BAB

BIAYA: Konsep,
Klasifikasi dan
2
Perilaku
Manufacturing Cost Concepts

Financial Managerial
Accounting Accounting
Cost is a measure of Product costs are the
resources used or costs a company
given up to achieve a assigns to units
stated purpose. produced.
 Manufacturing Costs

Direct
Direct Direct
Direct Manufacturing
Manufacturing
Materials
Materials Labor
Labor Overhead
Overhead

The Product
 Classifications of Costs

Manufacturing costs are often

combined as follows:
Direct
Direct Direct
Direct Manufacturing
Manufacturing
Materials
Materials Labor
Labor Overhead
Overhead

Prime Conversion
Cost Cost
 Nonmanufacturing Costs
Marketing and selling costs . . .
– Costs necessary to get the order and deliver the
product.
Administrative costs . . .
– All executive, organizational, and clerical costs.
Product Costs Versus Period
Costs
Product costs include Period costs are not
direct materials, direct
included in product
labor, and
manufacturing costs. They are
overhead. expensed on the
Inventory Cost of Good Sold
incomeExpense
statement.
Sale

Balance Income Income

Sheet Statement Statement
 Balance Sheet
Merchandiser Manufacturer
Current Assets Current Assets
– Cash  Cash
– Receivables  Receivables
– Prepaid Expenses  Prepaid Expenses
– Merchandise Inventory  Inventories
Raw Materials
Work in Process
Finished Goods
 Balance Sheet
Merchandiser Manufacturer
Current Assets Current Assets
– Cash  Cash
– Receivables  Receivables
Materials waiting to
– Prepaid Expenses  Prepaid Expenses
be processed.
– Merchandise Inventory  Inventories
Partially complete
Raw Materials
products – some
Work in Process
material, labor, or
overhead has been Finished Goods
added.
Completed products
awaiting sale.
 The Income Statement
Cost of goods sold for manufacturers differs only
slightly from cost of goods sold for merchandisers.

Merchandising Company Manufacturing Company

Cost of goods sold: Cost of goods sold:
Beg. merchandise Beg. finished
inventory $ 14,200 goods inv. $ 14,200
+ Purchases 234,150 + Cost of goods
Goods available manufactured 234,150
for sale $ 248,350 Goods available
- Ending for sale $248,350
merchandise - Ending
inventory (12,100) finished goods
= Cost of goods inventory (12,100)
sold $ 236,250 = Cost of goods
sold $236,250
 Manufacturing Cost Flows
Income
Balance Sheet Statement
Costs Inventories Expenses
Material Purchases Raw Materials
 Manufacturing Cost Flows
Income
Balance Sheet Statement
Costs Inventories Expenses
Material Purchases Raw Materials

Direct Labor Work in

Process
Manufacturing
Overhead
 Manufacturing Cost Flows
Income
Balance Sheet Statement
Costs Inventories Expenses
Material Purchases Raw Materials

Direct Labor Work in

Process
Manufacturing
Overhead Cost of
Finished
Goods
Goods
Sold
 Manufacturing Cost Flows
Income
Balance Sheet Statement
Costs Inventories Expenses
Material Purchases Raw Materials

Direct Labor Work in

Process
Manufacturing
Overhead Cost of
Finished
Goods
Goods
Sold

Selling and Period Costs Selling and

Administrative Administrative
 Inventory Flows
Beginning
Beginning Additions
Additions Available
Available
balance
balance + $$$
$$$
= $$$$$
$$$$$
$$
$$
_
Withdrawals
Withdrawals
$$$
$$$

=
Ending
Ending
balance
balance
$$
$$
 Product Costs - A Closer Look
Manufacturing Work
Raw Materials Costs In Process

Beginning raw
materials inventory

Beginning
Beginning inventory
inventory
is
is the
the inventory
inventory
carried
carried overover from
from
the
the prior
prior period.
period.
 Product Costs - A Closer Look
Manufacturing Work
Raw Materials Costs In Process

Beginning raw Direct materials

materials inventory
+ Raw materials
purchased
= Raw materials
available for use
in production
– Ending raw materials
inventory
= Raw materials used As
Asitems
itemsare
areremoved
removedfrom
from raw
raw
in production materials
materialsinventory
inventoryand
andplaced
placedinto
into
the
theproduction
productionprocess,
process, they
theyare
are
called
calleddirect
direct materials.
materials.
 Product Costs - A Closer Look
Manufacturing Work
Raw Materials Costs In Process
Conversion
Conversion
Beginning raw Direct materials
materials inventory + Direct labor
costs
costsare
arecosts
costs
+ Raw materials + Mfg. overhead incurred
incurredtoto
purchased = Total manufacturing convert
convert the
the
= Raw materials costs
available for use
direct
directmaterial
material
in production into
intoaafinished
finished
– Ending raw materials product.
product.
inventory
= Raw materials used
in production
 Product Costs - A Closer Look
Manufacturing Work
Raw Materials Costs In Process

Beginning raw Direct materials Beginning work in

materials inventory + Direct labor process inventory
+ Raw materials + Mfg. overhead + Total manufacturing
purchased = Total manufacturing costs
= Raw materials costs = Total work in
available for use process for the
in production period
– Ending raw materials – Ending work in
inventory All
All manufacturing
manufacturingcosts
costs incurred
incurred
process inventory
= Raw materials used during
duringthe
theperiod
periodare added
= Cost
are to
tothe
of goods
added the
in production manufactured.
beginning
beginningbalance
balanceof
of work
workin
in
process.
process.
 Product Costs - A Closer Look
Manufacturing Work
Raw Materials Costs In Process

Beginning raw Direct materials Beginning work in

materials inventory + Direct labor process inventory
+ Raw materials + Mfg. overhead + Total manufacturing
purchased = Total manufacturing costs
= Raw materials costs = Total work in
available for use process for the
in production period
– Ending raw materials – Ending work in
Costs associated
associatedwith
inventory
Costs withthe
thegoods
goodsthat that process inventory
= Raw materials used = Cost of goods
are
areincompleted
completed during
duringthe
theperiod
periodare are
production manufactured.
transferred
transferredto
tofinished
finishedgoods
goods
inventory.
inventory.
Product Costs - A Closer Look
Work
In Process Finished Goods

Beginning work in Beginning finished

process inventory goods inventory
+ Manufacturing costs + Cost of goods
for the period manufactured
= Total work in process = Cost of goods
for the period available for sale
– Ending work in - Ending finished
process inventory goods inventory
= Cost of goods Cost of goods
manufactured sold
 Cost Classifications for
Predicting Cost Behavior
How
How aa cost
cost will
will react
react to
to
changes
changes in
in the
the level
level of
of
business
business activity.
activity.
–– Total
Totalvariable
variablecosts
costs
change
changewhen
whenactivity
activity
changes.
changes.
–– Total
Totalfixed
fixedcosts
costs
remain
remainunchanged
unchanged
when
whenactivity
activitychanges.
changes.
 Total Variable Cost
Your total long distance telephone bill is
based on how many minutes you talk.
Total Long Distance
Telephone Bill

Minutes Talked
 Variable Cost Per Unit
The cost per long distance minute talked is
constant. For example, 10 cents per minute.

Telephone Charge
Per Minute

Minutes Talked
 Total Fixed Cost
Your monthly basic telephone bill probably
does not change when you make more local
calls.
Telephone Bill
Monthly Basic

Number of Local Calls

 Fixed Cost Per Unit
The average cost per local call decreases as
more local calls are made.

Monthly Basic Telephone

Bill per Local Call
Number of Local Calls
 Cost Classifications for
Predicting Cost Behavior
Behavior of Cost (within the relevant range)
Cost In Total Per Unit

Variable Total variable cost changes Variable cost per unit remains
as activity level changes. the same over wide ranges
of activity.
Fixed Total fixed cost remains Fixed cost per unit goes
the same even when the down as activity level goes up.
activity level changes.
Direct Costs and Indirect Costs
Direct costs Indirect costs
• Costs that can be • Costs cannot be easily
easily and conveniently and conveniently traced
traced to a unit of to a unit of product or
product or other cost other cost object.
objective. • Example:
• Examples: direct manufacturing
material and direct labor overhead
Differential Costs and Revenues
Costs and revenues that differ among
alternatives.
Example: You have a job paying $1,500 per month in
your hometown. You have a job offer in a neighboring
city that pays $2,000 per month. The commuting cost
to the city is $300 per month.

Differential revenue is:

$2,000 – $1,500 = $500
Differential Costs and Revenues
Costs and revenues that differ among
alternatives.
Example: You have a job paying $1,500 per month in
your hometown. You have a job offer in a neighboring
city that pays $2,000 per month. The commuting cost
to the city is $300 per month.

Differential revenue is:

$2,000 – $1,500 = $500
Differential cost is:
$300
 Opportunity Costs
The potential benefit that
is given up when one
alternative is selected
over another.
Example: If you were
not attending college,
you could be earning
$15,000 per year.
Your opportunity cost
of attending college for one
year is $15,000.
 Sunk Costs
Sunk costs cannot be changed by any decision.
They are not differential costs and should be
ignored when making decisions.
Example: You bought an automobile that cost
$10,000 two years ago. The $10,000 cost is
sunk because whether you drive it, park it,
trade it, or sell it, you cannot change the
$10,000 cost.
End of Chapter 2
Sample case
 Resource Flows
Beginning raw materials inventory was $32,000.
During the month, $276,000 of raw material was
purchased. A count at the end of the month
revealed that $28,000 of raw material was still
present. What is the cost of direct material
used?
• a. $276,000
• b. $272,000
• c. $280,000
• d. $ 2,000
 Resource Flows
Beginning raw materials inventory was $32,000.
During the month, $276,000 of raw material was
purchased. A count at the end of the month
revealed that $28,000 of raw material was still
present. What is the cost of direct material
used? Beg. raw materials $ 32,000
+ Raw materials
• a. $276,000 purchased 276,000
= Raw materials available
• b. $272,000 for use in production $ 308,000
– Ending raw materials
• c. $280,000 = Rawinventory 28,000
materials used
• d. $ 2,000 in production $ 280,000
 Resource Flows
Direct materials used in production totaled
$280,000. Direct Labor was $375,000 and
factory overhead was $180,000. What were
total manufacturing costs incurred for the
month?
• a. $555,000
• b. $835,000
• c. $655,000
• d. Cannot be determined.
 Resource Flows
Direct materials used in production totaled
$280,000. Direct Labor was $375,000 and
factory overhead was $180,000. What
were total manufacturing costs
Direct Materials
+ Direct Labor
incurred for
$ 280,000
375,000
the month? + Mfg. Overhead
= Mfg. Costs Incurred
180,000

• a. $555,000 for the Month $ 835,000

• b. $835,000
• c. $655,000
• d. Cannot be determined.
 Resource Flows
Beginning work in process was $125,000.
Manufacturing costs incurred for the month
were $835,000. There were $200,000 of
partially finished goods remaining in work in
process inventory at the end of the month.
What was the cost of goods manufactured
during the month?
• a. $1,160,000
• b. $ 910,000
• c. $ 760,000
• d. Cannot be determined.
 Resource Flows
Beginning work in process was $125,000.
Manufacturing costs incurred for the month
were $835,000. There were $200,000 of
partially finished goods remaining in work in
process inventory at the end of the month.
What was the cost of goods manufactured
Beginning work in
process inventory $ 125,000
during the month? + Mfg. costs incurred

• a. for the period

$1,160,000 = Total work in process
835,000

• b.
during the period $ 960,000
$ 910,000 – Ending work in
process inventory 200,000
• c. $ 760,000 = Costmanufactured
of goods
$ 760,000
• d. Cannot be determined.
 Cost Behavior
Fixed costs are usually characterized by:

a. Unit costs that remain constant.

b. Total costs that increase as activity
decreases.
c. Total costs that increase as activity
increases.
d. Total costs that remain constant.
 Cost Behavior
Fixed costs are usually characterized by:

a. Unit costs that remain constant.

b. Total costs that increase as activity
decreases.
c. Total costs that increase as activity
increases.
d. Total costs that remain constant.
 Cost Behavior
Variable costs are usually characterized by:
a. Unit costs that decrease as activity
increases.
b. Total costs that increase as activity
decreases.
c. Total costs that increase as activity
increases.
d. Total costs that remain constant.
 Cost Behavior
Variable costs are usually characterized by:
a. Unit costs that decrease as activity
increases.
b. Total costs that increase as activity
decreases.
c. Total costs that increase as activity
increases.
d. Total costs that remain constant.