Submitted to:

Respected faculty
Mohammed Naveed Adnan Siddique
Student name :Abir Hasan Apurbo
ID : 1820493
Course Tittle :Cost Accounting 1
Course : ACN 405
Sec : 02

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Table of Contents
Detailed synopsis:........................................................................................................................................3
Income Statement of Mirpur Tribe Shop.....................................................................................................3
Cash Flow Statement of Mirpur Tribe Shop.................................................................................................4
Balance Sheet of Mirpur Tribe Shop............................................................................................................4
JOB costing..................................................................................................................................................7
Simple Costing System.................................................................................................................................8
Activity Based Costing (ABC) System...........................................................................................................9
Manufacturing Account of Mirpur Tribe Shop...........................................................................................10
Cash Budget of Mirpur Tribe Shop............................................................................................................11
Reference..................................................................................................................................................12

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Detailed synopsis:

Bangladesh is a densely populated country of south east Asia that has a rich tribal presence.
There are about 58 tribes living in different parts of the country. Bangladesh has 1.2 million
tribal people,which is just above 1 percent of the total population. Whatever the population they
differ in their social organizations, marital customs, rites and rituals, food and other customs
from the people of the rest of the country.I have an idea of a business that might be help tribal
people. Mirpur Tribe Shop is my own business and it’s a startup. It is situated in a prime location
which can able to capture more customers from target market. I invest all most 400000 taka on
its main product is bamboo bottle and bamboo glass which is maked by expert tribe people. In
2020 my business generates 4161000 tk as sales revenue with a total expense of 3661000. In
future I want to add more products in my shop.

Income Statement of Mirpur Tribe Shop

For Year Ended December 31, 2020

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 Account Name TK TK
Sales Revenue 4161000
Expenses:
Salaries 600000
Rent 400000
Bamboo cost 1200000
Utilities 300000
Advertisement 100000
Supplies 400000
Other expenses 661000
Total expenses (3661000)
Net income: 500000

Cash Flow Statement of Mirpur Tribe Shop

For Year Ended December 31, 2020

Account Name TK TK
Cash flow from operations:
Net Income 500000
Beginning cash balance 0
Net cash 500000
Investment:
Furniture 250000
Manufacturing machine 150000
Total Investment (400000)
Net cash flow 100000

Balance Sheet of Mirpur Tribe Shop

For Year Ended December 31, 2020

Asset TK Liability and owners’ equity TK

Current Asset: Liability 520000

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 Cash 500000 Owners’ Equity 600000
Account Receivable 80000
Inventory 100000
Pre-paid expense 40000
Fixed Asset
Furniture 250000
Machines 150000
Total asset 1120000 Total Liability 1120000

Startup Product

Bamboo bottle and Bamboo glass is the main product in my tribe shop. I also provide other small
product such bamboo plate,pen etc as per customers demand.

Revenue Calculation

We estimate that Mirpur Tribe Shop sell total 14600 unit of Bottle and 10950 units of Glass
yearly and per unit Bottle sold at 150 TK and Glass at 180 TK

Total revenue= (14600*150) + (10950*180)

= 4161000

Identifying variable and fixed costs of Mirpur Tribe Shop:

Variable Cost TK Fixed Cost TK

Bamboo Cost 500000 Salary 600000
Other material cost 80000 Rent 400000
Other variable cost 20000 Machines 150000
Furniture 250000
Advertisement 100000

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Information of calculating Job costing, Simple Costing and ABC costing:

Bottle Glass
Units sold 14600 10950
Selling Price per unit 150 180
Direct materials cost 700000 450000
Direct Materials cost per 48 41
unit
Direct labor cost 584000 584000
Production Run 70 times 80 times
Setup 150 times 150 times
Making (hour) 1560 1360

Activity costs:

Activity Cost Cost Driver

Production 150000 Production Run
Setup cost 40000 Machines setup
Making 80000 Production Hour
Total indirect cost 270000

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 JOB costing
Each Item consider as a job

Bottle Glass
Direct Martial 700000 450000
Direct Manufacturing Labor 584000 584000

Direct manufacturing labor rate per hour = 50 Taka

Manufacturing overhead cost allocated per manufacturing labor-hour = 45

Bottle Glass
Direct manufacturing labor costs 584000 584000
Direct manufacturing labor-hours 11680 11680
(584000/50;584000/50)
Manufacturing overhead cost allocated 525600 525600
(11680*45;11680*45)

Bottle Glass
Direct materials 700000 450000
Direct manufacturing labor 584000 584000
Manufacturing overhead allocated 525600 525600
Total costs 1809600 1559600

Simple Costing System

Yearly Bottle sell= (40*365) =14600

Yearly Glass sell= (30*365) =10950

Total production hour = (1560+1360) Hour

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 =2920 Hour

Indirect cost rate per machine-hour= (270000/2920)

= 92.47 TK per production hour

Simple Costing System Bottle Glass

Direct Materials 700000 450000
Direct Manufacturing Labor 584000 584000
Indirect Costs allocated to each 144253 125759
job
(92.47*1560;92.47*1360)
Total Costs 1428253 1159759
Per Unit Cost 98 105
(1428253/14600);
(1159759/10950)
Profit per unit 52 75
(150-98);(180-105)

Activity Based Costing (ABC) System

Activity Total Cost Driver Cost Allocation Rate
Cost of Driver
Activity Quantity
Production 150000 Production Run 150 1000
Setup cost 40000 Machines setup 300 133.33
Making 80000 Production Hour 2920 27.40

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 ABC system Bottle Glass
Direct Martial 700000 450000
Direct manufacturing labor 584000 584000
Indirect cost allocation:
Production 70000 80000
(1000*70);(1000*80)
Setup cost 20000 20000
(133.33*150);(133.33*150)
Making 42744 37264
(27.40*1560);(27.40*1360)
Total Cost 1416744 1171264
Per unit cost 97 107
(1416744/14600);
(1171264/10950)
Profit per unit 53 73
(150-97);(180-107)

Manufacturing Account of Mirpur Tribe Shop

For year ended December 31, 2020

Account Name TK TK
Direct Costs:
Direct materials 1150000
Direct manufacturing labor 1168000
Production 150000

Setup cost 40000

Making 80000

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 Total direct cost 2588000
Indirect Costs:
Labor cost 100000
Salaries 600000
Rent 400000
Supplies 400000
Advertisement 100000
Utilities 300000
Other expenses 661000
Total Indirect cost: 2561000
Total Manufacturing cost: 5149000

Cash Budget of Mirpur Tribe Shop

For year ended December 31, 2020

Accounts name 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total
Beginning Cash 1120000 873000 626000 397000 1120000
Balance
Cash Collection 1040250 1040250 1040250 1040250 4161000
Available Cash 2160250 1913250 1666250 1437250 7177000
(-)Cash
Disbursement :
Direct materials 287500 287500 287500 287500 1150000
Direct labor 292000 292000 292000 292000 1168000
Production 37500 37500 37500 37500 150000

Setup cost 10000 10000 10000 10000 40000

Making 20000 20000 20000 20000 80000

Indirect cost 640250 640250 640250 640250 2561000
Total Cash (1287250) (1287250) (1287250) (1287250) (5149000)
Disbursement

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 Ending Cash 873000 626000 379000 150000 150000
Balance

Reference
 Horngrens Cost Accounting A Managerial Emphasis 16th Edition
 Managerial Accounting For Managers 2nd Edition

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