Grades
Faces
Selling Price feet $ $
88.00
25.00 9,000 20.00 180.00 18.52% 81.48
1/24 inch veneer in feet sales revenue per 1,00 feet Net Value Percent of total Cost Applicable to each per 1000
$
9,000 88.00 792.00 81.48% 358.52
Materials cost per thousand feet
$
39.84
Labor and FOH Selling cost (ave.)
$ $
Standard (Absorption Costing) per 1000 sqft Selling price Direct Materials Labor & FO FOH Op Operating cost ( clipping, la lath, he hea $ other costs ( recliping, drying) Selling cost Total Cost Gross Profit Variable Costing per 1000 sqft Selling price Direct Materials FOH Operating cost ( clipping, lath, heating) other costs ( recliping, drying) Cost of Goods Manufactured Selling cost Gross Margin
Backs
9.05
88 12.22 10.125 2 24.35 63.66
20 12 12.22 10.125 3.75 2 28.10 (8.10)
88 39.84 16.5
20 9.05 3.75 3.75 16.55 0.74 2. 2.71
56.34 3.26 28.41
1. It is better to value materials cost using variable costing. Variable cos
Total
18,000 - per 1,000 boardfeet cut; can process up to 12,000 brdft in 8 hours shift 108 972 1 440
24 4
24.44 - graded 50-50 20.25 - joint cost; i will divide them to 50-50 based on feet produced - done on back separately although on the same machine
20.25
- since i dont have measurement of backs per 1000 sqft, il make use of value
ing shows a more accurate cost of materials used on the product.
a. Change in price of backs Grades
Faces
Selling Price feet $ $
88.00
22.00 9,000 20.00 180.00 18.5% 83.33
1/24 inch veneer in feet sales revenue per 1,00 feet Net Value Percent of total Cost Applicable to each per 1000
$
9,000 88.00 792.00 81.5% 366.67
Materials cost per thousand feet
$
40.74
Labor and FOH Selling cost (ave.)
$ $
Standard (Absorption Costing) per 1000 sqft Selling price Direct Materials Labor & FOH Operating cost ( clipping, lath, hea $ other costs ( recliping, drying) Selling cost Total Cost Gross Profit Variable Costing per 1000 sqft Selling price Direct Materials FOH Operating cost ( clipping, lath, heating) other costs ( recliping, drying) Cost of Goods Manufactured Selling cost Gross Margin
1/24 inch veneer in feet sales revenue per 1,00 feet Net Value Percent of total Cost Applicable to each per 1000
22 12.22 10.125 3.75 2 28.10 (6.10)
88 40.74 16.5
22 9.26 3.75 3.75 16.76 0.74 4.50
Faces
Selling Price feet $ $ $
9.26
88 12.22 10.125 2 24.35 63.66
57.24 3.26 27.50
b. Change in production of backs Grades
Backs
Backs
88.00
20.00
10,000 88.00 792.00 81.48% 366.67
8,000 20.00 180.00 18.52% 83.33
Materials cost per thousand feet
$
Labor and FOH Selling cost (ave.)
$ $
Standard (Absorption Costing) per 1000 sqft Selling price Direct Materials Labor & FOH Operating cost ( clipping, lath, hea $ other costs ( recliping, drying) Selling cost Total Cost Gross Profit Variable Costing per 1000 sqft Selling price Direct Materials FOH Operating cost ( clipping, lath, heating) other costs ( recliping, drying) Cost of Goods Manufactured Selling cost Gross Margin
c. Backs treated as waste (@ 440) Selling price Raw Materials Less: Wastage selling price - cost incurred after split off Labor and Factory overhead Selling cost savings from backs total cost of good manufactured Gross Margin c. Backs treated as waste (@ 450, selling @ 22) Selling price Raw Materials Less: Wastage selling price - cost incurred after split off Labor and Factory overhead Selling cost savings from backs total cost of good manufactured Gross Margin
36.67
10.42
88 12.22 10.125 2 24.35 63.66
20 12.22 10.125 3.75 2 28.10 (8.10)
88 36.67 16.5
20 10.42 3.75 3.75 17.92 0.74 1.34
53.17 3.26 31.57
24.00 20.00 3.75
16.25
25.00 22.00 3.75
18.25
Total
18,000 - per 1,000 boardfeet cut; can process up to 12,000 brdft in 8 hours shift 108 972 100% 450
24 4
24.44 - graded 50-50 20.25 - joint cost; i will divide them to 50-50 based on feet produced - done on back separately although on the same machine
20.25
- since i dont have measurement of backs per 1000 sqft, il make use of value
Total
18,000 108 972 1 450
24 4
24.44 20.25
20.25
88.00
7.75 24.00 4.00 5.00 40.75 47.25
88.00
6.75 24.00 4.00 5.00 39.75 48.25
