In £'000JanFebMar- Direct materials costs210.000260.000300.000- Direct labour costs140.000 180.000220.000Manufacturing overheads80.00080.00080.000- Advertising cost42.000 54.00066.000- Selling stores renting cost30.00030.00030.000- Selling wages38.00042.00058.000- Administration cost150.000150.000150.0007.0009.00011.000Number of products sold(units)1. Classify the above costs into variable costs, fixed costs andmixed costs. Use high-low method to separate variable andfixed components in the mixed costs.2. Prepare an Managerial Income statement in April. The [58]estimate revenue in April is £2,000,000,000, and the salesvolume is expected to be 14.000 units58

1. Fixed Costs - These are costs which do not change in the change in the level of activity. These…

1. Classify the above costs into variable costs, fixed costs and mixed costs. Use high-low method to separate variable and fixed components in the mixed costs. 2. Prepare an Managerial Income statement in April. The estimate revenue in April is £2,000,000,000, and the sales volume is expected to be 14,000 units

1. Classify the above costs into variable costs, fixed costs and mixed costs. Use high-low method to separate variable and fixed components in the mixed costs. 2. Prepare an Managerial Income statement in April. The estimate revenue in April is £2,000,000,000, and the sales volume is expected to be 14,000 units

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 8MC: What is the conversion cost to manufacture insulated travel cups if the costs are: direct materials,...

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What is the conversion cost to manufacture insulated travel cups if the costs are: direct materials, $17,000; direct labor, $33,000; and manufacturing overhead, $70,000? A. $16,000 B. $50,000 C. $103,000 D. $120000
Total Product J Product K Direct material cost $700,000.00 $400,000.00 $300,000.00 Overhead cost $280,000.00 $160,000.00 $120,000.00 Selling & Administrative $140,000.00 $80,000.00 $60,000.00 Full Cost $1,120,000.00 $640,000.00 $480,000.00 Profit (25% of full cost) $280,000.00 $160,000.00 $120,000.00 Sales $1,400,000.00 $800,000.00 $600,000.00 Selling price per unit $80.00 $60.00 Using the prices calculated above, how much profit would result if the sales were 5,000 units of J and 15,000 units of K instead of 10,000 units of each?
Average Cost per UnitDirect materials . . . . . . . . . . . . . . . . . . . . . . . . . $7.00Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4.00Variable manufacturing overhead . . . . . . . . . $1.50Fixed manufacturing overhead . . . . . . . . . . . $5.00Fixed selling expense . . . . . . . . . . . . . . . . . . . $3.50Fixed administrative expense . . . . . . . . . . . . . $2.50Sales commissions . . . . . . . . . . . . . . . . . . . . . . $1.00Variable administrative expense . . . . . . . . . . $0.50 Answer all questions independently.Required:1. What is the incremental manufacturing cost incurred if the company increases production from 20,000 to 20,001 units?2. What is the incremental cost incurred if the company increases production and sales from 20,000 to 20,001 units?3. Assume that Kubin Company produced 20,000 units and expects to sell 19,800 of them. If a new customer unexpectedly emerges…
Q15. A company manufacturing two products furnishes the following data Annual output: Product Output units Machine Hours Purchase Orders Machine set-ups A 5000 20000 160 20 B 60000 120000 384 44 Total 65000 140000 544 64 The annual overheads are as under. Rs Volume related activity costs 550,000 Set up related costs 820,000 Purchase related costs 618,000 Total 1,988,000 You are required to calculate the overheads cost per unit of each product A and B based on Activity based costing method.
A certain company is selling a specific product with a selling price of P105.00. Data regarding costs incurred are as follows: Direct Materials P600,000 Direct Labor 400,000 Variable Factory Overhead 250,000 Fixed Factory Overhead 850,000 Variable Selling and Other Expenses Per Unit 2.50 Fixed Selling and Other Expenses 250,000 Data regarding units are as follows: Case A Case B Case C Beginning Inventory 20,000 15,000 5,000 Ending Inventory 10,000 15,000 25,000 Produced 50,000 25,000 40,000 Requirements: Compute for the product cost per unit for each case under both absorption costing and variable costing. Compute for the inventory cost for each case under both absorption costing and variable costing. Prepare an income statement for each case under both absorption costing and variable costing.
According to the information given in the table below, which of the following is Cost of Production? Raw materials consumed 184000 Wages 56000 Factory overhead 37 % of prime cost Interest expense 9500 Taxes 3300 Select one: a. 339300 b. 341500 c. 336000 d. 328800
How do you find the net benefit in this? show the method Relevant Cost Amount Sales Revenue (12000 x $31.50) $378,000 Less: Direct Material (12000 x ($16.40-$4.20)) $146,400 Direct Labor (12000 x $4.50) $54,000 Variable Manufacturing Overhead (12000 x $7.50) (Notes) $90,000 Additional setup costs $8400 Special equipment cost $5800 Net benefit $73,400 Notes: Total manufacturing overhead rate $40 per hour Less: Fixed manufacturing overhead (1500000/60000) $25 per hour Variable manufacturing overhead $15 per hour Required machine hour for one unit is half-hour i.e. $7.5 per unit
Harrison , Inc : Advertising Costs President's Salary Tax Payments Factory Repair and Maintenance Direct Materials Used $10,600; 230000; 12, 500 920 Direct Labor Administrative Salaries 27, 500; 36, 22000 How much were Harrison's product costs ? Select one : a . $64,420 Ob . $86,420 . $65,620 Od . $339,520
Choose the correct answers . D.Materials ( 150 000 )$. D.Wages ( 250 000 )$. D.Expencess ( 150 000 )$. Ind.Expencess ( 125000 )$. Marketing cost ( v. ) ( 75000 )$. Ind.Marketing ( f. ) ( 85000 )$.?. Production cost ( using total cost ) . * ( 675000)$ (- 670000)$. ( another option ). ( 835000 )$
Subject: Cost management & accounting Q.3 Compute Factory Cost:Direct Material = Rs. 50,000Conversion Cost = 150,000Prime Cost = 100,000 Q.4 Compute Factory Cost:Prime Cost = Rs. 250,000Direct Material = 100,000Conversion Cost = 380,000 Q.5 Compute: i) Prime Cost ii) Factory CostMaterial = Rs. 75,000 ( 80% Direct )Labour = 100,000 ( 20 % Indirect )Conversion Cost = 180,000 (Indirect Material and Labour are included)
1)Learned Corporation has provided the following information:Cost perUnitCost per PeriodDirect materials $ 5.00Direct labor $ 4.25Variable manufacturing overhead $ 1.85Fixed manufacturing overhead $ 35,000Sales commissions $ 0.70Variable administrative expense $ 0.60Fixed selling and administrative expense $ 9100Required:a. For financial reporting purposes, what is the total amount of product costsincurred to make 7000 units?b. For financial reporting purposes, what is the total amount of period costsincurred to sell 7000 units?c. If the selling price is $23.80 per unit, what is the contribution margin per unitsold? (Round your answer to 2 decimal places.)d. If 8000 units are produced, what is the total amount of direct manufacturingcost incurred?e. If 8000 units are produced, what is the total amount of indirect manufacturingcosts incurred?a. Total product (manufacturing) costb. Total period (manufacturing) costc. Contribution margin per unitd. Total direct manufacturing coste. Total…
Materials Php 65,000.00 (Php 15,000.00 is indirect) Labor Php 70,000.00 (Php 18,000.00 is indirect) Factory overhead Php 95,000.00 (including indirect materials and indirect labor) Unit Produced 1,000 Sold800 General and administrative expense Php 2,600.00 Office Salaries Php 18,600.00 4. Compute total period cost 5. If the selling price is Php 50.00 compute net