Nona Manies

Accounting Report

Nico Wijaya (180030045)

Geraldy Edberg (180030041)

Steffani (180030055)

Viarni Riangdy (180030058)

 Table of Content

Company Profile...................................................................................................2

Organization Chart................................................................................................2

Design of Factory..................................................................................................3

Product Design......................................................................................................4

Sales Forecast.......................................................................................................5

Manufacturing Process.........................................................................................5

Product Pricing.....................................................................................................8

Departmental Expense Allocation........................................................................9

Departmental Income Statement.........................................................................10

Break-Even Point................................................................................................11

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I. Company Profile

Having a great passion in baking since young make us decided to get in into the brownies
business. We have committed to serve customers with the best quality of brownies we
can make, so we bake our brownies daily to maintain its freshness of the ingredients.

We named our company as “Nona Manies” because we aspire to blend local flavor in
every recipes that we baked. Our company as well as our shop are located at
Medan,Indonesia.

We plan to expand our humble brownie company into large scale well-known bakery
countrywide while still maintaining our good quality of products and services.

II. Organization Chart

CEO

Finance Marketing Production Manufacturing

Administrative
Department Department Department Department
Department

Financial Marketing Public Product Bakers

Planning Stategy Relation Planning

Accounting Sales HRD Product Stock

Person Design

Finance Department consist of :

 Financial Planning : financial planner, also called a personal financial advisor, provides an
opportunity to work directly with clients and businesses to navigate personal finance's
foundational principles. Financial planners advise their clients on how to achieve their
financial objectives. Some financial planners provide comprehensive planning services
without offering recommendations, while others offer both planning and transactional
services.

 Accounting : Responsible for recording and reporting the cash flows, both in and out, of a
company, They also ought to prepare financial statements, maintaining the general ledger,
paying bills, payroll and more

Marketing Department consist of :

 Marketing Strategy : A marketing strategy is a business's overall game plan for reaching
people and turning them into customers of the product or service that the business provides.

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 The marketing strategy of a company contains the company’s value proposition, key
marketing messages, information on the target customer and other high-level elements.

 Sales Person :
An individual who sells goods and services to other entities. The successfulness of a
salesperson is usually measured by the amount of sales he or she is able to make during a
given period and how good that person is in persuading individuals to make a purchase. If a
salesperson is employed by a company, in some cases compensation can be decreased or
increased based on the amount of goods or services sold.

Production Department consist of :

 Product Planning : Product planning is the process of creating a product idea and following
through on it until the product is introduced to the market. Additionally, a small company
must have an exit strategy for its product in case the product does not sell. Product planning
entails managing the product throughout its life using various marketing strategies, including
product extensions or improvements, increased distribution, price changes and promotions.

 Product Design : Product design is the process of creating a new product to be sold by a
business to its customers. A very broad concept, it is essentially the efficient and effective
generation and development of ideas through a process that leads to new products.

Manufacturing Department consist of :

 Bakers : A person whose job is to make bread and cakes for sale

 Stock : The goods or merchandise kept on the premises of a business or warehouse and
available for sale or distribution.

III. Design of Factory

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 As we can see, hygiene is really crucial in this industry, so we make sure everyone
is clean enough before entering the production space

IV. Product Design

Right now we already have several variety of products :

Chocochips Brownies Oreo Brownies

Marshmallow Brownies Peanut Butter Brownies

Kit-kat Brownies

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V. Sales Forecast

Sales forecasting is the process of estimating future sales. Accurate sales

forecasts enable companies to make informed business decisions and predict short-
term and long-term performance.

Sales Forecast for the year 2019

Products Name Unit Price Sales Revenue

Chocochips Brownies IDR 40.000 2000 IDR 80.000.000

Oreo Brownies IDR 40.000 1000 IDR 40.000.000
Marshmallow Brownies IDR 45.000 1500 IDR 67.500.000
Peanut Butter Brownies IDR 50.000 1000 IDR 50.000.000
Kit-kat Brownies IDR 50.000 740 IDR 35.200.000
Total 6240 IDR 272.700.000

VI. Manufacturing Process

a. Materials
 Direct Materials :
NO MATERIALS SOURCE PRICE

1 Chocolate Bars Baking Supply Store IDR 50.000/1 Kg

2 Cake Flour Baking Supply Store IDR 11.000/1 Kg

3 Margarine Baking Supply Store IDR 32.000/1 Kg

4 Sugar Baking Supply Store IDR 11.000/1 Kg

5 Cocoa Powder Baking Supply Store IDR 42.000/180 gr

6 Eggs Supermarket IDR 45.000/pack

7 Instant Coffee Powder Baking Supply Store IDR 10.000/pack

8 Chocolate Chips Supermarket IDR 13.000/pack

9 Peanut Butter Supermarket IDR 45.000/pack

10 Oreo Supermarket IDR 10.000/pack

11 Marshmallow Supermarket IDR 30.000/pack

12 Kitkat Supermarket IDR 8.000/pack

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 13 Packaging Box Baking Supply Store IDR 15.000/pack

14 Packaging Stiker Grand Grafika IDR 15.000/sheet

 Indirect Materials :
NO MATERIALS SOURCE PRICE

1 Baking Pan Baking Supply Store IDR 15.000/box

2 Baking Sheets Baking Supply Store IDR 2.000/sheet

b. Labor

1 Production per batch 20 units

2 Direct labor hours per batch 2 hours
3 Direct labor cost per hour Rp.4.000
4 Indirect Labor hour per batch 3 hours
5 Indirect Labor cost per hour Rp. 6.000
6 Cost of Labor per batch Rp 26.000

Indirect Labor includes the Quality Control Advisor’s Salary, Utilities Engineer’s Salary

c. Factory Overhead

Variable factory overhead costs:

Indirect Materials Rp 30.000
Indirect Labor Rp 468.000
Depreciation expense-factory equipment Rp.200.000
Heat, light, and power Rp.2.000.000
Miscellaneous cost Rp.300.000
Rent-Expense Rp.800.000
Total factory overhead costs Rp 3.798.000

d. Production Process
Brownies making processes rely on three key steps:
 Mixing

 Baking

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  Cooling

e. Costing System
Because we’re in the food industry, we are using process costing systems. the cost of
units transferred out of each processing department must be determined along with the
cost of any partially completed units remaining in the department.

Nona Manies
Cost of Production Report - Manufacturing Department
For the Month Ended July 31, 2019

Whole Equivalent Units

UNITS Units Direct Conversion
Materials
Units charged to production:
Inventory in process, July 1 200
Received from Baking Department 350
Total units accounted for by the Mixing 550
Department

Units to be assigned costs:

Inventory in process, July 1 (25% completed) 200 0 150
Started and completed in May 320 320 320
Transferred to warehouse in May 520 320 470
Inventory in process, July 31 (50% completed) 300 300 150
Total units to be assigned costs 820 620 620

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 Costs
COSTS Direct Conversion Total
Materials
Costs per equivalent unit:
Total costs for July in Manufacturing IDR 6.300.000 IDR 4.006.000
Department
Total equivalent units 620 620
Cost per equivalent unit IDR 10.162 IDR 6.462

Costs assigned to production:

Inventory in process, July 1 IDR 200.000
Cost incurred in July IDR 10.306.000
Total costs accounted for by the Manufacturing IDR 10.506.000
Department

Cost allocated to completed and partially

completed units:
Inventory in process, July 1 - balance IDR 500.000
To complete inventory in process, July 1 IDR IDR IDR 969,300
- 969,300
Cost of completed July 1 work in process IDR 1,469,300
Started and completed in July IDR IDR IDR 5,307,520
3,251,840 2,055,680
Transferred to warehouse in July IDR 6,776,820
Inventory in process, July 31 IDR IDR IDR 4,012,500
3,048,600 963,900
Total costs assigned by the Manufacturing IDR 10,789,320
Department

VII. Product Pricing

a. We choose Total Cost Concept for pricing our products.
b. Pricing Calculation

Manufacturing costs :
Direct Materials 360.000
Direct Labor 20.000
Factory Overhead :
Variable costs 100.000
Fixed costs 100.000 200.000
Total manufacturing cost 480.000

Selling and administrative expenses :

Variable expenses 50.000
Fixed costs 30.000
Total selling and administrative expenses 80.000
Total cost 560.000

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 Desired rate of return 10%
Total assets 1.000.000

1. Total manufacturing cost Rp 480.000

2. Total selling and administrative expenses Rp 80.000
3. Total cost concept
480.000 + 80.000 = Rp 560.000/ 20 units = Rp 28.000.-
4. Markup percentage
Desired profit = 10% x 1.000.000
= Rp 100.000
Markup percentage = (100.000 : 480.000) x 100%
= 2,08%
5. Markup / unit
2,08% x 45.000 = Rp 936
6. Normal selling price
45.000 + 936 = Rp 45.936

VIII. Departmental Expense Allocation

a. Direct Expense
Salaries & Wages Rp. 2.500.000
Direct Materials Rp. 9.500.000
Heat,lighting, and power Rp. 2000.000

b. Indirect Expense
Rent Expense Rp. 800.000
Telephone Bills Rp. 500.000
Utilities Rp. 100.000
Advertising Rp. 200.000
Miscellaneous Cost Rp. 300.000

c. Allocation of Indirect Expenses

Expenses Allocation of Indirect Expenses to Departments

Account Finance Marketing Administrati Production Manufacturing
Ballance ve
Rent Expense Rp.800.000 Rp.80.000 Rp.80.000 Rp.80.000 Rp.160.000 Rp.400.000
Telephone Bills Rp.500.000 Rp.50.000 Rp.50.000 Rp.50.000 Rp.100.000 Rp.250.000
Utilities Rp.100.000 Rp.10.000 Rp.10.000 Rp.10.000 Rp.20.000 Rp.50.000
Advertising Rp.200.000 Rp.20.000 Rp.20.000 Rp.20.000 Rp.40.000 Rp.100.000
Miscellane-ous Rp.300.000 Rp.30.000 Rp.30.000 Rp.30.000 Rp.60.000 Rp.150.000
Cost
Total Rp.1.900.000 Rp.190.00 Rp.190.00 Rp.190.000 Rp.380.000 Rp.950.000

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Department 0 0
Expenses

d. Allocation of Service Department Expenses

Allocation of Service Department Expenses
Finance Marketing Administrati Production Manufacturin
ve g
Maintenance - - Rp.140.500 Rp.105.000 Rp.200.000
Security Rp.20.000 Rp.20.000 Rp.100.000 Rp.120.000 Rp.200.000

IX. Departmental Income Statement.

Total
Sales Rp 272.700.000
COGS (Rp 112.320.000)
Nona Manies
Department Income Statements
For Year Ended December 31,2019

Gross Profit Rp 160.380.000

Operating expenses :
Manufacturing cost Rp 5.760.000
Selling & administrative expenses Rp 960.000
Cost concept Rp 6.720.000
Rent expense Rp 24.000.000
Untilies expense Rp 1.200.000
Advertising expense Rp 2.400.000
Heat,lighting and power expense Rp 24.000.000
Share of Maintenance department Rp 5.346.000
expenses
Share of Security department expenses Rp 5.520.000
Total operating expenses (Rp 75.906.000)
Net Income Rp 84.474.000

X. Break –Even Point.

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Break-Even Point in Units = Fixed Costs : (Price of Product – Variable Costs Per Unit)
= Rp.500.000 : (Rp.46.000 – Rp.6000)
= 12,5 units

Break-Even point = Sales Price per Unit x Break-Even Point in Units

= Rp.46.000 x 12,5
=Rp.575.000

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