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    Materi 4 - Variable Costing - Segmented Reporting

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    Trakhita Trona Tsezana
    This document discusses variable costing and segmented reporting. It provides an illustration using data from Fine Leather Company to calculate unit costs for ladies' and men's wallets under both variable and absorption costing. It then presents income statements using both costing methods and reconciles the difference. Finally, it shows a segmented income statement using the two product lines.

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    Materi 4 - Variable Costing - Segmented Reporting

    Uploaded by

    Trakhita Trona Tsezana
    32 views12 pages
    This document discusses variable costing and segmented reporting. It provides an illustration using data from Fine Leather Company to calculate unit costs for ladies' and men's wallets under both variable and absorption costing. It then presents income statements using both costing methods and reconciles the difference. Finally, it shows a segmented income statement using the two product lines.

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    Materi 4_Variable Costing_Segmented Reporting

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    This document discusses variable costing and segmented reporting. It provides an illustration using data from Fine Leather Company to calculate unit costs for ladies' and men's wallets under both variable and absorption costing. It then presents income statements using both costing methods and reconciles the difference. Finally, it shows a segmented income statement using the two product lines.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    32 views12 pages

    Materi 4 - Variable Costing - Segmented Reporting

    Uploaded by

    Trakhita Trona Tsezana
    This document discusses variable costing and segmented reporting. It provides an illustration using data from Fine Leather Company to calculate unit costs for ladies' and men's wallets under both variable and absorption costing. It then presents income statements using both costing methods and reconciles the difference. Finally, it shows a segmented income statement using the two product lines.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 12

    VARIABLE COSTING:

    SEGMENTED REPORTING

    Taty Sariwulan, S.E., M.Si., Ak., CA.


    ILUSTRASI KASUS
    Fine Leather Company produced a lady’s wallet and a man wallet. Selected
    data for the past year follow :
    Lady’s Wallet Mans Wallet
    Production (units) 100,000 200,000
    Sales (units) 90,000 210,000
    Selling Price $ 5,5 $ 4,5
    Direct Labor hours 50,000 80,000
    Manufacturing cost :
    Direct materials $ 75,000 $ 100,000
    Direct Labor $ 250,000 $ 400,000
    Variable Overhead $ 20,000 $ 24,000
    Fixed Overhead :
    Direct $ 50,000 $ 40,000
    Common $ 20,000 $ 20,000
    Lady’s Wallet Mans Wallet

    Non manufacturing cost :


    Variable selling $ 30,000 $ 60,000
    Direct fixed selling $ 35,000 $ 40,000
    Common fixed selling $ 25,000 $ 25,000

    Budgeted fixed overhead for the year $130,000, equaled the actual fixed
    overhead. Fixed overhead is assigned to products using a plantwide
    rate based on expected direct labor hours, which were 130,000. The
    company had 10,000 mans wallets in inventory at the beginning of he
    year. These wallet had the same unit costs as the mans wallets
    produced during the year.
    Required :
    1. Compute the unit cost for the lady’s and man’s wallets using
    variable costing method. Compute the unit cost using absorption
    costing.
    2. Prepare an income statement using absorption costing.
    3. Prepare an income statement using variable costing.
    4. Reconcile the difference between the two income statement.
    5. Prepare a segmented income statement using products as
    segments.
    1. The Unit Cost For The Ladys Wallet Is A Follow:

    Full Costing Variable Costing


    Direct Material $ 0,75 $ 0,75
    Direct Labor $ 2,50 $ 2,50
    Variable Overhead $ 0,20 $ 0,20
    Fixed Overhead $ 0,50*) -
    3,95 $ 3,45

    The Unit Cost For The Mens Wallet Is A Follow :

    Full Costing Variable Costing


    Direct Material $ 0,50 $ 0,50
    Direct Labor $ 2,00 $ 2,00
    Variable Overhead $ 0,12 $ 0,12
    Fixed Overhead $ 0,40*) -
    $ 3,02 $ 2,62
    *) Perhitungan BOP Tetap per unit:
    𝑨𝒏𝒈𝒈𝒂𝒓𝒂𝒏 𝑩𝑶𝑷 𝑻𝒆𝒕𝒂𝒑 $ 𝟏𝟑𝟎.𝟎𝟎𝟎
    Tarif BOP Tetap: = =$1
    𝑫𝒂𝒔𝒂𝒓 𝑷𝒆𝒎𝒃𝒆𝒃𝒂𝒏𝒂𝒏 𝟏𝟑𝟎.𝟎𝟎𝟎 𝒋𝒌𝒍

    Pembebanan BOP Untuk:


    Ladys Wallet: $1 x 50.000 jkl = $ 50.000 per unit : $50.000 : 100.000 unit = $0,5
    Mens Wallet: $1 x 80.000 jkl = $ 80.000 per unit : $80.000 : 200.000 unit = $0,4
    2. The Income Statement Under Absorption Costing Is A Follow :

    Sales ($ 5,50 x 90.000) + ($ 4,50 x 210.000) $ 1.440.000


    Less Cost Of Goods Sold :
    ($ 3,95 x 90.000) + ($ 3,02 x 210.000) ($ 989.700)
    Gross Margin $ 450.300
    Less : Selling Expense ($ 215.000)
    Net Income S 235.300
    3. The Income Statement Under Variable Costing Is A Follow :

    Sales ($ 5,50 x 90.000) + ($ 4,50 x 210.000) $ 1.440.000


    Less Variable Expenses :
    Variable CGS ($3,45 x 90.000) + ($2,62 x 210.000) ($860.700)
    Variable Selling Expenses ($90.000)
    Contribution Margin $ 489.300
    Less Fixed Expenses :
    Fixed Overhead ($130.000)
    Fixed Selling ($125.000)
    $234.300
    4. Reconciliation Is A Follow :

    IA - IV = $ 235.300 - $ 234.300 = $ 1.000

    Ladys Wallets Mans Wallets


    Unit Produced 100.000 200.000
    Unit Sold 90.000 210.000
    Increase In Inventory 10.000 (10.000)
    Unit Fixed Overhead $ 0,5 $ 0,4
    Increase (Decrease) In Fixed Overhead $ 5.000 ($ 4.000)
    5. Segmented Income Statement (Variable Costing)

    Ladys Wallets Mens Wallets Total


    Sales $ 495.000 $ 945.000 $ 1.440.000
    Less Variable Cost :
    Variable CGS (310.500) (550.200) (860.700)
    Variable Selling Expense (30.000) (60.000) (90.000)
    Contribution Margin 154.500 334.800 489.300
    Less Direct Fixed Expense
    Direct Fixed Overhead (50.000) (40.000) (90.000)
    Direct Selling Expense (35.000) (40.000) (75.000)
    Product margin 69.500 254.800 324.300
    Less Common Fixed Expense
    Common Fixed Overhead (40.000)
    Common Selling Expense (50.000)

    Net Income 234.300


    TERIMA KASIH

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