Please help ACC2222 Module Handbook (Part 2)Academic Year 2021-2022SEMINAR 13• Discussion topic: Lecture 13Os Volume-Profit Analysis (Cont d)1.Bottle Ltd, a bottle manuTe has the following information: -Total cost forCost per1,000,000 bottles3.60,00020,00040,00080.000200.000bottle3.Direct matera sDirect laborVariable o erheadsFixed overheads0.060.020.040.080.20Total costsThere is another manufacturer offers to sell Bottle Ltd the same bottles for £0.18 perbottle. If Bottle Ltd buys the bottles, £50,000 of fixed overheads would be elimınated.Required-Should Bottle Ltd mor buy the bottles? Substantiate your answers.

The differential analysis is performed when two alternatives are available with the organisation to…

• Discussion topic: Lecture 13 os Volume-Profit Analysis (Cont'd) 1. Bottle Ltd, a bottle manu Te has the following information: - Total cost for Cost per 1,000,000 bottles bottle Direct materias Direct labor Variable o erheads Fixed overheads 60,000 20,000 40,000 0.06 0 02 0.04 0.08 0.20 80.000 Total costs 200.000 There is another manufacturer offers to sell Bottle Ltd the same bottles for £0.18 per bottle. If Bottle Ltd buys the bottles, £50,000 of fixed overheads would be elimınated.

• Discussion topic: Lecture 13 os Volume-Profit Analysis (Cont'd) 1. Bottle Ltd, a bottle manu Te has the following information: - Total cost for Cost per 1,000,000 bottles bottle Direct materias Direct labor Variable o erheads Fixed overheads 60,000 20,000 40,000 0.06 0 02 0.04 0.08 0.20 80.000 Total costs 200.000 There is another manufacturer offers to sell Bottle Ltd the same bottles for £0.18 per bottle. If Bottle Ltd buys the bottles, £50,000 of fixed overheads would be elimınated.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 12.16E: Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that...

See similar textbooks

Similar questions

2021 2020 Usage sales 5700 5300 Other miscellaneous revenue for the financial year 300 200 Total revenue for the year 6000 5500 Cost of use sold 2680 2600 Customer and inventory impairment loss 250 220 GROSS REMUNERATION AND EMPLOYER'S CONTRIBUTIONS 800 750 Impairment provisions for the financial year 50 30 Financial costs for the financial year 300 280 Total operating expenses 900 800 Net profit for the financial year 4980 4680 Balance sheet data 1020 820 Fixed assets and investments 2000 1700 Goods 400 250 Customers minus accumulated impairment 696 1100 Customer promissory notes and bills of exchange 300 700 Cash and trading portfolio 200 350 Total assets 3596 4100 How long is the defensive period of the operation in 2021 (360days)
14. You are given the following Company Information Company LFrom the point of origin Direct materials 120.000Purchases of direct materials 228000Direct labour costs 610000Direct cost initial cost 780000 The stock cost of direct materials is the amount?
58. The portion of the functional income statements of Brief Company for 2021 and 2020 are presented below: 2021 2020 Sales P890,000 P800,000 Cost of goods sold 530,000 450,000 Gross margin 360,000 350,000 Assuming that the selling price in 2021 is reduced by 11 percent effective January 1, calculate the change in gross profit due to change in unit cost. Group of answer choices P32,500 Favorable P32,500 Unfavorable P25,694 Unfavorable P25,694 Favorable
Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. a.Determine the total manufacturing costs and the cost amount per unit for the production and sale of 200,000 units. b.Determine the product cost markup percentage per unit. Round to two decimal place. c.Determine the selling price per unit. Round to the nearest dollar.
Jorasmi Enterprise Trial Balance as at 31 December 2020 Particulars Debit RM Credit RM Inventory of raw materials 1 Jan 2020 21,000 Inventory of finished goods 1 Jan 2020 38,900 Work in progress 1 Jan 2020 13,500 Wages (direct RM180,000, factory indirect RM145,000) 325,000 Royalties 7,000 Carriage inwards (on raw materials) 3,500 Purchases of raw materials 370,000 Productive machinery (cost RM280,000) 230,000 Administration computers (cost RM20,000) 12,000 General factory expenses 31,000 Lighting 7,500 Factory power 13,700 Administration salaries 44,000 Sales representative salaries 30,000 Commission on sales 11,500 Rent 12,000 Insurance 4,200 General administration expenses 13,400 Bank charges 2,300 Discount allowed 4,800 Carriage outwards 5,900 Sales 1,000,000 Account…
Jorasmi Enterprise Trial Balance as at 31 December 2020 Particulars Debit RM Credit RM Inventory of raw materials 1 Jan 2020 21,000 Inventory of finished goods 1 Jan 2020 38,900 Work in progress 1 Jan 2020 13,500 Wages (direct RM180,000, factory indirect RM145,000) 325,000 Royalties 7,000 Carriage inwards (on raw materials) 3,500 Purchases of raw materials 370,000 Productive machinery (cost RM280,000) 230,000 Administration computers (cost RM20,000) 12,000 General factory expenses 31,000 Lighting 7,500 Factory power 13,700 Administration salaries 44,000 Sales representative salaries 30,000 Commission on sales 11,500 Rent 12,000 Insurance 4,200 General administration expenses 13,400 Bank charges 2,300 Discount allowed 4,800 Carriage outwards 5,900 Sales 1,000,000 Account…
PROBLEM 14: MMM Company started operations in 2019. The following data are abstractedfrom the company’s production and sales records: 2019 2020 2021 Number of units produced 120,000 116,250 101,250 Number of units sold 75,000 108,750 97,500 Unit production cost P 4.50 P 5.20 P 5.80 Sales revenue 600,000 900,000 975,000 Using the FIFO cost flow assumption, the gross profit for the year ended December 31, 2021 is:
Isem Co.’s 2019 manufacturing costs were as follows: Direct materials and directlabor P700,000; Other variable manufacturing costs 100,000; Depreciation offactory building and manufacturing equipment 80,000; Other fixedmanufacturing overhead 18,000. What amount should be considered productcost for external reporting purposes? A. P700,000B. P800,000C. P880,000D. P898,000
1. Jorasmi Enterprise Trial Balance as at 31 December 2020 Particulars Debit RM Credit RM Inventory of raw materials 1 Jan 2020 21,000 Inventory of finished goods 1 Jan 2020 38,900 Work in progress 1 Jan 2020 13,500 Wages (direct RM180,000, factory indirect RM145,000) 325,000 Royalties 7,000 Carriage inwards (on raw materials) 3,500 Purchases of raw materials 370,000 Productive machinery (cost RM280,000) 230,000 Administration computers (cost RM20,000) 12,000 General factory expenses 31,000 Lighting 7,500 Factory power 13,700 Administration salaries 44,000 Sales representative salaries 30,000 Commission on sales 11,500 Rent 12,000 Insurance 4,200 General administration expenses 13,400 Bank charges 2,300 Discount allowed 4,800 Carriage outwards 5,900 Sales…
Crane Company sells its product for $10500 per unit. Variable costs per unit are: manufacturing, $5800; and selling and administrative, $120. Fixed costs are: $33600 manufacturing overhead, and $43600 selling and administrative. There was no beginning inventory at 1/1/20. Production was 24 units per year in 2020–2022. Sales were 24 units in 2020, 20 units in 2021, and 28 units in 2022. Income under absorption costing for 2022 is $51040. $38560. $45440. $44360.
25. The following information pertains to the production of Beautiful Company for the month of January 2022: SHOWN IN PICTURE a. • P999,750 b.• P970,000 c. • P996,502 d. • P1,005,000
WRITERS' CompanyYr 2018-19Fountain PenBall pointUnits1000020000Area occupied (sq feet)70008000Variable cost – Direct3225Fixed Cost - Direct (per unit)108Rent - Fixed Cost per month (Indirect - common for all products)3,00,000.00The Fixed indirect cost of Rent of Rs 3,00,000/- is to be allocated to both the productsThe company was doing this on the "number of units" basis till now.You have researched and advised Writers' Company to have Activity Based Costing and have gathered data to support the allocation of the Fixed indirect cost as follows :Break-up of Indirect Fixed CostsAllocation basisRent3,00,000Area of operationsb. Please compute cost per unit of each product on the new method of allocationWRITERS' CompanyWriters' Company produces 2 products presently