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Costing

The document contains cost apportionment information for different cost centers (MAC A, MAC B, Assembly). It allocates overhead costs like rent, building power, heat, and depreciation to the cost centers based on factors like machine usage, area, power usage, and direct labor. It also contains information on marginal costing vs absorption costing calculations for a product over two periods including sales, production costs, inventory levels, contribution, fixed costs and profits. The last section shows a marginal costing vs absorption costing example for a single period with sales of Rs. 80,000, comparing gross profit, fixed costs and loss/profit between the two methods.

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Karthik Selvaraj
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53 views12 pages

Costing

The document contains cost apportionment information for different cost centers (MAC A, MAC B, Assembly). It allocates overhead costs like rent, building power, heat, and depreciation to the cost centers based on factors like machine usage, area, power usage, and direct labor. It also contains information on marginal costing vs absorption costing calculations for a product over two periods including sales, production costs, inventory levels, contribution, fixed costs and profits. The last section shows a marginal costing vs absorption costing example for a single period with sales of Rs. 80,000, comparing gross profit, fixed costs and loss/profit between the two methods.

Uploaded by

Karthik Selvaraj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
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Cost Apportionment

MAC A
IW
CONS
RENT
BUILDING
POWER
HEAT
DEP

78,560.00
16,900.00
16,700.00
2,400.00
8,600.00
3,400.00
40,200.00
###

Reallocate
Reallocate
###
value of mach
Power usage
direct lab
mach usage
area

402000
100
35000
25200
45000

MAC B
8,586.00
6,400.00
3,711.00
533.00
4,730.00
756.00
20,100.00
44,816.00
7,600.00
4,752.00
57,168.00
201000
55
8000
7200
10000

ASSEMBLY

9,190.00
8,700.00
4,453.00
640.00
3,440.00
907.00
17,900.00
45,230.00
5,890.00
11,880.00
63,000.00

15,674.00
1,200.00
5,567.00
800.00
258.00
1,133.00
2,200.00
26,832.00
19,760.00
0
46,592.00

179000
40
6200
18000 12000

22000
3
20800

3.50

2.24

15000

Ovehead Obsorption rate


7.94

Actual exp
Overhead ab
Mac a
MAC B
Assembly

176,533.00
57962
65,450.00
49,056.00

Under obsorption

4,065.00

over

172468

17000
180000
10000

Marginal Costing

valued at variable production cost

variable cost
sales
fixed

4
6
2000

Absorption costing
the absorption rate for fixed production overheads
full absorbed cost per unit

Period 1
Sales
Production cost
Variable
Fixed
Add: open inv
Less: clg inv
Prod. Cost of sales
Under Absorbed oh
Total cost
Gross Profit
Less: Other cost
Net Profit

Marginal Costing
Sales
Variable prod cost
Add: op inv
Less closing inv
variable cost of sales
Contribution
Fixed cost

Period 2
7200

10200

-6000
-1500
7500
0
-1500
6000

-5600
-1400
7000
-1500

6000

8500
100
8600

1200
-500
700

1600
-500
1100

cost per unit

7200
-6000
0
-1200

10200
-5600
1200

4800

6800

2400
-2000

3400
-2000

Profit

400

1400

Q2)
Marginal costing
31.03.03
Sales
variable prod cost
Opn Inventory
Less : Clg Inv

980000
416500

30.09.03

-73500
343000

1120000
343000
73500
-24500
392000

637000

728000

Variable selling cost

196000
441000

224000
504000

Fixed cost
selling

160000
90000

160000
90000

250000

250000

191000

254000

980000
586500
-103500
483000
-10000

1120000
103500
483000
-34500
552000
20000

473000

572000

Gross Profit

507000

548000

selling and so on cost


variable

196000
90000

224000
90000

221000

234000

Net Profit

Absorption Costing
Sales
Opening inv
std cost
Closing inv
over/under obsp

6.4 SP
VC
FPC

10 per U
4 per U
50000

a) Absorption costing
SP
Production cost
variable
fixed
Less: Cl Inv
Less: over obsorption

80000
60000
75000
135000
63000
25000

47000
33000

b) Marginal Costing
SP
VC - 15000*4
Less: Closing Inv

80000
60000
28000
32000

Gross Profit
Fixed cost
Loss

48000
50000
-2000

CANTEEN

MAINTANENANCE

29,650.00
600.00
2,227.00
320.00

453.00
33,250.00
-33250
-

Basis of apportionment

15,460.00 Actual
Actual
742.00 Area
107.00 Area
172.00 power usage
151.00 Area
val of mach
16,632.00
direct lab
-16632 Machine usage
-

6000

2000

1
5

Total

open inv
prod
SALES

15000
-8000
7000

31.03.03
0
8500
-7000
1500

30.09.03
1500
7000
-8000
500

under/over obsorption
31.03.03
Normal output
Budgeted ouput
std fixed prod oh

8000
8500
500
20
10000

30.03.03
8000
7000
1000
20
20000

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