Inventory (assume) Beginning

Raw Materials* $ 25,000

Work in process* $ 30,000
Finished goods* $ 36,550

Number 1-7 Purchase of Raw Materials (assume)

Direct $ 35,500
Indirect $ 11,000
Direct Labor $ 44,000
Indirect Materials Included in the Total Manufacturing Overhead $ 12,000
Indirect Labor $ 12,000
Other Actual Manufacturing Overhead $ 32,000

8 Total Actual Manufacturing Overhead Cost $ 67,000

Total Manufacturing Overhead Cost Estimated for the Month(assume $ 62,500

Total Allocation Base (assume) 8500
9 Actual Direct Labor Hour(assume) 8600.0
Labor Cost/Hour $ 5.12
POHR $ 7.35

Total Manufacturing Overhead Applied for the Month $ 63,235.29

10
Underapplied Overhead Cost for The Month $ 735.29

COGM
Direct materials
Beginning raw materials inventory $ 25,000
Add: Purchase of raw materials $ 35,500
Total raw materials available $ 60,500
Deduct: Ending raw materials inventory $ 18,000
Raw materials used in production $ 42,500
Deduct: Indirect materials included in manufacturing overhead $ 12,000
Direct labor
Manufacturing overhead applied to work in process
Total manufacturing cost
Add: Beginning work in process inventory
 Deduct: Ending work in process inventory
Cost of goods manufactured
COGS
Beginning finished inventory
Add: Cost of goods manufactured
Cost of goods available for sale

Deduct: Ending finished goods inventory

Unadjusted cost of goods sold
Add: Underapplied overhead
11
Adjusted cost of goods sold

Add Assumption Data

Unit Produced* 150,000
Unit Sold* 125,000
Selling Price* $ 6.0
Product Cost/Unit $ 0.79

Total Sales $ 750,000

Selling Expenses (assume) $ 23,050
Administrative Expenses (assume) $ 14,000

Absorption Format Income Statement

Sales $ 750,000
Less: Cost of Good Sold $ 37,285
Gross Margin $ 712,715
Less: Selling Expenses $ 23,050
Less: Administrative Expenses $ 14,000
Net Operating Income $ 675,665

Percentage
Variable Manufacturing Overhead Applied 60%
Fixed Manufacturing Overhead Applied 40%
Variable Selling Expenses 30%
Fixed Selling Expenses 70%
Variable Administrative Expenses 50%
Fixed Administrative Expenses 50%
VARIABLE COST OF GOOD MANUFACTURED
Direct materials
Beginning raw materials inventory $ 25,000
Add: Purchase of raw materials $ 35,500
Total raw materials available $ 60,500
Deduct: Ending raw materials inventory $ 18,000
Raw materials used in production $ 42,500
Deduct: Indirect materials included in manufacturing overhead $ 12,000
Direct labor
Variable manufacturing overhead applied to work in process
Total manufacturing cost
Add: Beginning work in process inventory

Deduct: Ending work in process inventory

Variable cost of goods manufactured
VARIABLE COST OF GOOD SOLD
Beginning finished inventory
Add: Variable cost of goods manufactured
Cost of goods available for sale

Deduct: Ending finished goods inventory

Unadjusted variable cost of goods sold
Add: Variable underapplied overhead
Adjusted variable cost of goods sold

Units Produced 150,000

Variable Cost per Unit
Direct Materials $ 30,500.00
Direct Labor $ 0.15
Variable Manufacturing Overhead $ 0.29
Variable Selling Expenses $ 0.75
Variable Administrative Expenses $ 0.78
Fixed Cost per Year
Fixed Manufacturing Overhead Applied $ 36,550
Fixed Selling Expenses $ 4,412
Fixed Administrative Expenses $ 7,000

Unit Product Cost Computation

Direct Materials, Direct Labor, and Variable Manufacturing Overhead $ 0.75
Fixed Manufacturing Overhead $ -
Unit Product Cost $ 0.75

Absorption Format Income Statement

Sales $ 750,000
 Less: Variable Expenses
Variable Cost of Goods Sold $ 116,853
Variable Selling Expenses $ 6,915
Variable Administrative Expenses $ 7,000
Total Variable Expenses $ 130,768
Contribution Margin $ 619,232
Less: Fixed Expenses
Fixed Manufacturing Overhead + Underapplied fixed
manufacturing overhead $ 36,550
Fixed Selling Expenses $ 4,412
Fixed Administrative Expenses $ 7,000
Total Fixed Expenses $ 47,962
Net Operating Income $ 571,270

CM per Unit $ 4.13

CM Ratio 82.6%
BEP in Rupiah $ 11,618.0
MOS in Rupiah $ 738,382.0
MOS in % 98.5%

DOL 1.08
Sales Increase 10%
Percentage Change in Net Operating Income 10.8%

Advertising Expenses Increase (Fixed Advertising Expense) 15%

Sales Increase 20%
Total Unit Sales Nexth Month 150,000

Contribution Income Statement

This Month
Sales $ 750,000
Less: Variable Expenses
Variable Cost of Goods Sold $ 116,853
Variable Selling Expenses $ 6,915
Variable Administrative Expenses $ 7,000
Total Variable Expenses $ 130,768
Contribution Margin $ 619,232
Less: Fixed Expenses
Fixed Manufacturing Overhead + Underapplied fixed
manufacturing overhead $ 36,550
Fixed Selling Expenses $ 4,412
Fixed Administrative Expenses $ 7,000
Total Fixed Expenses $ 47,962
Net Operating Income $ 571,270
 Ending
$ 18,000
$ 30,000
$ 36,550

Direct Labor Hour

Direct Labor Hour
/Direct Labor Hour
/Direct Labor Hour

$ 30,500
$ 44,000
$ 44,000
$ 118,500
$ 30,000
$ 148,500
$ 30,000
$ 118,500

$ 36,550
$ 118,500
$ 155,050

$ 36,550
$ 36,550
$ 735
$ 37,285

Amount
$ 37,941
$ 2,941
$ 6,915
$ 16,135
$ 7,000
$ 7,000
$ 30,500
$ 44,000
$ 37,941
$ 112,441
$ 30,000
$ 142,441
$ 30,000
$ 112,441

$ 36,550
$ 112,441
$ 148,991

$ 36,550
$ 112,441
$ 4,412
$ 116,853
 Next Month
$ 900,000

$ 112,441
$ 112,441
$ 12,452
$ 237,334
$ 662,666

$ 36,550
$ 5,074
$ 7,000
$ 48,624
$ 614,042