Case Study Of Krispy Kreme

Case Study Of Krispy Kreme

CHAPTER 3
COSTS CONCEPTS and CLASSIFICATION

[Problem 1]
1. Direct labor P10
Variable factory overhead   15
Fixed factory overhead     6
Unit conversion cost P31

2. Direct materials P32
Direct labor   10
Unit prime cost P42

3. Unit prime cost P42
Variable factory overhead   15
Unit variable cost P57

4. Total production cost   (12,000 units x P63)   P756,000

[Problem 2]
1. Indirect materials and factory supplies P   68,000
      Supervising salaries     90,000
      Repairs and maintenance     40,000
Heat, light and power     28,000 Overtime premium – plant worker     20,000
Fringe benefits for plant worker     15,000
Depreciation – plant   190,000
Insurance – plant     22,000
Actual factory overhead P473,000

2. Applied factory overhead   (71,000DLH x P7.50)   =   P532,500

3. Actual factory overhead P473,000
Less: Applied factory overhead   532,000
Overapplied factory overhead P( 59,500)

4.. Factory overhead shown on the
      statement of cost of goods manufactured P473,000

[Problem 3]
  1. Unit cost = =     P4.35

  2. Cost of goods sold   =   360,000 units x P4.35   =   P1,566,000

  3. Inventory – Aug. 31   =   40,000 units x P4.35     =   P174,000

[Problem 4]
|   |                                                 |   |                   |Dep|   |                   |
|   |                                                 |   |                   |art|   |                   |
|   |                                                 |   |                   |men|   |                   |
|   |                                                 |   |                   |t A|   |                   |
|   |     (P250,000 x 120 / 400)                     |   |                   |75,|   |                   |
|   |                                                 |   |                   |000|   |                   |
|   |...