QUESTION 3 Jaime Ltd manufactures and sells a small electric product to order for the computer industry. The estimated selling price and variable costs per unit for next year are as follows: (£ per unit) Selling price 654.00 Variable costs: Direct materials 216.00 Direct labour 108.00 Production overhead 54.00 Selling & distribution overhead 27.00 Jaime Ltd expects to sell 108,000 units next year. Jaime Ltd expects the stock level at the start of the year to be NIL and the stock at the end of the year to be 18,000 units. Information on fixed costs is as follows: Fixed costs: Production overhead 1,452,000 Selling & distribution 360,000 Administration overhead 342,000

QUESTION 3 Jaime Ltd manufactures and sells a small electric product to order for the computer industry. The estimated selling price and variable costs per unit for next year are as follows: (£ per unit) Selling price 654.00 Variable costs: Direct materials 216.00 Direct labour 108.00 Production overhead 54.00 Selling & distribution overhead 27.00 Jaime Ltd expects to sell 108,000 units next year. Jaime Ltd expects the stock level at the start of the year to be NIL and the stock at the end of the year to be 18,000 units. Information on fixed costs is as follows: Fixed costs: Production overhead 1,452,000 Selling & distribution 360,000 Administration overhead 342,000

Name: Using absorption costing:(i) Calculate the production cost per unit. (
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Description: Using absorption costing:(i) Calculate the production cost per unit. (ii) Prepare an income statement for the year. QUESTION 3Jaime Ltd manufactures and sells a small electric product to order for the computer industry.The estimated selling price and

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 12EB: Manufacturing builds and sells switch harnesses for glove boxes. The sales price and variable cost...

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