3) A. Umar and Osman manufacture and sell energy drinks. The drinks are sold for RM9.10 a bottle to the distributor. The data below is related to the product of energy drinks in 2021. Units production 150,000 120,000 RM RM Direct materials 55,500 18,000 24,000 44,400 Bottles 14,400 Direct labour cost 19,200 Manufacturing factory rental Manufacturing factory utilities 6,700 6,700 28,600 23,200 Management salaries Administrative expenses Delivery costs Factory Supervisors Salaries Salesman salary Depreciation factory equipment Advertising expense Total 21,000 21,000 29,000 29,000 5,300 4,700 8,000 8,000 22,100 3,600 17,900 3,600 1,000 1,000 222,800 193,100 REQUIRED: e cost behavior for each item cost. (CLO3, C3) Calculate the variabte.cost-per- unitrand the fixed cost for each mixed cost. (CLO3, Determine t *XX.XXX 180.000-90.000) bottles of drink. (CL03. C3) ect material and salesman salary if the company produces

3) A. Umar and Osman manufacture and sell energy drinks. The drinks are sold for RM9.10 a bottle to the distributor. The data below is related to the product of energy drinks in 2021. Units production 150,000 120,000 RM RM Direct materials 55,500 18,000 24,000 44,400 Bottles 14,400 Direct labour cost 19,200 Manufacturing factory rental Manufacturing factory utilities 6,700 6,700 28,600 23,200 Management salaries Administrative expenses Delivery costs Factory Supervisors Salaries Salesman salary Depreciation factory equipment Advertising expense Total 21,000 21,000 29,000 29,000 5,300 4,700 8,000 8,000 22,100 3,600 17,900 3,600 1,000 1,000 222,800 193,100 REQUIRED: e cost behavior for each item cost. (CLO3, C3) Calculate the variabte.cost-per- unitrand the fixed cost for each mixed cost. (CLO3, Determine t *XX.XXX 180.000-90.000) bottles of drink. (CL03. C3) ect material and salesman salary if the company produces

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question 3Study the scenario and complete the questions that follow:Nonna Greco LimitedNonna Greco Limited manufactures and sells Italian HIP sunglasses. The following information relatesto January 2020:Units manufactured and sold: 500Income statement:RSales 261 500Less: Manufacturing costs 223 000Material 75 000Labour 50 000Manufacturing overheads (@ R20 per machine hour) 98 00038 500Less: Selling and administrative expenses (60% fixed) 17 500Net profit 21 000The following changes will come into effect on 1 February 2020: A sales price increase of 10%, resulting in a 5% decrease in sales volume. Due to negotiations with the labour union, the labour rate per hour will increase by 6%. It is expected that material costs will increase by 10%.The variable budget for manufacturing overheads indicates a total cost ofR94 400 at a capacity utilisation of 4 600 hours.Source: Hunde, T. (2020)Required:3.1 Calculate the total marginal income and marginal income per unit for the year ended 1…
P2-3A Total Manufacturing Cost. Income Statement, Unit Cost, and Selling Price Two inventors, recently organized as Innovation, Inc., consult you regaridng and planned new product. They have estimates of the costs of materials, labor, overhead, and other expenses for 2019 but need to know how much to chanrge for each unit to earn a profit in 2019 equal to 15% of their estimated total long-term investment of $400,000 (ignore income taxes). Their plans indicate that each unit of the new product requires the following: Direct materials 4 lbs. of a materials costing $5/lb. Direct labor 2 hrs. of a meter former's time at $11/hr. 0.6 hr. of an assembler's time at $8/hr. Major items of production overhead would be annual rent of $46,460 for a factory building, $28,660 rent for machinery, and $21,700 of indirect materials. Other production overhead is estimated to be…
Consider the info provided below as well as the financial statement and answer the questions that follows Pearson & Litt is a manufacturing company in the Eastern Cape. Their factory manufactures glass wine bottles for the Blue Valley Beer Co. 2019 2020 Sales price per unit R15 R19 Variable cost per unit R6 R7 Fixed cost (FC) per annum R650 000 R 855 500 Fixed cost per unit R 3 R 4 Current assets R 450 600 R 560 700 Current liabilities R 510 000 R 780 000 Retained profit R 21 809 R 17 600 Net Sales R 2 900 320…
iii) Determine the cost of direct material and salesman salary if the company produces *XX,XXX (80,000-90,000) bottles of drink. (CLO3, C3) iv) If production unit is *XXXXX (90,000 – 110,000): (CLO3, C3) a) Calculate total product cost b) Calculate total period cost v) Form cost function for: (CLO3, C3) a) Product cost b) Period cost
Consider the info provided below as well as the financial statements and answer the questions that follow.Pearson & Litt is a manufacturing company in the Eastern Cape. Their factory manufactures glass wine bottles for the Blue Valley Beer Co. For 2019 and 2020 respectively :Sales price per unit R15 and R19Variable cost per unit R6 and R7Fixed cost (FC) per annum R650 000 and R 855 500Fixed cost per unit R3 and R4Current assets R450 600 and R560 700Current liabilities R510 000 and R780 000Retained profit R21 809 and R17 600Net Sales R2 900 320 and R 3 100 100Cost of sales R390 000 and R475 000 The gross profit margin indicates how profitable sales have been.Q.1 Calculate the gross profit margin for Pearson & Litt for 2020. Q.2 Explain the results of the gross profit margin calculation.
Consider the info provided below as well as the financial statements and answer the questions that follow.Pearson & Litt is a manufacturing company in the Eastern Cape. Their factory manufactures glass wine bottles for the Blue Valley Beer Co. For 2019 and 2020 respectively :Sales price per unit R15 and R19Variable cost per unit R6 and R7Fixed cost (FC) per annum R650 000 and R 855 500Fixed cost per unit R3 and R4Current assets R450 600 and R560 700Current liabilities R510 000 and R780 000Retained profit R21 809 and R17 600Net Sales R2 900 320 and R 3 100 100Cost of sales R390 000 and R475 000 The current ratio reflects the relationship between the value of the current assets and the extent of the current liabilities of a business.Q.1 Calculate the current ratio for Pearson & Litt for 2019. Q.2 Explain the results of the current‐test ratio.HINT: Include the minimum ratio recommended for the ratio in youranswer.
2. Applehead Technology is a company that purchases a device called the EyePod from a supplier and then sells the devices to retail customers. Applehead ships to its customers FOB shipping point. Applehead is seeking to increase its operating profit as much as possible. If it makes no changes in its operations, the company expects the following for the coming year. # of units sold 30,000 Price $300 per unit Shipping costs $ 3 per unit Cost of merchandise $160 per unit Rent of facilities and equipment $ 1,000,000 Managerial and administrative salaries $ 1,500,000 Knowing that the company wishes to increase its operating profit, Maria Garcia, the marketing manager, says “I think we…
Case 2:Muscat Tubes Manufacturing LLC are the manufacturer of picture tubes for T.V. The following are the details of their operation during 2019. Rate of consumption per week is 200 units for Muscat Tubes Manufacturing LLC. Company estimated inventory carrying cost at 20% per annum. The ordering cost per order is RO 100. The cost incurred for purchasing a tube is RO 500. The rate of consumption per week is 100 to 300 units and lead time to supply is 6 to 8 weeks. During emergency purchase the lead time is 2 weeks.Calculate the following: a. Reorder levelb. Maximum level of stockc. Minimum level of stockd. Average level of stocke. Danger Level
7. Azucarera De Papa manufactures refined sugar. It had the following data during the first quarter of 2020: Sale of refined sugar, net of VAT- P 2,000,000 Purchases of sugar cane from farmers used In the manufacture of refined sugar- 500,000 Purchase of packaging materials, inclusive of VAT- 784,000 Purchase of labels, inclusive of VAT- 112,000 Vat Payable is?
From the information provided below, find the following solutions: 1. An Income Statement2. What is the unit cost of Woods corporation if they produced 20,000 pieces of furniture were produced?3. How does the format of the income statement for a manufacturing concern differ from the income statement of a merchandising business? Advertising expense $ 85,000Amortization expense Patents -$16,000Special Design Cost -$10,000Bad Debts expense -$28,000Depreciation expense – Office equipment -$37,000Depreciation expense – Factory Building -$133,000Depreciation expense – Factory equipment -$78,000Direct Labour -$250,000Factory insurance expired - $62,000Factory supervision - $74,000Factory supplies used - $21,000Factory Utilities -$115,000Finished goods inventory, Jan 1 2008 -$15,000Finished goods inventory, Dec 31 2008 -$12,500Work in process inventory, Jan 1 2008 - $8,000Work in process inventory, Dec 31 2008 -$9,000Indirect labour - $26,000Interest expense -$25,000Miscellaneous expense…
Question 3 Assume that HASF furniture Inc., as described, currently purchases the chair cushions for its lawn set from an outside vendor for $30 per set. Modern Furniture’s chief operations officer wants an analysis of the comparative costs of manufacturing these cushions to determine whether bringing the manufacturing in-house would save the firm money. Additional information shows that if Modern furniture’s were to manufacture the cushions, the materials cost would be $16 and the labor cost would be $10 per set and that it would have to purchase cutting and sewing equipment, which would add $25,000 to annual fixed costs. NOTE: No need to enter comma between numbers Required Computation for 10,000 units What amount should have been inccrued if company produce 10,000 units What amount should have been inccrued if company purhcase 10,000 units from outside What amount company save if company make 10,000 cushions
Question 5 (Marks: 30)Consider the info provided below as well as the financial statements and answer the questionsthat follow. Pearson & Litt is a manufacturing company in the Eastern Cape. Their factory manufactures glasswine bottles for the Blue Valley Beer Co. 2019 2020Sales price per unit R15 R19Variable cost per unit R6 R7Fixed cost (FC) per annum R650 000 R 855 500Fixed cost per unit R3 R4 Current assets R450 600 R560 700Current liabilities R510 000 R780 000Retained profit R21 809 R17 600Net Sales R2 900 320 R 3 100 100Cost of sales R390 000 R475 00018; 19; 20 2020© The Independent Institute of Education (Pty) Ltd 2020Page 11 of 12Q.5.1Q.5.1.1 Calculate the break‐even point for Pearson & Litt for 2019 and 2020. (7)Q.5.1.2 Compare the results of the 2019 and 2020 break‐even point and explainwhy there might be a difference.(3)Q.5.2 The current ratio reflects the relationship between the value of the current assetsand the extent of the current liabilities of a business.…