Harga Pokok Produk Bersama Dan Produk Sampingan PERTEMUAN XIV Dr Rilla Gantino, SE., AK., MM Prodi Akuntansi -FEB

  Harga Pokok Produk Bersama Dan Produk Sampingan PERTEMUAN XIV Dr Rilla Gantino, SE., AK., MM Prodi Akuntansi -FEB Mahasiswa dapat menghitung dan menginterpretasikan harga pokok produk bersama dan perlakuan akuntansi terhadap produk bersama Mahasiswa dapat menghitung dan menginterpretasikan harga pokok produk sampingan, perlakuan akuntansi terhadap dan produk sampingan .

  Learning Objective 1 Learning Objective 1 Identify the split-off point(s) in a joint-cost situation.

  

Joint-Cost Basics (E.g. 1)

Joint-Cost Basics (E.g. 1)

  Raw milk Cream Liquid Skim

  Joint costs are costs Incurred in producing the raw milk

  Separable costs are costs incurred in producing these separately identifiable products

  Split-off point

Joint-Cost Basics (E.g. 2)

  Joint-Cost Basics (E.g. 2)

  Coal Gas Benzyl Tar

  Learning Objective 2 Learning Objective 2 Distinguish joint products from byproducts.

Joint Products and Byproducts

  Joint Products and Byproducts

  Sales Value High Low Main Product = 1 Joint Products ≥ 2 Byproducts

  Learning Objective 3 Learning Objective 3 Explain why joint costs should be allocated to discrete products.

Why Allocate Joint Costs?

  Why Allocate Joint Costs?

  • to compute inventory cost and cost of goods sold
  • to determine cost reimbursement under contracts
  • for insurance settlement computations
  • for rate regulation
  • for litigation purposes

  Learning Objective 4 Learning Objective 4 Allocate joint costs using four different methods.

Joint Costs

  Joint Costs

  Approach 2: Physical measure

  Approach 1: Market based

  Two (2) basic ways to allocate joint costs to products are:

  

Approach 1: Market-based Data

  

Approach 1: Market-based Data

  • 3 methods

  • 3 methods

  (1) - Sales value at split-off method (2) - Estimated net realizable value (NRV) method

  (3) - Constant gross-margin percentage NRV method

  (1) Sales Value at Split-off (1) Sales Value at Split-off

  Method Example

Method Example

  10,000 units of A at a selling price of $10 = $100,000 Joint processing cost is $200,000

  10,500 units of B at a selling price of $30 = $315,000 11,500 units of C at a

  Splitoff point selling price of $20 = $230,00

  

(1) Sales Value at Split-off

(1) Sales Value at Split-off

  

Method Example

Method Example

  A B C Total

Sales Value $100,000 $315,000 $230,000 $645,000

Allocation of Joint Cost 100 ÷ 645 31,008 315 ÷ 645

  97,674 230 ÷ 645 71,318 200,000

  

Gross margin $ 68,992 $217,326 $158,682 $445,000

  Method Example Method Example

  Assume all of the units produced of B and C were sold.

  2,500 units of A (25%) remain in inventory.

  What is the gross margin of product A ? What is the gross margin percentage of each product?

  Method Example Method Example

  Product A Revenues: 7,500 units × $10.00 $75,000 Cost of goods sold:

  Joint product costs $31,008

  Less ending inventory

  $31,008 × 25% 7,752 23,256 Gross margin

  $51,744

Method Example

  Method Example

  Product A: ($75,000 – $ 23,256) ÷ $75,000 = 69%

  Product B: ($315,000 – $97,674) ÷ $315,000 = 69%

  Product C: ($230,000 – $71,318) ÷ $230,000 = 69%

  (NRV) Method Example (NRV) Method Example

  Assume that Oklahoma Company can process products A, B, and, C further into A1, B1, and C1.

  The new sales values after further processing are: A1:

  10,000 × $12.00 = $120,000

  B1: 10,500 × $33.00

  = $346,500 C1:

  11,500 × $21.00 = $241,500

  (NRV) Method Example (NRV) Method Example

  Additional processing (separable) costs are as follows: A1: $35,000

  B1: $46,500 C1: $51,500 What is the estimated net realizable value of each product at the splitoff point?

  (NRV) Method Example (NRV) Method Example

  Product A1: $120,000 – $35,000 = $85,000 Product B1: $346,500 – $46,500 = $300,000 Product C1: $241,500 – $51,500 = $190,000

  How much of the joint cost is allocated to each product?

  (NRV) Method Example (NRV) Method Example

  To A1: 85 ÷ 575 × $200,000 = $29,565 To B1: 300 ÷ 575 × $200,000 = $104,348 To C1: 190 ÷ 575 × $200,000 = $66,087

  (NRV) Method Example (NRV) Method Example

  Allocated Separable Inventory joint costs costs costs A1 $ 29,565 $ 35,000 $ 64,565 B1 104,348 46,500 150,848 C1 66,087 51,500 117,587 Total $200,000 $133,000 $333,000 Percentage NRV Method Percentage NRV Method

  Step 1: Compute the overall gross-margin percentage.

  Step 2:

  Use the overall gross-margin percentage and deduct the gross margin from the final sales values to obtain the total costs that each product should bear.

  Percentage NRV Method Percentage NRV Method

  Step 3:

  Deduct the expected separable costs from the total costs to obtain the joint-cost allocation.

  Percentage NRV Method Percentage NRV Method

  What is the expected final sales value of total

  production during the accounting period?

  Product A1: $120,000 Product B1: 346,500 Product C1: 241,500 Total

  $708,000 Percentage NRV Method Percentage NRV Method

  Step 1: Compute the overall gross-margin percentage.

  Expected final sales value $708,000 Deduct joint and separable costs 333,000 Gross margin

  $375,000 Gross margin percentage:

  $375,000 ÷ $708,000 = 52.966% Percentage NRV Method

Percentage NRV Method Deduct the gross margin

  Sales Gross Cost of Value Margin Goods sold

  Product A1: $120,000 $ 63,559 $ 56,441 Product B1: 346,500 183,527 162,973 Product C1: 241,500 127,913 113,587 Total $708,000 $375,000 $333,000

  ($1 rounding)

  Percentage NRV Method

Percentage NRV Method Deduct separable costs

  Cost of Separable Joint costs goods sold costs allocated Product A1: $ 56,441 $ 35,000 $ 21,441 Product B1: 162,973 46,500 116,473 Product C1: 113,587 51,500 62,087 Total $333,000 $133,000 $200,000

Measure Method Example

  Measure Method Example

  $200,000 joint cost 20,000 pounds A

  48,000 pounds B 12,000 pounds C

  Product A $50,000

  Product B $120,000

  Product C $30,000

  Learning Objective 5 Learning Objective 5 Explain why the sales value at splitoff method is preferred when allocating joint costs.

  

Choosing a Method

Choosing a Method

  

Why is the sales value at split-off method widely used?

  It measures the value of the joint product immediately.

  It does not anticipate subsequent management decisions.

  It uses a meaningful basis.

  It is simple.

Choosing a Method

  Choosing a Method

  The physical-measure method is a more appropriate method to use in rate regulation. The NRV method should be used when there is not enough information about individual selling prices at split-off point.

Avoiding Joint Cost Allocation

  Avoiding Joint Cost Allocation

  Some companies refrain from allocating joint costs and instead carry their inventories at estimated net realizable value.

  Learning Objective 6 Learning Objective 6 Explain why joint costs are irrelevant in a sell-or-process-further decision. for Decision Making for Decision Making

  at the splitoff point or processed further into A1, B1, and C1.

  Selling Selling Additional Units price price costs 10,000

  A: $10 A1: $12 $35,000 10,500

  B: $30 B1: $33 $26,500 11,500

  C: $20 C1: $21 $51,500 point or processed further? Product A: Incremental revenue $20,000

  for Decision Making for Decision Making

  • – Incremental cost $35,000 = ($15,000) Product B: Incremental revenue $31,500
  • – Incremental cost $26,500 = $5,000 Product C: Incremental revenue $11,500
  • – Incremental cost $51,500 = ($40,000)
point or processed further? Product A: Incremental revenue $20,000

  Split-off Processed further Split-off

  for Decision Making for Decision Making

  • – Incremental cost $35,000 = ($15,000) Product B: Incremental revenue $31,500
  • – Incremental cost $26,500 = $5,000 Product C: Incremental revenue $11,500
  • – Incremental cost $51,500 = ($40,000)

  Learning Objective 7 Learning Objective 7 Account for byproducts using two different methods. Accounting for Byproducts Accounting for Byproducts

  Method A:

  The production method recognizes byproducts at the time their production is completed.

  (Conceptually, this is the correct method) Method B:

  The sale method delays recognition of byproducts until the time of their sale.

  (used when dollar amount of byproducts are immaterial)

  Example

Example

  Main Products Byproducts (Yards) (Yards)

  Production 1,000 400 Sales

  800 300 Ending inventory 200 100 Sales price $13/yard $1.00/yard No beginning finished goods inventory Example Example

  Joint production costs for joint

  (main) products and byproducts: Material

  $2,000 Manufacturing labor 3,000 Manufacturing overhead 4,000 Total production cost $9,000 Method A Method A

  Method A: The production method

  What is the value of ending inventory of joint (main) products? $9,000 total production cost

  • – $400 net realizable value of the byproduct = $8,600 net production cost for the joint products

Method A

  Method A

  200 ÷ 1,000 × $8,600 = $1,720 is the value assigned to the 200 yards in ending inventory.

  What is the cost of goods sold? Joint production costs

  $9,000 Less byproduct revenue

  400 Less main product inventory 1,720 Cost of goods sold

  $6,880 Method A

Method A

  Income Statement (Method A) Revenues: (800 yards × $13) $10,400 Cost of goods sold 6,880 Gross margin

  $ 3,520 What is the gross margin percentage?

  $3,520 ÷ $10,400 = 33.85%

Method A

  Method A

  What are the inventoriable costs? Main product: 200 ÷ 1,000 × $8,600 = $1,720

  Byproduct: 100 × $1.00 = $100 Journal Entries Method A

Journal Entries Method A

  Work in Process 2,000 Accounts Payable

  2,000 To record direct materials purchased and used in production Work in Process 7,000

  Various Accounts 7,000

  To record conversion costs in the joint process

  Journal Entries Method A

Journal Entries Method A

  Byproduct Inventory 400 Finished Goods 8,600

  Work in Process 9,000

  To record cost of goods completed Cost of Goods Sold 6,880

  Finished Goods 6,880

  To record the cost of the main product sold

  Journal Entries Method A

Journal Entries Method A

  Cash or Accounts Receivable 10,400 Revenues

  10,400 To record the sale of the main product

Method B

  Method B

  What is the value of ending inventory of joint (main) products? 200 ÷ 1,000 × $9,000 = $1,800

  No value is assigned to the 400 yards of byproducts at the time of production.

  The $300 resulting from the sale of byproducts is reported as revenues.

Method B

  Method B

  Income Statement (Method B) Revenues: Main product (800 × $13) $10,400 Byproducts sold

  300 Total revenues

  $10,700 Cost of goods sold:

  Joint production costs 9,000 Less main product inventory 1,800 $ 7,200

  Gross margin $ 3,200

  Method B

Method B

  What is the gross margin percentage? $3,200 ÷ $10,700 = 29.91%

  What are the inventoriable costs? Main product: 200 ÷ 1,000 × $9,000 = $1,800

  By-product: -0- Journal Entries Method B

Journal Entries Method B

  Work in Process 2,000 Accounts Payable

  2,000 To record direct materials purchased and used in production Work in Process 7,000

  Various Accounts 7,000

  To record conversion costs in the joint process

  Journal Entries Method B

Journal Entries Method B

  Finished Goods 9,000 Work in Process

  9,000 To record cost of goods completed Cost of Goods Sold 7,200

  Finished Goods 7,200

  To record the cost of the main product sold

  Journal Entries Method B

Journal Entries Method B

  Cash or Accounts Receivable 10,400 Revenues

  10,400 To record the sale of the main product Cash or Accounts Receivable 300

  Revenues 300

  To record the sale of the byproduct