $ 2,160 $ 960
Repairs $ 3,600 $ 1,200 $ 900 $ 300 $ -
Supervision $ 9,600 $ 12,800 $ 4,800 $ 1,600 $ 3,200
$ 60,000 $ 70,000 $ 20,000 $ 9,980 $ 20,000
Redistribute Office $ 6,000 $ 8,000 $ 4,000 $ 2,000 $ (20,000)
$ 66,000 $ 78,000 $ 24,000 $ 11,980 $ -
Redistribute Stores $ 9,584 $ 1,438 $ 958 $ (11,980)
$ 75,584 $ 79,438 $ 24,958 $ -

Preparation Mixing Packaging

Overhead Rate $ 3 $ 5.00 20.00%

Unit Cost of Product X1500

Direct Materials $ 230
Direct Labor $ 290
Overhead
Preparation $ 24
Mixing $ 25
Packaging $ 6
$ 575
 Total
$ 109,980
$ 8,000
$ 24,000
$ 6,000
$ 32,000
$ 179,980
$ -
$ 179,980
$ -
$ 179,980