Explain what the impact on the company financial reporting » Full Grade

Question – The following are some data taken from the accounting records of PT. Eternal Health in 2021:

Purchase of raw materials IDR 400,000,000

Direct labor 525,000,000

Indirect labor 230,000,000

Salaries of sales and administration employees 270,000,000

Building depreciation * 200,000,000

Other selling and administrative expenses 420.000.000

Miscellaneous factory costs 700,000,000

Sales revenue (price per unit IDR 325,000) 3.250,000,000

* 75% of the building is used for production activities and the rest for sales and administrative functions

Inventory data:

Required –

1. What is the total production cost in 2021?

2. What is the total prime cost and total conversion cost in 2021?

3. What is the total product cost (inventoriable cost) and the total periodic cost (period cost) in 2021?

4. Explain what the impact on the company’s financial reporting if there is a misclassification of a cost that should be a periodic cost but is recognized as a product cost.

5. What is the total cost of goods manufactured in 2021?

6. What is the total cost of goods sold in 2021?

7. If management calculates costs for 2021 with the cost object being the production division, what is the total direct costs?

8. Which of the costs in the company behaves as variable costs, fixed costs, and mixed costs. Explain your argument.