Trend Reporting for Non-Value-Added Costs Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 20x1 (actual price per unit of the activity driver is assumed to be equal to the standard price): Activity Activity Driver SQ AQ SP Receiving Receiving orders 12,000 24,000 $21 Assembly Labor hours 99,000 120,000 15 Expediting Orders expedited 0 8,000 50 Storing Number of units 0 16,000 7 Assume that at the beginning of 20x2, Cicleta trained the assembly workers in a new approach that had the objective of increasing the efficiency of the assembly process. Cicleta also began moving toward a JIT purchasing and manufacturing system. When JIT is fully implemented, the demand for expediting is expected to be virtually eliminated. It is expected to take two to three years for full implementation. Assume that receiving cost is a step-fixed cost with steps of 1,500 orders. The other three activities employ resources that are acquired as used and needed. At the end of 20x2, the following results were reported for the four activities: Activity Activity Driver SQ AQ SP Receiving Receiving orders 8,800 8,800 $15 Assembly Labor hours 100,000 103,000 11 Expediting Orders expedited 0 4,000 36 Storing Number of units 0 8,000 5 Required: Prepare a trend report that shows the non-value-added costs for each activity for 20x1 and 20x2 and the change in costs for the two periods. Enter all decreases as positive amounts and all increases as negative amounts. i.e. if 20x1 was 150,000 and 20x2 was 250,000 that would be an increase and would need to be entered as a negative amount. If an amount is zero, enter "0". Cicleta Manufacturing Trend Report: Non-Value-Added Costs For the Years 20x1 and 20x2 Activity 20x1 20x2 Change Receiving $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Assembly fill in the blank 4 fill in the blank 5 fill in the blank 6 Expediting fill in the blank 7 fill in the blank 8 fill in the blank 9 Storing fill in the blank 10 fill in the blank 11 fill in the blank 12 Total $fill in the blank 13 $fill in the blank 14 $fill in the blank 15
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Trend Reporting for Non-Value-Added Costs
Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 20x1 (actual price per unit of the activity driver is assumed to be equal to the standard price):
| Activity | Activity Driver | SQ | AQ | SP |
| Receiving | Receiving orders | 12,000 | 24,000 | $21 |
| Assembly | Labor hours | 99,000 | 120,000 | 15 |
| Expediting | Orders expedited | 0 | 8,000 | 50 |
| Storing | Number of units | 0 | 16,000 | 7 |
Assume that at the beginning of 20x2, Cicleta trained the assembly workers in a new approach that had the objective of increasing the efficiency of the assembly process. Cicleta also began moving toward a JIT purchasing and manufacturing system. When JIT is fully implemented, the demand for expediting is expected to be virtually eliminated. It is expected to take two to three years for full implementation. Assume that receiving cost is a step-fixed cost with steps of 1,500 orders. The other three activities employ resources that are acquired as used and needed. At the end of 20x2, the following results were reported for the four activities:
| Activity | Activity Driver | SQ | AQ | SP |
| Receiving | Receiving orders | 8,800 | 8,800 | $15 |
| Assembly | Labor hours | 100,000 | 103,000 | 11 |
| Expediting | Orders expedited | 0 | 4,000 | 36 |
| Storing | Number of units | 0 | 8,000 | 5 |
Required:
Prepare a trend report that shows the non-value-added costs for each activity for 20x1 and 20x2 and the change in costs for the two periods. Enter all decreases as positive amounts and all increases as negative amounts. i.e. if 20x1 was 150,000 and 20x2 was 250,000 that would be an increase and would need to be entered as a negative amount. If an amount is zero, enter "0".
| Cicleta Manufacturing | |||
| Trend Report: Non-Value-Added Costs | |||
| For the Years 20x1 and 20x2 | |||
| Activity | 20x1 | 20x2 | Change |
| Receiving | $fill in the blank 1 | $fill in the blank 2 | $fill in the blank 3 |
| Assembly | fill in the blank 4 | fill in the blank 5 | fill in the blank 6 |
| Expediting | fill in the blank 7 | fill in the blank 8 | fill in the blank 9 |
| Storing | fill in the blank 10 | fill in the blank 11 | fill in the blank 12 |
| Total | $fill in the blank 13 | $fill in the blank 14 | $fill in the blank 15 |
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