5. (a) Explain the meaning of net working capital. (b) A proforma cost sheet of a company provides the following particulars: Elements of Cost Material 40% Direct Labour-20% Overheads-20% The following particulars are available : (i) It is proposed to maintain a level of activity of 200000 units (ii) Selling price is 12 per unit (iii) Raw materials are expected to remain in stores for an average period of one month process, an (iv) Materials will be in average half a month (u) Finished goods are required to be in stock for an average period of one month (vi) Credit allowed to debtors is two months (vii) Credit allowed by suppliers is one month You may assume that sales and production follow a consistent pattern. You are required to prepare a statement of working capital requirements.

5. (a) Explain the meaning of net working capital. (b) A proforma cost sheet of a company provides the following particulars: Elements of Cost Material 40% Direct Labour-20% Overheads-20% The following particulars are available : (i) It is proposed to maintain a level of activity of 200000 units (ii) Selling price is 12 per unit (iii) Raw materials are expected to remain in stores for an average period of one month process, an (iv) Materials will be in average half a month (u) Finished goods are required to be in stock for an average period of one month (vi) Credit allowed to debtors is two months (vii) Credit allowed by suppliers is one month You may assume that sales and production follow a consistent pattern. You are required to prepare a statement of working capital requirements.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...

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Question 5: The Information below is taken from production department of Salalah Company for April: The number of units produced is 10060. All amounts are in OMR. |Total Costs |500000 Variable Cost ? | 400000 Fixed Cost |Direct material cost |Total labor cost |Manufacturing Overhead ? 100000 90000 30000 Calculate: A. Find the missing information in the above table. Some values may not be applicable, explain. B. Calculate cost per unit C. Describe the production costs in the equation form Y =f+ vX, D. Assume Salalah intends to produce 10000 units next month. Calculate total production costs for the month
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Question 5: The Information below is taken from production department of Salalah Company for April: The number of units produced is 10000. All amounts are in OMR. Total Costs Variable Cost Fixed Cost 500000 Direct material cost Total labor cost Manufacturing Overhead 90000 400000 100000 30000 Calculate: A. Find the missing information in the above table. Some values may not be applicable, explain. B. Calculate cost per unit C. Describe the production costs in the equation form Y =f+vX. D. Assume Salalah intends to produce 10000 units next month. Calculate total production costs for the month Question 6: Find the missing information for different companies Output (units) Fixed Costs Variable Costs Total Costs Cost per unit Company A Company B 4000 70000 50000 ? 5000 80000 140000 Company C 130000 8000 30000 Company D 80000 100000 20
Accounts Payable Accounts Receivable Accumulated Depreciation - Machinery Accumulated Depreciation - Office Equipment Accumulated Depreciation - Store Equipment Allowance for Doubtful Accounts Cash Commissions Income Depreciation - Machinery Depreciation - Office Equipment Depreciation - Store Equipment Doubtful Accounts Expense Factory Payroll (60% direct, 40% indirect) Finished Goods Inventory, Mar 1 Finished Goods Inventory, Mar 31 Interest Income Machinery Notes Receivable Office Equipment Office Salaries Other Costs (30% factory, 40% store, 30% office) Prepaid Insurance Expense R. Biff, Capital, Mar 1 R. Biff, Drawing Raw Materials Inventory, Mar 1 Raw Materials Inventory, Mar 31 Raw materials purchases Rent (60% factory, 20% store, 20% office) Repairs and Maintenance (60% factory, 40% office) Salaries and Wages Payable Sales Sales Discount Sales Returns and Allowances Store Equipment Store Salaries Supplies Inventory (50% factory, 30% store, 20% office) Supplies Used (40%…
48. LO.1 & LO. 3–LO.5 (Activity analysis, ABC; pricing; cost drivers; decision making)Hurley Corporation has identifi ed the following overhead costs and cost drivers for the coming year:Overhead Item Cost DriverBudgeted CostBudgeted Activity LevelMachine setup Number of setups $ 20,000 200Inspection Number of inspections 130,000 6,500Material handling Number of material moves 80,000 8,000Engineering Engineering hours 50,000 1,000$280,000Th e following information was collected on three jobs that were completed dur-ing the year:Job 101 Job 102 Job 103Direct material $5,000 $12,000 $8,000Direct labor $2,000 $ 2,000 $4,000Units completed 100 50 200Number of setups 1 2 4Number of inspections 20 10 30Number of material moves 30 10 50Engineering hours 10 50 10Budgeted direct labor cost was $100,000, and budgeted direct material cost was $280,000.a. If the company uses activity-based costing, how much overhead cost should be assigned to Job 101?b. If the company uses activity-based…
Question 5: The Information below is taken from production department of Salalah Company for August: The number of units produced is 20000. All amounts are in OMR. Total Costs Variable Cost Fixed Cost Direct material cost Total labor cost 800000 500000 110000 Manufacturing Overhead 100000 40000 Calculate: A. Find the missing information in the above table. Some values may not be applicable, explain. B. Calculate cost per unit C. Describe the production costs in the equation form Y = f+ yvX. D. Assume Salalah intends to produce 30000 units next month. Calculate total production costs for the month (Ctrl) -
Please use the data in ex 3 to solve 3.1
Consider the information below for a company whose products goes through two processes; material cost of GHC100000 for a quantity of 10000kg, labour cost- GHC50000 and overhead cost as twice the cost of labour. The company expected an output of 9500kg from process 1 but eventually obtained 9400kg. What value should the output be transferred to process 2? OA. GHC36 O B. GHC26 OC. GHC16 D. GHC27
Consider the below diagram showing production process of Company XYZ: Process A 1.25/hour Process B 2.75/hour Process C Process D 0.5/ minute 3.25/ hour What will be the rate of the production for the company? a) 1.25 per hour b) 3.25 per hour c) 7.75 per hour d) 30 per hour
Time: 1 hour, 33 minutes, 00 seconds. v Question Completion Status: Question 29 0.75 Kesterson Corporation has provided the following information: Cost per Unit $17.10 $4.10 $1.50 Cost per Period Direct materials Direct labor Variable manufacturing overhead 16,90 Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense $2.00 $0.30 $3900 The incremental manufacturing cost that the company will incur if it increases production from 6500 to 6501 units is closest to: O $15.60 O $15.30 $18.20 O $12.70 A Moving to another question will save this response.
How can I do this problem? Required: Calculate the cost per equivalent unit for materials, labor and manufacturing overhead and in total Cost per equivalent unit-Weighted-Average Method Material Labor Overhead Working in process, May 1…. $18,000 $5,500 $27,500 Cost Added during May 238,900 $80,300 $401,500 Equivalent units of production 35,000 33,000 33,000