CIF CONTROL SEATS Andean Coffee, whose plant is located in the city of Abrego, Norte de Santander, applies its costs with the following rates: Coffee bean distribution plant Direct labor hours Department Application Rate Department Actual Hours Drying $ 12,245.00 Drying 12,008 Toasted $23,858.00 Toasted 17,380 Packaged $3,357.50 Packaged 3,476 Total real CIF $ 573,547,900.00 Cost management can calculate and account for: CIF applied real CIF CIF closure (take into account under- and over-applications)

"To manage the cost accounting for Andean Coffee's coffee bean distribution plant, we need to calculate the CIF (Cost, Insurance, Freight) applied, the real CIF, and then determine any under- or over-applications for CIF closure. Here's how these calculations are done based on the data provided:

### Data Given
- **Drying Department**:
- Application Rate: $12,245.00 per labor hour
- Actual Hours: 12,008 hours
- **Toasted Department**:
- Application Rate: $23,858.00 per labor hour
- Actual Hours: 17,380 hours
- **Packaged Department**:
- Application Rate: $3,357.50 per labor hour
- Actual Hours: 3,476 hours
- **Total Real CIF**: $573,547,900.00

### Calculations

#### 1. CIF Applied
This is the estimated CIF based on the application rates and the actual hours worked in each department.

\text{CIF Applied} = (\text{Application Rate}_{\text{Drying}} \times \text{Actual Hours}_{\text{Drying}}) + (\text{Application Rate}_{\text{Toasted}} \times \text{Actual Hours}_{\text{Toasted}}) + (\text{Application Rate}_{\text{Packaged}} \times \text{Actual Hours}_{\text{Packaged}})

\text{CIF Applied} = (12,245.00 \times 12,008) + (23,858.00 \times 17,380) + (3,357.50 \times 3,476)

Calculating the CIF applied for each department and summing them up, we get:

- **Drying Department**: $147,037,960.00
- **Toasted Department**: $414,652,040.00
- **Packaged Department**: $11,670,670.00

Therefore, **Total CIF Applied**: $573,360,670.00

#### 2. Real CIF
The total real CIF, as provided, is $573,547,900.00.

#### 3. CIF Closure (Under- or Over-application)
To determine the CIF closure, we subtract the total CIF applied from the real CIF:

\text{CIF Closure} = \text{Real CIF} - \text{Total CIF Applied}

\text{CIF Closure} = 573,547,900.00 - 573,360,670.00

Calculating the CIF closure, we find: $187,230.00

So, the CIF closure indicates an under-application of $187,230.00.

## Answer
The under-applied amount that should be adjusted in the accounting records is $187,230."