QUESTION 1 Refineries Ltd manufactures sugar, both brown sugar and white sugar. The basic ingredient for both of the sugar products is sugar cane, which costs N$48 per kg. A machine is used to extract the sugar from the sugar cane. The depreciation on the machine amounts to N$1 200 per day, while the machine operator is paid N$200 per day and other conversion costs amount to $10 per kg. The machine can process 10 kg of sugar cane in one day. 1kg of sugar cane is used to produce 10 packets and 8 packets of 1kg brown and white sugar respectively. The selling price per packet amounts to $8 for brown and $12 for white sugar. 10 kgs of sugarcane is required to produce 100 packets of brown sugar and 80 packets of white sugar. During the refinery process all visible molasses is removed from the raw sugarcane, after which it is sold to a cattle feeds’ manufacturer, at a price of $5 per kg. 10kgs of raw sugarcane usually have only 0,5kgs of molasses. REQUIRED; A.) Calculate the cost of both brown and white sugar per packet

QUESTION 1 Refineries Ltd manufactures sugar, both brown sugar and white sugar. The basic ingredient for both of the sugar products is sugar cane, which costs N$48 per kg. A machine is used to extract the sugar from the sugar cane. The depreciation on the machine amounts to N$1 200 per day, while the machine operator is paid N$200 per day and other conversion costs amount to $10 per kg. The machine can process 10 kg of sugar cane in one day. 1kg of sugar cane is used to produce 10 packets and 8 packets of 1kg brown and white sugar respectively. The selling price per packet amounts to $8 for brown and $12 for white sugar. 10 kgs of sugarcane is required to produce 100 packets of brown sugar and 80 packets of white sugar. During the refinery process all visible molasses is removed from the raw sugarcane, after which it is sold to a cattle feeds’ manufacturer, at a price of $5 per kg. 10kgs of raw sugarcane usually have only 0,5kgs of molasses. REQUIRED; A.) Calculate the cost of both brown and white sugar per packet

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 4PA

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