Question
ABC company produced the X-200 en masse. The production process is carried out through three main processes, namely the Casting Process; Forming / Machining and
ABC company produced the X-200 en masse. The production process is carried out through three main processes, namely the Casting Process; Forming / Machining and Finishing Processes.
The following are the records that were collected during the 1 month running.
The Cast department was given a production target for this month by the PPIC department of 100 units
At the end of the month, it was noted that the Cor department had sent 80 units of the castings to the Forming Department while the remaining 20 units were still 40% complete. From the cost records in the Cor section, it can be seen that the expenditure so far has reached Rp. 50 million for materials; IDR 30 million for direct labor and IDR 40 million for overhead costs.
The Machining Section which has received 80 units of cast products from the cast section, at the end of the month it was noted that 50 units of castings had been completed in machining and had been sent to the finishing section. Of the remaining 30 cast units, it turns out that 10 units are damaged / failed in machining and 20 units are still in a state of 30% so in the machining section
The cost records in the Machining section show that the expenditure to date has reached Rp. 20 million for direct labor and Rp. 40 million for overhead costs.
Furthermore, in the Finishing Department which has received 50 units of machining products, at the end of the month it is recorded that 40 units of products have been finished and have been sent to the warehouse (ready for sale). The remaining 10 machining units that must be finished are still 50% finished. The cost record in the Finishing section shows that the expenditure to date has reached IDR 20 million for direct labor and IDR 30 million for overhead costs.
At the end of the month Gudang reported that 25 X-200 units had been sold
A. If the company sets a profit target of 40%, it must set the selling price per unit?
B. How much income does the company receive from its sales at the end of the month?
C. How many units of product X - 200 will be ready for sale at the end of next month?
D. Put together a simple income statement for this company for the end of the month?
Step by Step Solution
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ANS A SELLING PRICE PER UNIT IS 322 MILLION PER UNIT NOTES CASTING PROCESS FOR MATERIALS 50 MILLION ...Get Instant Access to Expert-Tailored Solutions
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