EXERCISES: 2.57, 2.58, 2.63, 11.33, 11.34

201 EXERCISES: 2.57, 2.58, 2.63, 11.33, 11.34 Μάθημα: ΔΙΟΙΚΗΤΙΚΗ ΛΟΓΙΣΤΙΚΗ Μεταπτυχιακοί Φοιτητές: Θεοδωρακόπουλος Παναγιώτης Καλοκάσης Ευάγγελος Κοτρωνιά Ζωή Μπουρούνη Ελένη Διδάσκουσα: κ. Σ. Κοέν 1

Exercise 2.57 The following data refer to Fresno Fashions Company for the year 20X2: Sales revenue $ 945.000 Work-in-process inventory, December 31 30.000 Work-in-process inventory, January 1 40.000 Selling and administrative expenses 145.000 Income tax expense 80.000 Purchases of raw materials 180.000 Raw-material inventory, December 31 25.000 Raw-material inventory, January 1 40.000 Direct labor 200.000 Utilities: plant 40.000 Depreciation: plant and equipment 60.000 Finished-goods inventory, December 31 50.000 Finished goods inventory, January 1 20.000 Indirect material 11.000 Indirect labor 16.000 Other manufacturing overhead 76.000 Required: a. Prepare Fresno Fashion's schedule of cost of goods manufactured for the year. b. Prepare Fresno Fashion's schedule of cost of goods sold for the year. c. Prepare Fresno Fashion's income statement for the year. d. Build and Excel spreadsheet to complete requirements a through c. Solution a. Schedule of cost of goods manufactured for the year Beginning work-in-process inventory, January 1 40.000 Raw materials inventory, January 1 40.000 + Purchases of raw materials + 180.000 Raw materials available for use 220.000 - Raw materials inventory, December 31-25.000 Total direct material costs 195.000 Direct labor 200.000 Manufacturing overhead Utilities: Plant 40.000 + Depreciation: plant and equipment 60.000 + Indirect material 11.000 + Indirect labor 16.000 + Other manufacturing overhead 78.000 Total manufacturing overhead 205.000 2

Total manufacturing costs for the year 600.000 + Work-in-process inventory, January 1 40.000 - Ending work-in-process inventory, December 31 30.000 Cost of goods manufactured for the year 610.000 b. Schedule of cost of goods sold for the year Finished goods inventory, January 1 20.000 + Cost of goods manufactured during the year 610.000 Finished goods available for sale 630.000 - Finished goods inventory, December 31 50.000 Cost of goods sold for the year 580.000 c. Fresno Fashion's income statement Fresno Fashion Income statement For the year ended December 31 Sales revenue 945.000 - Cost of goods sold 580.000 Gross margin 365.000 - Selling and administrative expenses 145.000 Operating profit 220.000 Net income before taxes 220.000 - Income tax expense 80.000 Net income after taxes 140.000 3

Exercise 2.58 Sacramento Electronics Corporation incurred the following costs during 20X1. The company sold all of its products manufactured during the year. Direct material 2.900.000 Direct labor 1.950.000 Manufacturing overhead: Utilities (primarily electricity) 140.000 Depreciation on plant and equipment 230.000 Insurance 150.000 Supervisory salaries 300.000 Property taxes 220.000 Selling costs: Advertising 195.000 Sales commissions 90.000 Administrative costs: Salaries of top management and staff 369.000 Office supplies 40.000 Depreciation on building and equipment 75.000 During the 20X1, the company operated at about half of its capacity due to a slowdown in the economy. Prospects for 20X2 are slightly better. The marketing manager forecasts a 20 percent growth in sales over 20X1 level. Required Categorize each of the preceding costs as most likely variable or fixed. Forecast the 20X2 amount for each cost item. Solution Cost Prediction Category Direct material 2.900.000 Variable 3.480.000 Direct labor 1.950.000 Variable 2.340.000 Manufacturing overhead: Utilities (primarily electricity) 140.000 Fixed 140.000 Depreciation on plant and equipment 230.000 Fixed 230.000 Insurance 150.000 Fixed 150.000 Supervisory salaries 300.000 Fixed 300.000 Property taxes 220.000 Fixed 220.000 Selling costs: Advertising 195.000 Fixed 195.000 Sales commissions 90.000 Variable 108.000 Administrative costs: Salaries of top management and staff 369.000 Fixed 369.000 Office supplies 40.000 Fixed 40.000 Depreciation on building and equipment 75.000 Fixed 75.000 4

Exercise 2.63 Each of the following columns is independent and for a different company. Use the data given, which refers to one year for example, to find the unknown account balances. Account Company 1 2 3 Finished-goods inventory, January 1 $1,900 (d) $17,200 Finished-goods inventory, December 31 300 $4,400 28,400 Work-in-process inventory, January 1 2,700 6,700 82,400 Work-in-process inventory, December 31 3,800 3,100 76,730 Raw-material inventory, January 1 (a) 3,500 16,000 Raw-material inventory, December 31 3,600 2,900 14,100 Purchases of raw materials 16,100 12,000 64,200 Cost of goods manufactured during the (b) 27,220 313,770 year Total manufacturing costs 55,550 23,600 308,100 Cost of goods sold 56,050 27,200 302,570 Gross margin (c) 16,400 641,280 Direct material used 15,300 (e) 66,100 Direct labor 26,450 3,800 124,700 Manufacturing overhead 13,800 7,200 (g) Sales revenue 103,300 (f) 943,850 a) Raw material inventory, January 1 + Purchases of raw materials - Raw material, December 31 = Direct material used (a) + 16,100 3,600 = 15,300 (a) = 2,800 b) Work in process inventory, January 1 + (Direct material used + Direct labor + Manufacturing overhead) - Work in process inventory, December 31 = Cost of goods manufactured during the year 2,700 + (15,300 + 26,450 + 13,800) 3,800 = (b) (b) = 54,450 c) 5

Sales revenue Cost of goods sold = Gross margin 103,300 56,050 = (c) (c) = 47,250 d) Beginning finished goods inventory, January 1 + Cost of goods manufactured during the year Ending finished goods inventory, December 31 = Costs of goods sold (d) + 27,220 4,400 = 27,200 (d) = 4,380 e) Beginning raw material inventory, January 1 + Purchases of raw materials - Ending raw material inventory, December 31 = Direct material used 3,500 + 12,000 2,900 = (e) (e) = 12,600 f) Sales revenue Costs of goods sold = Gross margin (f) 27,200 = 16,400 (f) = 43,600 g) Manufacturing overhead + Direct labor + Direct material used = Total manufacturing costs 308,100 = (g) + 124,700 + 66,100 (g) = 117,300 Exercise 11.33 Fast Eddie s Limo Service operates a fleet of limousines. Management wants to estimate the fixed and variable costs per mile. A recent trade publication indicated that variable costs should be no more than $.25 per mile. To check his costs against those indicated in the trade journal, Fast Eddie collected the following data for his limousine fleet for last month: 6

Limousine Number Costs ($) Miles 1 3500 12400 2 3400 11800 3 3200 10600 4 3800 11500 5 3500 11800 6 4000 13200 7 3200 9800 8 3000 9200 9 4200 11700 10 3900 12300 Required a. Use the high low method to estimate the fixed and variable portions of overhead costs based on miles driven. b. What is the estimated total cost of driving one limousine 10,000 miles? c. Fast Eddie has heard that the high low method has a major limitation compared to simple regression. What is it? Solution: a. Με βάση τα δεδομένα παρατηρεί κανείς πως για τον μεγαλύτερο αριθμό μιλίων(13.200) το κόστος είναι $4.000 και των μικρότερο αριθμό μιλίων(9.200) το κόστος είναι $3000. Συνεπώς με βάση την ανάλυση χαμηλού-υψηλού θα έχουμε: V = 4000 3000 13200 9200 = 1000 =0,25 $/mile 4000 Με τον υπολογισμό του μεταβλητού κόστους, μπορούμε πλέον βάση αυτού να υπολογίσουμε και το σταθερό κόστος βασιζόμενοι στον μεγαλύτερο είτε μικρότερο αριθμό μιλίων. Συνεπώς θα έχουμε: FC max =4000 0,25*13200 = $700 &FC min = 3000 0,25*9200 = $700 b. Το συνολικό κόστος που θα επέλθει από την χρήση μίας λιμουζίνας για 10000 miles, θα είναι: TC= FC + VC*miles= 700 + 10000*0,25 = 700 + 2500 = $3200 Η Ανάλυση χαμηλού-υψηλού κόστους σε αντίθεση με την Απλή Γραμμική Παλινδρόμηση χρησιμοποιεί μόνο την μέγιστη και ελάχιστη τιμή για τον υπολογισμό του Μεταβλητού και Σταθερού κόστους. Αντίθετα, στην Απλή Απλή Γραμμική 7

Παλινδρόμηση εξετάζονται όλες οι τιμές. Συμπερασματικά λοιπόν θα έλεγε κανείς πως στην Ανάλυση χαμηλού-υψηλού κόστους εξάγουμε μικρότερης ακρίβειας πληροφόρηση. Exercise 11.34 Refer to the data for Fast Eddie s Limousine Service in Exercise 11.33 Required: Build your own spreadsheet. Using miles as the cost driver, build an Excel spreadsheet to derive the simple regression results and estimated total cost for Fast Eddie s Limousine Service. Limousine Costs Miles Number 1 3.500 12.400 2 3.400 11.800 3 3.200 10.600 4 3.800 11.500 5 3.500 11.800 6 4.000 13.200 7 3.200 9.800 8 3.000 9.200 9 4.200 11.700 10 3.900 12.300 total 114.300 Αποτελέσματα απλής παλινδρόμησης : SUMMARY OUTPUT Regression Statistics Multiple R 0,754752487 R Square 0,569651316 Adjusted R 0,515857731 8

Square Standard Error 272,5599779 Observations 10 ANOVA df SS MS F Significance F Regression 1 786688,4675 786688,4675 10,58957701 0,011628397 Residual 8 594311,5325 74288,94156 Total 9 1381000 Coefficients Standard Error t Stat P-value Intercept 810,9177098 852,2320386 0,951522207 0,369197951 X Variable 1 0,241389527 0,074178683 3,254163027 0,011628397 Lower 95% Upper 95% Lower 95,0% Upper 95,0% Intercept -1154,33289 2776,168313-1154,332894 2776,16831 X Variable 1 0,070333178 0,412445876 0,070333178 0,41244588 RESIDUAL OUTPUT Observatio n Predicted Y Residuals Standard Residuals 1 3804,14784 1-304,1478409-1,183583531 2 3659,31412 5-259,3141249-1,009114274 3 3369,64669 3-169,6466928-0,660175759 4 3586,89726 7 213,1027331 0,829283827 5 3659,31412 5-159,3141249-0,619966836 6 3997,25946 2 2,740537738 0,010664732 7 3176,53507 1 23,46492852 0,091313168 8 3031,70135 5-31,70135546-0,123365013 9 3635,17517 2 564,8248278 2,198001348 10 3780,00888 8 119,9911118 0,466942338 9

Η εξίσωση του συνολικού κόστους (TC=FC+VC*Q) είναι της μορφής: Υ = bo +b1 Χ+ e όπου: Y: cost και Χ: miles Από την παλινδρόμηση προκύπτει ότι: bo=810,92 και b1=0,241 Συνολικά μίλια: Χ= 114.300 miles Επομένως το συνολικό κόστος (TC) είναι: Υ = 810,92 + 0,241 114.300 = 810,92 + 27.546,3 = 28.357,22$ X Variable 1 Line Fit Plot Y Y Predicted Y X Variable 1 10

X Variable 1 Residual Plot Residuals X Variable 1 11