Unitron Corporation

Study Case
Akuntansi Manajemen Biaya
G13/Kelompok III
 Unitron Corporation
Study Case

 Company Background
 Accounting – The Joint Cost Problem
 The Business Problems
- Construction a produced as/sold as
- Computing the per unit costs for rectifiers
- Computing the Revenue, cost, and profit
- Offering from The Toy Company
- Choosing method of allocating joint cost
- Manufacturing strategy for contract related to Government

Unitron Corporation – Study Case

 Company Background

•A Boston-based high-tech firm that was a pioneer in the “solid state”

electronic components
•Market leader in many specialty components  maintain a price

Overview leadership
•Sales of $30 million

•One of significant product group is Rectifiers which each production batch

differs from other batches
•Only 60% of the 100,000 chips in a batch reach the end of manufacturing
•From that percentage, 5000 units have limited marketability and not

Products repairable (seconds)

•Production was running at 20 batches per year
•There are some costs related to the production that need to be allocated to
the units since they are not directly assignable to specific units

Process Costing and Hybrid Product-Costing Systems

Cost Data
Accounting – The Joint Cost Problem

Average/Physical Relative Sales

Unit Approach Value Approach

Assign Costs to units

Divide all joint costs
based on each unit’s
by the total number
pro-rata share of the
of saleable units
total market value

a different gross The same gross

margin percentage margin percentage
for each product over all product lines

Process Costing and Hybrid Product-Costing Systems

Business Problems
Business Problems
 Business Problems

 Additional 2% carrying cost on all inventory

 Additional order 4000 of series 400”second unit”
@$0.15/unit
 Bid from Defense Department on 100,000 unit of 404
@$0.75
Kelompok III
 Anto
 Lelo Habibi
 Rimar Raju Arisandana

Process Costing and Hybrid Product-Costing Systems