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Documents - Tips Ringo Rag Company
Documents - Tips Ringo Rag Company
The Ringo Rag Company purchases scrap cotton fabric which is then
converted into handy cleaning rags in usable size, after it is cleaned and graded.
Main customers for these rags are garages, service stations, factories, and machine
shops. The company buys its rags from three sources: textile converters,
commercial laundries, and junk dealers.
The production process for the company is not complicated. First, rags
purchased from junk dealers are washed and dried in special heavy duty machines.
The cleaned rags and those purchased from laundries, which are already washed,
move next to the grading department. Here, each rag is inspected and graded
according to its absorption ability as either A, B, or C quality, with A as the best
grade. Textile converters sell their spoils (rags) clean and already grade. Next, the
rags are cut into squares of about 1 to 1,5 feet. A the same time, any attached item
such as buttons, metal ornaments, or snaps are removed. Rags purchased from
textile converters do not have anything attached to them. Prices of material which
are too small for futher cutting or contain holes or are not usable for any either
reason are burned. The cut rags are then packaged in 5, 10, 20, and 50 pound
cartons.
Raw material costs vary by source. Textile converters charge $6.00, $5.00,
and $4,00 per cwt (hundred weight) for grade A, B, and C, respectively. Twenty
percent of the weight purchased is lost as waste during the cutting process. This is
referred to as loss factor. Last month, the following quantities were purchased
from textile converters:
Grade A 43,750 lb
Grade B 25,000 lb
Grade C 6,250 lb
Although each purchase was a little different, the company usually had to
agree to take some quantity of C grade fabric when it bought A grade fabric.
Laundries charge $3.00 per cwt. Past experience indicates a 33.33% loss
factor. The yield ratio of material from the laundries is typically about grade A,
grade B, and grade C. Last month, Ringo purchased 60,000 pounds of material
from laundries.
The highest loss factor is incurred from material purchased from junk dealers,
where it amounts to 50%. The junk dealers price for material is $1.00 per cwt. Last
month, the company purchased 50,000 pounds from this source. This ungraded
material usually yield about 1/5 grade A, 2/5 grade B, and 2/5 grade C rags, about
half of the overall loss occurs in grading and about half in cutting.
Last months production and sales (cleaned, cut, and boxed) in pounds, was:
Sold
Produce
Grade Pound $
d
s
Grade 50,000 50,000 $7,750
A
Grade 50,000 50,000 $6,500
B
Grade 25,000 25,000 $3,125
C
Total 125,000 125,00 $17,37
0 5
All sales are local, and orders are received by phone or mail.
Last months production activities, sources of materials, prices, costs, and
yields are representative of normal operations. Sales usually follow production very
closely, with very little seasonal fluctuation.
Two foremen are employed by the company, each paid $7,500 per year. Both
are nephews of Mr. Ringo. One-fourth of their time is spent loading and unloading
the washers and dryers. Another quarter of their time is spent supervising and
checking the women.
The two washer and dryer set owned by the company are depreciated over 5
years on a straight-line basis. Each set has a capacity of 100 pounds per load and
can cycle about 16 loads during a working day.
Expenses other than raw material and labor for a typical year are as follows:
This case was written as part of a student project to provide cost analysis and
business advice for the company. Mr. Ringo said he agreed to the project because
he had no formal cost accounting records at all. He said he and Mr. Wall ran the
business pretty much on their intuition and they often wondered whether there
might be more profitable ways to do things.
For example, Mr. Wall had asked him once why he bothered to sort the junk
rags at all since almost half of them are C grade anyway. He didnt really have a
good answer, and the question had led him to wonder whether he shouldnt perhaps
drop the junk altogether when the washer/dryers wore out in a few years. He liked
the idea of having several sources for raw material so he could shop around to keep
his purchase prices low, but he couldnt prove to himself whether he was buying the
right mix.
He and Mr. Wall built up a good set of steady customers over the years with
good service and good quality at competitive prices. But they had no idea which
products were most profitable.
QUESTIONS:
You first task is to calculate contribution margin and full cost profit for each of
the 5 different purchasing sources (Junk, Laundry, Tex A, Tex B, and Tex C). We
suggest you start as follows:
Now, what does this have to do with the management issues? Specifically:
B. Profil Perusahaan.
C. Proses Produksi.
Proses produksi bagi perusahaan tidak rumit. Pertama, kain yang dibeli dari
dealer sampah dicuci dan dikeringkan dalam mesin cuci heavy duty (tugas
khusus yang berat). Kain bersih yang dibeli dari binatu, sudah dicuci , masuk ke
departemen grading. Di sini , masing-masing kain diperiksa dan dinilai sesuai
dengan kemampuan penyerapan baik sebagai kualitas A , B , atau C, dengan
kualitas A sebagai kelas terbaik . Konverter Tekstil menjual kain mereka yang
sudah bersih dan sudah dinilai kelasnya. Selanjutnya, kain dipotong menjadi
kotak dari sekitar 1 sampai 1,5 meter. Pada saat yang sama , setiap item yang
melekat seperti tombol , ornamen logam , atau terkunci dihapus . Kain yang
dibeli dari konverter tekstil tidak punya apa-apa yang menyertainya.
D. Harga Jual.
Setelah kain dipotong-potong menjadi ukuran kotak sekitar 1 sampai 1,5 meter,
kemudian dikemas dalam 5, 10, 20, dan 50 karton pound. Adapun Harga jual
adalah sebagai berikut (dikutip FOB gudang ) :
Dua puluh persen (20%) dari berat yang dibeli hilang sebagai limbah selama
proses pemotongan . Hal ini disebut sebagai "faktor kehilangan (Loss factor)".
Bulan lalu, jumlah yang dibeli dari konverter tekstil adalah sebagai berikut:
Grade A 43,750 lb
Grade B 25,000 lb
Grade C 6,250 lb
Produksi bulan lalu dan penjualan ( dibersihkan , dipotong , dan kotak ) dalam
pound , adalah :
Sold
Produce
Grade Pound $
d
s
Grade 50,000 50,000 $7,750
A
Grade 50,000 50,000 $6,500
B
Grade 25,000 25,000 $3,125
C
Total 125,000 125,00 $17,37
0 5
Semua penjualan bersifat lokal, dan pesanan yang diterima melalui telepon
atau surat.
Kegiatan produksi bulan lalu, sumber bahan, harga, biaya, dan hasil mewakili
operasi normal. Penjualan biasanya mengikuti produksi yang sangat erat ,
dengan sangat sedikit fluktuasi musiman .
Kedua mesin cuci dan pengering set yang dimiliki oleh perusahaan disusutkan
selama 5 tahun secara garis lurus . Setiap set memiliki kapasitas 100 pound per
beban dan dapat siklus sekitar 16 beban selama hari kerja .
Beban lain selain bahan baku dan tenaga kerja untuk satu tahun khas adalah
sebagai berikut :
J. Question 1.
Jawab:
Pon (bhs belanda) = Pound (Bhs Inggris); disingkat: lb, lbm) adalah satuan massa
(Berat).
K. Question 2.
Grade B
Konverter Tekstil-
Tex B 25,000 1-20% 20,000 0.40 2,600
1/2*2/
Binatu 60,000 3 20,000 0.40 2,600
2/5*1/
Dealer Sampah 50,000 2 10,000 0.20 1,300
50,000 1.00 6,500
Grade C
Konverter Tekstil-
Tex C 6,250 1-20% 5,000 0.20 625
1/4*2/
Binatu 60,000 3 10,000 0.40 1,250
2/5*1/
Dealer Sampah 50,000 2 10,000 0.40 1,250
25,000 1.00 3,125
Average
Revenue per
Pound ($/lb) $0.067 $0.090 $0.155 $0.130 $0.125
L. Question 3.
Diminta: Hitung biaya bahan baku per pon dijual , untuk setiap sumber .
Jawab:
Conversi
Material on Material
Cost cwt to lb Cost
(dibagi
(per cwt) 100) (per lb)
(1) (2) (3=1/2)
Binatu $3 100 $0.03
Dealer Sampah $1 100 $0.01
Konverter Tekstil-
Tex A $6 100 $0.06
Konverter Tekstil-
Tex B $5 100 $0.05
Konverter Tekstil-
Tex C $4 100 $0.04
Materi Material
Material Unit Unit al Total cost
Materi per
Purchased Loss Sold Cost al pound
(lb) (lb) (lb) per lb Cost sold
(3=1+2 (5=1*4
(1) (2) ) (4) ) (6=5/3)
Binatu 60,000 20,000 40,000 $0.03 $1,800 $0.045
Dealer Sampah 50,000 25,000 25,000 $0.01 $500 $0.020
Konverter Tekstil-
Tex A 43,750 8,750 35,000 $0.06 $2,625 $0.075
Konverter Tekstil-
Tex B 25,000 5,000 20,000 $0.05 $1,250 $0.063
Konverter Tekstil- 6,250 1,250 5,000 $0.04 $250 $0.050
Tex C
125,000 $6,425
M. Question 4.
Jawab:
Gradin
g Direct Cost
Labou
Sold r per Total Cost
Kompos
(lb) isi (jam) jam Cost per lb
(2=1/2 (5=3* (6=5/
(1) ) (3) (4) 4) 1)
40,00 0.017
Binatu 0 0.62 620 1.1 682 05
25,00 0.016
Dealer Sampah 0 0.38 380 1.1 418 72
65,00
0 1.00 1000 1000
Cuttin
g Direct Cost
Labou
Sold r per Total Cost
Kompos
(lb) isi (jam) jam Cost per lb
(2=1/2 (5=3* (6=5/
(1) ) (3) (4) 4) 1)
40,00 0.026
Binatu 0 0.32 960 1.1 1056 4
25,00 0.026
Dealer Sampah 0 0.20 600 1.1 660 4
Konverter Tekstil- 35,00 0.026
Tex A 0 0.28 840 1.1 924 4
Konverter Tekstil- 20,00 0.026
Tex B 0 0.16 480 1.1 528 4
Konverter Tekstil- 0.026
Tex C 5,000 0.04 120 1.1 132 4
125,0
00 1.00 3000 3300
N. Question 5.
Diminta: Hitung biaya pengepakan ( tenaga kerja dan bahan ) per pon dijual .
Jawab:
Packin
g Cost Direct Cost
Labou
Sold r per Total Cost
Kompos
(lb) isi (jam) jam Cost per lb
(2=1/2 (5=3* (6=5/
(1) ) (3) (4) 4) 1)
40,00 0.005
Binatu 0 0.32 192 1.1 211.2 28
25,00 0.005
Dealer Sampah 0 0.20 120 1.1 132 28
Konverter Tekstil- 35,00 0.005
Tex A 0 0.28 168 1.1 184.8 28
Konverter Tekstil- 20,00 0.005
Tex B 0 0.16 96 1.1 105.6 28
Konverter Tekstil- 0.005
Tex C 5,000 0.04 24 1.1 26.4 28
125,0
00 1.00 600 660
Boxes
Cost Box Harga
Sold yang Box Total Cost
dibutuhk per
(lb) an unit Cost per lb
(4=2* (5=4/
(1) (2) (3) 3) 1)
40,00
Binatu 0 800 0.1 80 0.002
25,00
Dealer Sampah 0 500 0.1 50 0.002
Konverter Tekstil- 35,00
Tex A 0 700 0.1 70 0.002
Konverter Tekstil- 20,00
Tex B 0 400 0.1 40 0.002
Konverter Tekstil-
Tex C 5,000 100 0.1 10 0.002
125,0
00 2,500 250
O. Question 6.
Diminta: Hitung overhead variabel per pon dijual untuk sumber sampah .
Jawab:
P. Question 7.
Jawab:
Dealer Konverter Tekstil (Textile
Sampah Binatu Converter)
(Junk (Laundri
Dealer) es) Tex A Tex B Tex C
Revenue 0.07 0.09 0.16 0.13 0.13
Variable Cost:
0.0500
Raw Material 0.02000 0.04500 0.07500 0.06300 0
Labour 0.0000
(Grading) 0.01672 0.01705 0.00000 0.00000 0
Labour 0.0264
(Cutting) 0.02640 0.02640 0.02640 0.02640 0
Labour 0.0052
(Packing) 0.00528 0.00528 0.00528 0.00528 8
0.0020
Labour (Boxes) 0.00200 0.00200 0.00200 0.00200 0
Total Variable 0.0836
Cost 0.07040 0.09573 0.10868 0.09668 8
Q. Question 8.
Diminta: Butir 7 less item 8 merupakan laba biaya penuh oleh sumber.
Jawab:
S. Management Issues 1.
Diminta:
Jawab:
T. Management Issues 2.
Diminta:
Jawab:
U. Management Issues 3.
Diminta:
Jawab:
V. Management Issues 4.
Diminta:
Jawab:
W. Management Issues 5.
Diminta:
Jawab: