COSTOS

WORKSHOP: COSTS
TEACHER: FELIX RODRIGUEZ
STUDENT: JOSE FABIAN JARA LARA

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 GENERAL INSTRUCTIONS

Once the comprehensive reading of the units of the study material has been completed, it is essential
to carry out this workshop, the objective of which is to measure the correct internalization and
application of the concepts addressed in the aforementioned unit:
● Manages the control of cost elements: materials, labor and manufacturing expenses.
● ● Applies charts of accounts and postings.
● Manages predetermined costs

The development of this work is individual; workshop deliveries in pairs or groups will
not be allowed.

Specific instructions

Exercise Nº1:

The manufacturing company Los Claveles S.A. maintains the following information relevant to
its sales and related costs.

 Total fixed costs $1.500.000

 Variable cost (production and administration) $ 5.000
 Unit selling price $ 13.000

Required: break-even point contribution margin

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 1. Determine the break-even point in units sold to obtain an expected profit of $5,000,000.

5.000.000+1.500.000=6.500.000 =812.5 1.500.000 = 1846

13,000- 5,000 8,000 812.5 (approximates 813)

Product Sales price Variable cost margin

Carnations $ 13.000 $ 5.000 1.500.000

production sale Variable cost margin

813 $10.569.000 $ 4.065.000 $ 6.504.000
$10.569.000 $ 4.065.000 $ 6.504.000

In order to have a profit of $ 5,000,000, 813 units must be sold.

1. Determine break-even point in units sold

Break-even point
1.500.000 = 1.500.000 = 187.5 1.500.000 = 8.000
13,000-5,000 8,000 187.5 (approximating 188)

product Sales price Accounting cost margin

Carnations $ 13.000 $ 5.000 $ 1.500.000

Production For sale Accounting cost margin

188 $ 2.444.000 $ 940.000 $1.504.000
$ 2.444.000 $ 940.000 $1.504.000

To obtain the break-even point, 188 units must be sold.

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Exercise Nº2:

Center S.A. has the following information on costs incurred in its production process.

 Direct materials 1.000.000

 Indirect materials 20% of direct materials
 Direct labor $2.500.000
 Indirect labor 15% direct labor
 Other indirect manufacturing costs $200.000

Total Direct indirect

Raw Materials 1.200.000 1.000.000 200.000
Labor 2.875.000 2.500.000 375.000
VAT ID 200.000 200.000
Totals 4.275.000 3.500.000 775.000
Administrative
expenses

Requested:

1. Determine prime costs $ 3.500.000

2. Determine conversion costs $ 3.275.000
3. Determine total manufacturing costs $ 4.275.000

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Exercise Nº3:

Delphos S.A. presents the following information on its manufacturing and product transfer
process, and requires you to estimate costs and account for them,

 Development

ESTIMATED COST CARD D1 D2

MATERIALS 13 5

LABOR 11 6

MANUFACTURING OVERHEAD 12 9

36 20 56

ROYAL PRESERVES OF THE PERIOD

MATERIALS 12.800 7.200
LABOR 9.200 4.200
MANUFACTURING OVERHEAD 15.000 4.850

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 D1 D2
COMPLETED UNITS 850 499
UNITS TRANSFERRED 801 205
UNITS IN PROCESS 405 70

DEGREE OF COMPLETION D1 D2
MATERIALS 100% 100%
LABOR 80% 70%
MANUFACTURING OVERHEAD 50% 50%

DETAIL MUST HAVE

MATERIALS D1 12.800
MO D1 9.200
GIF D1 15.000
WINERY 12.800
REMUNERATIONS 9.200
MANUFACTURING 15.000
OVERHEAD
FINISHED PRODUCTS 30600
MATERIALS D1 11.050 850*13
MO D1 9350 850*11
GIF D1 10.200 850*12
D2 TRANSFERS 28836
PRO. FINISHED D1 28836 801*36
D2 Materials 7200
MO D2 4200
GIF D2 4850
Winery 7200
4200
Remunerations
4850
Manufacturing
Expense
Finished products D2 27944
D2 Materials 2495 499*5
2994 499*6
MO D2
4491 499*9
GIF D2 499*36
17964
Transfer D2
Finished products 11480 205*56
Finished products D2 11480
Box 31454
Sales 26432 66.08
VAT DF 5022
Cost of sales 22400
P. Finished 28000 56

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  General Ledger

Materials D1 D2 Materials
1 7.20
2.800 11.050 0 2.495
Balance 4.70
1.750 5
Labor D1 Labor D2
4.20
9.200 9.350 0 2.994
1.20
-150 6
GIF D1 GIF D2
4.85
15.000 10.200 0 4.491
35
4.800 9

 Variation table

Accounts Major Units in process Variation Type

Balance Variation
Materials D1 405 13 100% 5265 - favorable
1.750 3.515
Labor D1 405 11 80% 3564 - Favorable
-150 3.714
GIF D1 405 12 50% 2430 2. Unfavorable
4.800 370
D2 Materials 70 5 100% 350 4. Unfavorable
4.705 355
Labor D2 70 6 70% 294 unfavorable
1.206 912
GIF D2 70 9 50% 315 Unfavorable
359 44

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  DETAILS OF VARIATIONS

DETAIL You see

must
ADJUSTMENTS AND VARIATIONS 7.681

GIF D1 2.370
MATERIALS D2 4.355
LABOR D2 912
GIF D2 44

MATERIALS D1 3.515
LABOR D1 3.714

ADJUSTMENTS CHANGES 7.229

SALES REVENUE 26.432

COST OF SALE -22.400
MARGIN 4.032

FAVORABLE VARIATIONS 3.515

MATERIALS D1 3.714 7.229
LABOR D1

UNFAVORABLE VARIATIONS
GIF D1 2.370
MATERIALS D2 4.335
LABOR D2 912
GIF D2 44 7.681

RESULT 3.580

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Requested:
 Post transfer and sale transactions in the daily book

Evaluation Criteria Score

ITEM I 14
Break-even point for expected profit 7

Break-even point in units sold 7

ITEM II 30

Prime costing 10

Determination of conversion costs 10

Determination of total manufacturing costs 10

ITEM III 48

Determination of accounting entry by process debit actual value 6

Determination of accounting entry for finished products 6

Determination of accounting entry by transfer D2 6

Determination of accounting entry for process charges actual value 6

Determination of accounting entry for finished processes at estimated value 6

Determination of accounting entry for transfer to warehouse 6

Determination of accounting entry by cost of units sold 6

Determination of accounting entry for sale of units 6

OTHER 8

Orderly accounting of costs and presentation of income statements 4

Rigorous and accurate calculations 4

100
Total Score
DELIVERY FORMALITIES
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 Spacing: 1.15
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 Format: Submit in Word or Excel file, with the following name: YourFirstName_YourLastName
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 the
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This activity will be evaluated by the professor of the course, so it is

suggested, for its realization, to consider the Evaluation Criteria
detailed at the end of this document.

The total score for this workshop is 100 points, and the minimum
passing score is 60 points.



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