FUNDAMENTAL ACCT PRIN TEXT+CONNECT CODE
15th Edition
ISBN: 9781265564483
Author: Wild
Publisher: MCG
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Textbook Question
Chapter 21, Problem 4E
Exercise 21-4
Measurement of cost behavior using a scatter diagram
P1
A company reports the Mowing information about its unit sales and its cost of sales. Each unit sells for $500. Use these data to prepare a scatter diagram.
Draw an estimated line of cost behavior and determine whether the cost appears to be variable, fixed, or mixed.
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Question 2
Answer the questions from the information provided.
2.1 Use the information given below to prepare the Income
Statement for March 2022 according to the absorption costing
method.
INFORMATION
The following information was extracted from the accounting
records of Alpha Enterprises for the month ended 31 March
2022:
Sales
Selling price per unit
Finished products on 01 March 2022
Products manufactured during the month
Variable manufacturing costs per unit
Variable selling and administrative costs per unit sold
Fixed manufacturing costs
Fixed selling and administrative costs
Additional information
3 200 units
R100
400 units
3 600 units
R26
R12
R25 200
R12 400
The variable manufacturing cost per unit and total
manufacturing cost per unit of the finished goods on 01 March
2022 was R21.60 and R26.20 respectively.
Question 1
Answer:
Question 2
a
Total Manufacturing Costs:
Variable
Fixed Factory Overhead
Total
Cost Per Unit
b
Markup Percentage
%
Seling Price
REQUIRED
Prepare the Income Statement of Abbey Limited for the month ended 31 March 2023 using the following
methods:
2.1 Absorption costing
2.2 Variable costing
INFORMATION
The following information was extracted from the accounting records of Abbey Limited for the month ended 31
March 2023:
Inventory on 01 March 2023
Production
Sales
Selling price per unit
Manufacturing costs:
Fixed manufacturing overheads costs
Direct materials cost per unit
Direct labour cost per unit
Variable manufacturing overheads costs per unit
Marketing costs:
Advertising
Sales personnel's salaries and commission
Delivery costs
Administration costs:
Salaries
Other office costs
Nil
50 000 units
40 000 units
R200
R480 000
R40
R24
R16
R32 000 per month
R36 000 per month plus 5% of sales
R24 per unit sold
R80 000 per month
R32 000 per month plus R16 per unit sold
Chapter 21 Solutions
FUNDAMENTAL ACCT PRIN TEXT+CONNECT CODE
Ch. 21 - Prob. 1DQCh. 21 - Prob. 2DQCh. 21 - When output volume increases, do fixed costs per...Ch. 21 - Prob. 4DQCh. 21 - Prob. 5DQCh. 21 - Describe the contribution margin ratio in...Ch. 21 - Prob. 7DQCh. 21 - Prob. 8DQCh. 21 - Prob. 9DQCh. 21 - Prob. 10DQ
Ch. 21 - How does assuming that operating activity occurs...Ch. 21 - Prob. 12DQCh. 21 - Prob. 13DQCh. 21 - Prob. 14DQCh. 21 - Prob. 15DQCh. 21 - Prob. 16DQCh. 21 - Prob. 17DQCh. 21 - Prob. 18DQCh. 21 - Prob. 19DQCh. 21 - Prob. 20DQCh. 21 - Prob. 21DQCh. 21 - Prob. 1QSCh. 21 - Prob. 2QSCh. 21 - Prob. 3QSCh. 21 - Prob. 4QSCh. 21 - Prob. 5QSCh. 21 - Prob. 6QSCh. 21 - Prob. 7QSCh. 21 - Prob. 8QSCh. 21 - Prob. 9QSCh. 21 - Prob. 10QSCh. 21 - Prob. 11QSCh. 21 - Prob. 12QSCh. 21 - Prob. 13QSCh. 21 - Prob. 14QSCh. 21 - Prob. 15QSCh. 21 - Prob. 16QSCh. 21 - Prob. 17QSCh. 21 - Prob. 1ECh. 21 - Prob. 2ECh. 21 - Prob. 3ECh. 21 - Exercise 21-4 Measurement of cost behavior using a...Ch. 21 - Prob. 5ECh. 21 - Prob. 6ECh. 21 - Prob. 7ECh. 21 - Prob. 8ECh. 21 - Prob. 9ECh. 21 - Prob. 10ECh. 21 - Prob. 11ECh. 21 - Prob. 12ECh. 21 - Prob. 13ECh. 21 - Prob. 14ECh. 21 - Prob. 15ECh. 21 - Prob. 16ECh. 21 - Prob. 17ECh. 21 - Prob. 18ECh. 21 - Prob. 19ECh. 21 - Prob. 20ECh. 21 - Prob. 21ECh. 21 - Prob. 22ECh. 21 - Prob. 23ECh. 21 - Prob. 24ECh. 21 - Prob. 25ECh. 21 - Prob. 1APSACh. 21 - Prob. 2APSACh. 21 - Prob. 3APSACh. 21 - Prob. 4APSACh. 21 - Prob. 5APSACh. 21 - Prob. 6APSACh. 21 - Prob. 7APSACh. 21 - Prob. 1BPSBCh. 21 - Prob. 2BPSBCh. 21 - Prob. 3BPSBCh. 21 - Prob. 4BPSBCh. 21 - Prob. 5BPSBCh. 21 - Prob. 6BPSBCh. 21 - Prob. 7BPSBCh. 21 - Prob. 21SPCh. 21 - Prob. 1BTNCh. 21 - Prob. 2BTNCh. 21 - Prob. 3BTNCh. 21 - Prob. 4BTNCh. 21 - Prob. 5BTNCh. 21 - Prob. 6BTNCh. 21 - Prob. 7BTNCh. 21 - Prob. 8BTNCh. 21 - Prob. 9BTN
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