17.

3 according to byproduct
* accounting methods (slide 26)
production method
sales method
* Example (slide 27+28)

sales value of 1 cubic feet of wood chip

selling price/board
units sold

Production method
Total value of byproduct 1*4,000
sales revenue of byproduct 1*1200
closing value of byproduct 4000-2000
income statement
Sales revenue of main product 6*40,000
Less: COS
(250,000 - tổng giá trị sp phụ 4,000)/50,000*40,000
Gross profit 240k-196,800
balance sheet
Inventory
Main product (250k-4k)/50k*10k
Byproduct 4k/4k*(4000-1,200)

Sales method giá trị hàng tồn kho cuối kỳ = 0

Sales rev of main product 6*40k
Sales rev of byproduct 1*1,200

Less COS 250k/50k*40k

Gross profit

balance sheet
Inventory
Main product 250k/50k*10k
Byproduct

CHAPTER 19: SPOILIAGE

19.1 some definition and acc methods for spoilage
*some definition (slide 4+5)
sản phẩm hỏng (spoilage) là gì
rework sửa chữa lại
scrap phế phẩm
normal spoilage sản phẩm hỏng bình thường
abnormal spoilage sản phẩm hỏng không bình thường

*accouting for spoilage

For normal spoilage: cost of normal spoilage is added to good units (có thể tính vào sản phẩm tốt)
For abnormal spoilage: cost of abnormal spoilage is treated as loss from spoilage (tính vào thiệt hại của sản phẩm hỏng)

19.2 Measurement of cost for normal and abnormal spoilage

equivalent unit khối lượng hoàn thành tương đương
ví dụ cooking rice

example

production cost sheet

beginning WIP
units started
units to account for
units completed
spoilage units
ending WIP
units accounted for

cost of beginning WIP

cost occurred during period
total costs to account for
cost per EU (equivalent unit)
(85800/66000; 62100/62000)

Costs assigned to
completed units

cost of good units before added cost of normal spoilage

(giá sp tốt trước khi cộng vào giá sp hỏng bình thường)
add cost of normal spoilage
total cost of good units
End WIP
Total cost accounted for

làm bài nộp teams

Q2
production cost sheet

beginning WIP
units started
units to account for
units completed
spoilage units
ending WIP (60% complete)
total units accounted for

cost of beginning WIP

cost incurred during period
total costs to account for
cost per EU

cost assigned to completed units

cost of good units before spoilage
add: cost of normal spoilage
total cost of good units
end WIP
total cost accounted for
###
If FIFO method is adopted

beginning WIP
units started
units to account for
beginning WIP
units started ans completed during month (55k-22k)
normal spoilage
end WIP
units accounted for

beginning WIP
manufacturing costs incurred during month
costs to account for

cost per EU (equivalent units)

(70,800/44k; 56,100/51k)

costs assigned to
units completed and transferred
beginning WIP
costs added to beginning WIP

units started and completed during the month

normal spoilage
cost of units completed and transferred
ending WIP
costs accounted for

For Abnormal Spoilage sản phẩm hỏng ngoài định mức cho phép
không được cộng vào giá thành của sản phẩm tốt (not added to cost of good units)
recognized as loss from abnormal spoilage

exercise 19-21
ví dụ nó ko cho sẵn normal và abnormal
good units
total spoilage units
T% normal spoilage

>>> normal spoilage units: 1/90*9,000

>>> abnormal spoilage: 150-100

beginning WIP
started in Nov 2020
dau vao units to account for
good units completed and transferred out
normal spoilage
 abnormal spoilage
ending WIP
dau ra units accounted for

beginning WIP
costs added in Nov
dau vao total cost to account for

cost per EU
(13,603/11,150; 28,860/9,750)
costs assigned to
good units completed and transferred
cost of good units before added normal spoilage
added: cost of normal spoilage
total cost of good units completed and transferred
total cost of abnormal spoilage
ending WIP
dau ra total cost accounted for

bài tập teams: Q2 theo phương pháp FIFO

If FIFO method is adopted

beginning WIP
units started
units to account for
beginning WIP completed
units started and completed during the month
normal spoilage
ending WIP
units accounted for

beginning WIP
manufacturing costs incurred during month
total costs to account for

cost per EU

costs assigned to
beginning WIP
 costs added to beginning WIP
units started and completed
3/4/2025

CHAPTER 12: relevant information and decision makin

12.1 relevant information
* what is relevant information thông tin tích hợp
incurrs in the future: past event (sunk cost)
must be different among options

* classification of relevant information

financial information: investment, revenue, cost, expenses…
non financial information
expressed in numbers: 30%
other: sự phàn nàn của khách, đạo đức đối xử với người lao động, khả năng ô nhiễm môi trường….

12.2 decision making

a/ with limited factors: quyết định liên quan đến nhân tố giới hạn
* what is limited factor?
* general principle for this decision
net profit = revenue - expenses
= revenue - variable costs - fixed costs
= contribution margin - fixed costs
in short run:
fixed cost: constant
net profit => to maximize => to maximize contribution margin (CM)

* case 1: if only limited factor nếu chỉ có 1 nhân tố giới hạn

A firm's two products are both produced on a single machine.

Product 1 requires 2 hours of machine time per unit of product while
Product 2 requires 4 hours per unit. There is a maximum of 20 000 hours of
machine time available per time period. Product 1 has a contribution
Q3 margin of $4 per unit, Product 2 a margin of $5 per unit.

to determine contribution margin/one of limited factor unit

to determine rank of production
answer:

contribution margin units ($/unit)

machine hours per unit
contribution margin per machine hour (4/2; 5/4)
ranking

if product 1 is produced => total CM1 = 4*20000/2

tính theo số giờ máy chạy = 2*20,000

if product 2 is produced => total CM2 = 5*20,000/4

tính theo số giờ máy chạy = 1.25*20,000

difference: (2 - 1.25)*20,000

*case 2: if more than 2 limited factors (nếu có 2 nhân tố giới hạn trở lên) without demand

A company makes two products, X and Y. there is no upper limit to the sales
demand, but there is a limit of 30,000 DLH and 33,000 kg DM.
Product X uses 15 DLH and 10 kg DM. Product Y uses 8 DLH and 12 kg DM.
Product X's contribution is $5 per unit, and Product Y's contribution is $4
Q4 per unit. What is the production plan for maximum contribution?

answer:

contribution margin units ($/unit)

direct labor hour per unit
contribution margin per DLH (5/15; 4/8)
ranking
direct material per unit
contribution margin per kg of DM (5/10; 4/12)
ranking

>>> linear program!!!

step 1: set up objective function
assume: X is number of product X produced to maximize CM
Y ……………………………….Y…………………………………. CM
5X + 4Y =>>>>>>>>>>>>>>>>>>> max

step 2: set up constraint (limited factors)

15X + 8Y < = 30,000 (1)
10X + 12Y < = 33,000 (2)
X, Y > = 0 (3)

step 3: solving equation

draw graph

from (1) if X = 0 =>>> Y = 30,000/8 =

 if Y = 0 =>>> X = 30,000/15 =
from (2) if X = 0 =>>> Y = 33,000/12
if Y = 0 =>>> X = 33,000/10

4000

3000

2000

1000

=> feasible area: OABC

O (0;0)
A (2,000;0)
C (0;2,750)
B (960;1,950)

b/ make or buy (insourcing or outsourcing) phương pháp nào mang lại chi phí thấp hơn thì chốt
* căn cứ vào financial indicators:
+ to make: relevant cost = $? giả sử = A
+ to buy: purchased cost = B
=> if A < B => to make
A > B => to buy

* non finanical factors

- (nếu mua từ bên ngoài) if to buy:
+ quality of products
+ depend on suppliers
+ works for business' employee

Q1
Q2
 1
6
40,000

4,000
1,200
2,800

240,000
196,800

43200

49200
2800

240000
1,200
241200
200000
41200

50000
o thiệt hại của sản phẩm hỏng)

rice, water: added at the beginning of process

gas

rice, water: 5000/(10+10)*10

gas 500/(10+10*60%)*10

cost/completed unit 2812.5/10

physical flows equivalent units
DM CC
22000
44000
66000
55,000 55,000 55,000
1,000 1,000 1,000
10,000 10,000 6000
66,000 66,000 62,000

21,000 15,000 6000

126,900 70,800 56100
147,900 85,800 62100
2.30 1.3 1.00

126,589 71,500 55089

2302 1300 1002

128,891 72,800 56091
19010 13000 6010
147,900 85,800 62100
physical flows equivalent units

DM CC
40,000
52,000
92,000
73,000 73,000 73,000
3,000 3,000 3,000
16,000 16,000 9,600
92,000 92,000 85,600

38,000 30,000 8,000

186,880 126,400 60,480
224,880 156,400 68,480
2.50 1.70 0.80

182,500 124,100 58,400

7,500 5,100 2,400
190,000 129,200 60,800
34,880 27,200 7,680
224,880 156,400 68,480

physical flows equivalent units

DM CC
22000
44000
 66000
22,000 - 11000 11,000*(100%-50%)
33000 33,000 33,000
1,000 1000 1000
10,000 10000 6000
66,000 44,000 51000

21,000 15,000 6,000

126,900 70,800 56,100
147,900 85,800 62,100

2.71 1.61 1.10

21,000 15,000 6,000

12100 0 12100
33,100 15,000 18,100
89400 53100 36300
2709 1609 1100
125,209 69,709 55,500
22691 16091 6600
147,900 85,800 62,100

9000
150
1/90 of good units

100
50

physical flows equivalent units

DM CC
1,000
10150
11,150
9,000 9,000 9,000
100 100 100
 50 50 50
2,000 2,000 600
11,150 11,150 9,750

cost

$ DM CC
2533 1423 1110
39,930 12,180 27,750
42463 13603 28860

4.18 1.22 2.96

37620 10980 26640

418 122 296
38038 11102 26936
209 61 148
4216 2440 1776
42463 13603 28860

physical flows equivalent units

DM CC
40,000 - 10,000
52,000
92,000
30,000 30,000 30,000
43,000 43,000 43,000
3,000 3,000 3,000
16,000 16,000 9,600 60%
92,000 92,000 85,600

38,000 30,000 8,000

186,880 126,400 60,480
224,880 156,400 68,480

2.08 1.37 0.71

38,000 30,000 8,000

 38,700 30,000 8,700
89440 58910 30530

d decision making

rent: 10m/month
clothes mobiphone
COS A B
revenue A' B'
rent 10m 10m
…
net profit 15m 17m

m môi trường….
product 1 product 2
4 5
2 4
2.00 1.25
1 2

40000
40000

25000
25000

15000 (40,000-25,000)

X Y
5 4
15 8
0.33 0.50
2 1 (0.5 > 0.33 nên ưu tiên sản xuất sản phẩm Y trước)
10 12
0.50 0.33
1 2

DLH limited
DM limited

3750 (unit)
 2000 (unit)
2750 (unit)
3300 (unit)

10X + 12Y <= 33,000 X= 960

15X + 8Y <= 30,000 Y=1,950

2000

CM = 5X + 4Y
CMO = 5*0 + 4*0 =
CMO = 5*2000 + 4*0 = 10000
CMC = (5*0 + 4*2750) = 11000
CMB = 5*960 + 4*1950 = 12600 => CM max => B chose with X = 960 unit, Y = 1950 unit

answer
to make
direct materials 600
direct manufacturing labor 250
variable MO 200
fixed MO: 350*30% 105
purchased cost
total relevant information 1155

a/ as cost/unit (to make) = 1,155 < one (to buy) => decision: to mak
b/ non financial factors =>
ANSWER
to make to buy
direct materials 51.00
direct labor 35.00
variable MO 38.00
fixed MO: 93000/10000 9.30
purchased cost 140
total relevant information 133.3 140

as cost/unit (to make) = 133.3 < one (to buy) => decision: to make
co 4k nhung chi ban duoc 1,200
 12h
$5,000 10 nồi completed
500 10 nồi WIP (60%)

2500
312.50
2812.5
281.25
100% DM, 50% MOH
11,000*(100%-50%) 50% da hoan thanh

1,000 + ? = 11,150 >>> ? =

sản phẩm Y trước)
 X

960 unit, Y = 1950 unit

to buy

1,250
1,250

one (to buy) => decision: to make

cision: to make
chapter 21: variable costing
1. phan biet variable costing vs absorption costing

DM variable
DL variable
MOH variable & fixed process costing hoac job order costing
all production cost (fixed + var) goi la absorption costing

sales rev
less COGS
gross profit
less Selling and Administrative Costs
operating income

ex 1

answer

DM
DL
MOH
Fixed MOH/unit produced (111k/2k)
total cost per unit
TH1: produced = sold thi ab = var
unit produced 2000
unit sold 2000
opening inventory 0

absorption costing
sales 2k*500 1,000,000
less COGS
DM (2k*150) 300,000
DL (2k*75) 150,000
MOH (2k*20) 40,000
Fixed (55.5*2k) 111,000
total COGS 601,000
gross profit (1M-601k) 399000
less Selling & administrative expenses
variable selling & admin expenses (2k*62.5) 125,000
fixed selling & admin expenses 116,000
total COGS 241,000
operating income (399k-241k) 158000

TH2: sold > produced: operating income của AC < VC

unit produced 2000
unit sold 2500
OB 500
fixed MOH = 111,000 per years

absorption costing cách tính

sales (2,5000*500) 1,250,000
less COGS
DM 2,500*150 375,000
DL 2,500*75 187,500
MOH 2,500*20 50,000
Fixed 2,500*55.50 138,750
total COGS 751,250
gross profit 1,250,000-751,250 498,750
less Selling & Admin Expenses
Var Selling & Admin Expenses 2,500*62.50 156,250
Fixed Selling & Admin Expenses 116,000
total S&A 272,250
operating income 498,750-272,250 226,500

TH3:
Opening Balance = 0
Units produced 2000
Units sold 1800
Fixed MOH 111,000 per year

absorption costing cách tính

sales (1,800*500) 900,000
less COGS
DM 1,800*150 270,000
DL 1,800*75 135,000
MOH 1,800*20 36,000
Fixed 1,800*55.50 99,900
total COGS 540,900
gross profit 900k-540,900 359,100
less Selling & Admin Expenses
Var Selling & Admin Expenses 1,800*62.50 112,500
Fixed Selling & Admin Expenses 116,000
total S&A 228,500
gross profit - total SA
operating income 359,100-228,500 130,600

theo AC
Fixed MOH sold
sold < produced
cost <
operating >

200 x 55.5 = 11.100

bai tap 1: tinh var theo ab

bai tap 2 tinh ab theo var
suy ra
 production cost
only variable costing (no fixed)

g hoac job order costing

variable costing

sales rev
less Variable costs
contribution margin
less Fixed Costs
operating income

absorption costing variable costing

150 150
75 75
20 20
55.5
300.5 245 $/unit
lập incomestatement
variable costing
sales (2k*500)
less Variable costs:
DM
DL
MOH
Selling & Admin expenses
total
contribution margin (1M-615k)
less Fixed Costs:
MOH
Selling & Admin expenses
total
operating income (385k-227k)

lập incomestatement
variable costing
sales (2,500*500)
less Variable costs:
DM
DL
MOH
 Var Selling & Admin expenses (2,500*62.50)
total VC
contribution margin (1,250k-768,750)
less Fixed Costs:
Fixed MOH
Fixed Selling & Admin expenses
total FC
operating income (481,250-227k)

lập incomestatement

variable costing
sales (1,800*500)
less Variable costs:
DM
DL
MOH
Var Selling & Admin expenses (1,800*62.50)
total VC
contribution margin (900k-112,500)
less Fixed Costs:
Fixed MOH
Fixed Selling & Admin expenses
total FC

operating income (346,500-227k)

theo VC

anwers
cach tinh absorption costing
1. product cost per meal
var MOH per meal 3
fixed MOH per meal 660:1200 $0.55
total product cost per meal 3.55

2. income statement x sales

absorption costing
sales 1000*7 7,000
less: COGS
var MOH 1000*3 3,000
fixed MOH 1000*0.55 550
total COGS 3,550
gross profit sales-total COGS 3,450
less: Selling & Admin Expenses
var S&A 1000*1 1,000
fixed S&A 500
Total S&A expenses 1,500
operating income gross profit-total SE 1,950

3. tinh var theo absorption

because produced > sold 1200-1000=200
ab > var 200*0.55= 110 change in inventory * fixed MOH per unit
operating income (var costs) 1950-110=1840

Khi sản xuất > bán ra, Absorption Costing cho lợi nhuận cao hơn vì một phần Fixed MOH được hoãn lại trong hàng tồn kho tha

When production > sales, Absorption Costing reports higher profit because part of Fixed MOH is deferred in inventory rather t

Operating Income under

Operating Income under Absorption Costing is
Absorption Costing cao hơn higher than Variable
Variable Costing vì một phần Costing because a
Fixed MOH bị hoãn lại trong portion of Fixed MOH is
hàng tồn kho. deferred in inventory.
• Chênh lệch lợi nhuận chính • The difference in profit
là Fixed MOH Deferred = is exactly the Fixed MOH
$110. Deferred = $110.

anwers

1. product cost per unit 5

2. variable costing
sales revenue (850*11) 9350
less: variable costs
var MOH (850*5) 4250
var S&A (850*1) 850
total variable costs 5100
contribution margin 4250
less: fixed costs
fixed MOH 315
fixed S&A 450
total fixed costs 765
operating income 3485

3. tinh ab theo var

Because produced units (1,050) > sold units (850), a portion of Fixed MOH is not included in COGS under Absorption Costing b
Vì sản xuất (1,050) > bán (850), nên một phần Fixed MOH không được tính vào COGS theo Absorption Costing mà nằm trong h
Since produced units (1,050) > sold units (850), a portion of Fixed Manufacturing Overhead (MOH) is not included in COGS under Absorption
Operating Income theo Absorption Costing sẽ cao hơn Variable Costing đúng bằng phần Fixed MOH chưa được tính vào COGS
Operating Income under Absorption Costing will be higher than Variable Costing by the amount of Fixed MOH deferred in inve

we have:
fixed MOH per unit 315/1050 = 0.30 total fixed MOH/production
fixed MOH deferred (1050-850)*0.30 = 60 (production-sales)*fixed MOH per unit
operating income (ab costing) 3485 + 60 = 3545

produced > sold thì Ab > Var

1,000,000

300,000
150,000
40,000
125,000
615,000
385,000

111,000
116,000
227,000
158,000

1,250,000

375,000
187,500
50,000
 156,250
768,750
481,250

111,000
116,000
227,000
254,250

900,000

270,000
135,000
36,000
112,500
553,500
346,500

111,000
116,000
227,000

119,500

produced
MOH per unit

H được hoãn lại trong hàng tồn kho thay vì ghi nhận ngay vào chi phí.

d MOH is deferred in inventory rather than expensed.

ed in COGS under Absorption Costing but remains in ending inventory.
heo Absorption Costing mà nằm trong hàng tồn kho cuối kỳ.
H) is not included in COGS under Absorption Costing but remains in ending inventory.
n Fixed MOH chưa được tính vào COGS.
e amount of Fixed MOH deferred in inventory.