Essay on Acconting Graded Unit 1

2448 WordsOct 1, 201210 Pages
Lidia Kujawska HND Accounting Year 2 Graded Unit 2 Development Stage Moorland Brewery plans to expand its production to new lager called Puma. They found buyer for it and right now they need to develop stage of producing new beer. The first calculation must start from cost statement for the new product. Primarily there is need to find out how much ingredients brewery will need to produce 2 litre of lager, this amount give company a clue how much they will pay for one mashing of beer. Direct Material ( 2 litre bottle ) | | | £ | | | | | | | | Malted Barley ( £600/1000000g x140 g) | | | 0.084 | Yeast (£400/1000000*10 g) | | | | | 0.004 | Hops (£2/1000g *2 g) | | | | | 0.004 | | | | | | |…show more content…
There is more adequate to use different method for calculation. Materials budget based on mashing not number of bottles. In January there is 2 mashing per month, but since February until June is 3 each month. January 33,750 bottles/13,000 bottles per mashing = 2.60 mashing February – June 37,500/13,000 bottles per mashing = 2.87 mashing This calculation could be rounded up or down, depends on assumptions made. January is the first month of production and it is possible that make all arrangements and start of production of new lager can give company some delays. There is materials budget per mashing: Materials Budget for 6 months per mashing | | | | | | | | | | | | | | January | February | March | April | May | June | Required for prod. | £414 | 621 | 621 | 621 | 621 | 621 | Add:cl stock | 0 | 60 | 60 | 60 | 60 | 60 | | | £414 | 681 | 681 | 681 | 681 | 681 | Less: op stock | £60 | £60 | £60 | £60 | £60 | £60 | Materials purchased | £354 | 621 | 621 | 621 | 621 | 621 | | | | | | | | | | | | | | | | | | | | | | | | | 2 mashing x £207(direct materials per mashing)= | | £414 | | | | | | | | | | 3 mashing x 207= | | | | | £621 | | | |

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