Assignments

Problem 1: A certain factory produces 5 kinds of item such as men shirt (A); lady shirt (B); men
trouser (C); lady trouser (D) and children short (E). Now, the total operational cost to produce all items
is 179,865,000 VNĐ. The weighted factor and total volume for each item are summarized as follow:
Item A (weighted factor 1,07): 2.000 units.
Item B (weighted factor 1,10): 2.000 units.
Item C (weighted factor 1,15): 1.500 units.
Item D (weighted factor 1,20): 1.250 units.
Item E (weighted factor 1,00): 1.000 units.
Remark: weighted factors use to transfer a certain item to standard item.
1. Total standard items (equivalent items) (A, B, C, D, and E) (5 points): V =

2. Unit price for each standard item (2 points): p =

3. Selling price for each item (5 points): Item A =

Item B =

Item C =

Item D =

Item E =

Problem 2: A certain factory produces 4 kinds of product such as A, B, C, and D; and planning price
and total volume for each kind of item is summarized in below table:

Item Planning price Volume

A 10.000 VNĐ 2.200 units
B 12.000 VNĐ 2.150 units
C 15.000 VNĐ 3.000 units
D 17.000 VNĐ 2.520 units
The total operational cost to produce all items is 130,214,400 VNĐ.
1. Total cost based on planing price (A, B, C, and D) (6 points): CT =

2. The ratio (2 points): R (%) =

3. Selling price for each item (4 points): Item A =

Item B =

Item C =

Item D =

Manufacturing system
Problem 3: An Binh company, in 1/2016 the actual 26.622 kg of raw material 1 (main material) are sent to factory, at the
end of 1/2016, the production report is as follows:
 Item A: including 1,500 units and 600 units of WIP (with completion rate is 40%)
 Item B: including only 1,200 units (none of WIP)
 Item C: including only 3,000 units (none of WIP)
 Item D: including only 900 units (none of WIP)
The using standard for each unit is summarized as follow:
 Item A: 5,0 Kg
 Item B: 4,5 Kg
 Item C: 2,5 Kg
 Item D: 3,0 Kg
To complete all items above (A, B, C, and D) this factory also uses other material (material 2), and total cost for this
material is 5,481,000 VNĐ, and this total cost is allocated to 4 kinds of item based on material 1. The unit price of material
1 is 2,100 VNĐ.
Additionally, in 1/2016, with item A, the report from accounting department such as:
 Labour cost is: 9,570,000 VNĐ
 Overhead cost is: 2,610,000 VNĐ
Requests:
a. According to material 1 ratio, allocate total cost (material 1 and 2) in 1/2016 to all items A, B, C, and D (with item A,
allocate 100% value of material 1 and 2 to WIP) (8 points)
b. Determine value of WIPs, items and unit price for item A in 1/2016 (7 points)
c. Suppose that the waste ratio of material 1 for all items are the same, determine this waste ratio in 1/2016 (3 points)

Problem 4: A certain factory has one production line which includes 4-stage process. And processing
cost for each stage is as follow: K1, K2, K3, K4. And the processing cost increases 500 VNĐ for next
stage i.e. K2 = K1 + 500; K3 = K2 + 500; K4 = K3 + 500.

In operations period of 10/2016, the report form factory manager is summarized such as: none final
items, number of WIP at each stage: 110 units, 160 units, 210 units, 280 units respectively. The unit
cost for material is 4,500 VNĐ. In 10/2016, the total oerpational cost is 11,471,000 VNĐ.

a. Determine operational cost at each stage K1, K2, K3, K4 (7points)

b. The planning cost for stage 1 (K1) is 5100 VNĐ, and next stage increases 500 VNĐ comparing
with previous stage. Determine the total planning cost?; percentage of difference between actual
and planning? Expain this difference? (5 points)

Manufacturing system
In 1/2015, the cost is as follows:
Materials cost: 1,600,000 Đ
Labor cost: 400,000 VNĐ
Overhead cost: 200,000 VNĐ
At the end of period, the total output 1,200 items and 400 WIP with percentage of completion is 50%.

In 2/2015, this factory has the actual operational cost of 11,245,000 VNĐ, includes:
Materials cost: 7,000,000Đ
Labor cost: 2,915,000 VNĐ
Overhead cost:1,330,000 VNĐ
At the end of 2/2015 the output report includes 1,500 items and 500 WIP with completion rate 40%.

1. Computing the value of WIP and selling price for 2/2015.

2. Comparing the selling price between 1 and 2/2015.

Manufacturing system