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Assignment 2 - CMA

Given various cost data including direct material cost, direct labor cost, plant energy cost, indirect labor cost, indirect others cost, and inventory data. The document calculates manufacturing cost per unit, period ending finished goods inventory in units, units sold, revenue, selling price per unit, cost of goods sold, gross margin, and operating income for a period. It then provides additional data for a scenario where indirect other manufacturing costs are not inventoriable, and calculates the resulting period ending finished goods inventory, cost of goods manufactured, cost of units sold, gross margin, and operating income.

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Vivek Sharan
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48 views

Assignment 2 - CMA

Given various cost data including direct material cost, direct labor cost, plant energy cost, indirect labor cost, indirect others cost, and inventory data. The document calculates manufacturing cost per unit, period ending finished goods inventory in units, units sold, revenue, selling price per unit, cost of goods sold, gross margin, and operating income for a period. It then provides additional data for a scenario where indirect other manufacturing costs are not inventoriable, and calculates the resulting period ending finished goods inventory, cost of goods manufactured, cost of units sold, gross margin, and operating income.

Uploaded by

Vivek Sharan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Given

Direct Material Cost


Direct Labor Cost
Plant Energy cost
Indirect Labor cost
Indirect others

Inventory Data
DM
WIP
FG

a.

Period Ending DM Cost

b.

Period-ending FG inventory

SP Per unit

Operating Income D
Variable cost
140000
30000
5000
10000
8000

Inventory Data
0
0
0

for 1 Unit of 1 FG , 2KG DM is used


Direct Material Cost
DM Cost / KG
Period Ending DM Cost

Let's calculate Manufacturing cost for 100000 units

Particulars
Direct Material Cost
Direct Labor Cost
Plant Energy cost
Indirect Labor cost
Indirect others

Per Unit Manf Cost


Period end FG inventory in units

Units Sold = Opening inventory + Production - Ending Inventory


Units Sold =
Given Revenue
Selling price per unit = Revenue/units sold

Revenue
Opening FG stock
Cost of goods manufactured
Less: Closing / Period end FG ( Given )
Cost of units sold
Gross Margin
MKT. DIST and Cust OH (122850+4000)
Admn OH

Operating Income
Fixed Cost

16000
24000

2000 in kG
0 in Units
To calculate in Units

200000
140000
0.7
1400

Variable Fixed Total


140000 140000
30000 30000
5000 5000
10000 16000 26000
8000 24000 32000
193000 40000 233000

2.33
9000

91000
436800
4.8 per Unit

436800
0
233000
-20970
212030
224770
162850
50000
Gross Margin - (Mkt.Dist +Admin oH)
11920
Given
FG inventory ending total cost, and operating income of the year. If, Indirect other manufacturing costs are not inve
for , the period ending units are 9000 units the cost will be as below:
Average unit Manufacturing cos 2.01 per unit
Period end FG inventory in unit 18090

Revenue 436000
Opening FG stock 0
Cost of goods manufactured 201000
Less: Closing / Period end FG ( G -18090
Cost of units sold 182910
Gross Margin 253090
Operating cost 0
MKT. DIST and Cust OH (12285 162850
Admn OH 50000
Indirect other manufacturing c 32000
Gross Margin - (Mkt.Dist +Admin oH+ Indirect Other manufacturing cost )
Operating Income 9040
manufacturing costs are not inventoriable cost and there are 9000 units of FG inventory on Dec 31

manufacturing cost )
Given
Begin WIP inventory 2000
Begin DM inventory 900
DM purchased 3600
DM used 3750
Variable manufacturing OH 2500
Total manufacturing OH 4800
Total manufacturing costs 16000
Cost of goods manufactured 16500
COGS 17000
End FG inventory 1250

Direct material = Initial direct material inventory + Direct material purchased - Ending direct material inventory
Ending
Cost of Material Inventory = Total manufacturing
goods manufactured 750 cost + Beginning WIP inventory - Ending WIP inventory

Ending WIP inventory 1500


Cost of goods sold = Cost of goods manufactured + beginning finished goods inventory - Ending finished goods inve
beginning finished goods inventory 750
Total manufacturing OH = Variable manufacturing OH + fixed manufacturing OH
fixed manufacturing OH 2300
Good available for sale = Cost of goods manufactured + beginning finished goods inventory
Good available for sale 17250
t material inventory
g WIP inventory

ding finished goods inventory

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