(a) Calculate Economic Order Quantity from the following information: Annual Consumption Ordering Cost Carrying Cost Per Unit Cost 1,00,000 units $. 50 per order 8% of Average Stock $. 20 (b) Find out the cost of raw materials purchased from the data 2$ given below: 2,00,000 20,000 1,00,000 10,000 Prime cost Closing stock of raw material Direct labour cost Expenses on purchases

(a) Calculate Economic Order Quantity from the following information: Annual Consumption Ordering Cost Carrying Cost Per Unit Cost 1,00,000 units $. 50 per order 8% of Average Stock $. 20 (b) Find out the cost of raw materials purchased from the data 2$ given below: 2,00,000 20,000 1,00,000 10,000 Prime cost Closing stock of raw material Direct labour cost Expenses on purchases

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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For a company with the product portfolio in the Table, determine an aggregate unit and determine the material cost, revenue and net production time per aggregate unit. Family Material Revenue/ Percentage Share Setup Time/Batch Batch Size (hour) Average Production Net Cost/ Unit Unit ($) ($) Time/ Unit Production of Units Sold Time/Unit (hour) 5.76 (hour) A 15 54 8 50 5.60 20 B 7 30 6 150 3.00 3.04 30 3.80 4.80 9 39 8 100 3.88 35 15 12 49 10 50 5.00
The following data was prepared by the Sandhill Company. Total Variable Fixed $ 24/unit Sales price $ 78, 750 Direct materials used Direct labor $91,000 $ 110, 750 $ 13,850 $ 96.900 Manufacturing overhead $ 22,000 $ 12,600 $9,400 Selling and administrative expense 25,500 units Units manufactured 20, 800 units Beginning Finished Goods Inventory 9,000 units Ending Finished Goods Inventory Under variable costing, what is the unit product cost?
Compute for the net operating income under variable costing for year 2
1. What is the net income under variable costing method? 2. What is the net income under absorption costing method?
porated provided the following information regarding its only product: Sale price per unit Direct materials used Direct labor incurred Variable manufacturing overhead Variable selling and administrative expenses Fixed manufacturing overhead Fixed selling and administrative expenses Units produced and sold A. Increase by $100,932 B. Decrease by $100,932 $50 $160,000 $187,000 $122,000 Assume no beginning inventory Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 5,200 units at a sale price of $44 per product? (NOTE: Assume regular sales are not affected by the special order. Round any intermediary calculations to the nearest cent.) C. Increase by $356,668 D. Increase by $228,800 $72,000 $65,000 $12,000 22,000
By using the information given below calculate the net income under the traditional costing method. Show your calculations. (No beginning finished goods inventory.) Variable cost of goods sold per unit Fixed cost of goods sold per unit Variable operating expenses per unit Fixed operating expenses per unit Selling price Number of units sold Number of units produced 18,000 20,000 $4.00 $ 3.00 $1.50 $1.25 $12.00
Menk Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.80 Direct labor $ 3.80 Variable manufacturing overhead $ 2.00 Fixed manufacturing overhead $ 20,200 Sales commissions $ 0.50 Variable administrative expense $ 0.40 Fixed selling and administrative expense $ 10,100 Required: a. If 5,220 units are sold, what is the variable cost per unit sold? Note: Round "Per unit" answer to 2 decimal places. b. If 5,220 units are sold, what is the total amount of variable costs related to the units sold? c. If 5,220 units are produced, what is the total amount of manufacturing overhead cost incurred? a. Variable cost per unit sold b. Total variable costs c. Total manufacturing overhead cost
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Sales price per unit. 51.00 Fixed costs (per month): Selling, general, and administrative (SG&A) 900,000 Manufacturing overhead 1,800,000 Variable costs (per unit): Direct labor 8.00 Direct materials 13.00 Manufacturing overhead 9.00 4.00 SG&A Number of units produced per month. 300,000 units Required: Compute the amounts for each of the following assuming that both production levels are within the relevant range. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 300,000 units 400,000 units a. Prime cost per unit. b. Contribution margin per unit. C. Gross margin per unit. d. Conversion cost per unit. e. Variable cost per unit. f. Full absorption cost per unit. g. Variable production cost per unit. h. Full cost per unit. $
On November 30, the end of the first month of operations, Weatherford Company prepared the following income statement, based on the absorption costing concept: Weatherford Company Absorption Costing Income Statement For the Month Ended November 30 Sales (6,100 units) Cost of goods sold: Cost of goods manufactured (7,000 units) Inventory, November 30 (1,000 units) Total cost of goods sold Gross profit $161,000 Sales Variable cost of goods sold: Variable cost of goods manufactured Inventory, November 30 (23,000) $201,300 138,000 $63,300 Selling and administrative expenses 35,910 Income from operations $27,390 Assume the fixed manufacturing costs were $38,640 and the fixed selling and administrative expenses were $17,590 Prepare an income statement according to the variable costing concept. Round all final answers to whole dollars. Weatherford Company Variable Costing Income Statement For the Month Ended November 30 201,300
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7. Which one of these is not an objective of cost accounting? a.Assisting shareholders in decision making b.Cost control and reduction c.Ascertainment of cost d.Determination of selling price 8. Calculate EOQ from the following details: Consumption per month is 2,000 units, ordering cost is RO 10 per order, purchase price is RO 100 per unit and annual carrying cost is 6%. a.283 units b.245 units c.219 units d.310 units