Kindly help QUESTION TwoA company manufactures one product and has calculated its cost on a quarterly production budgetof 10 000 units. The selling price is K5 per unit.Sales in the four successive quarters of last year were:Quarter 110 000Quarter 29 000Quarter 37 000Quarter 45 500The level of inventory at the beginning of the year was 1 000 units and the company maintained itsinventory of finished products at the same level at the end of each of the four quarters.Based on its quarterly production budget, the cost per unit was:Prime costКЗ.50Production overhead (variable and fixed)K 0.75Selling and administration overheadК О.30TotalK 4.55Fixed production overhead, which has been taken into account in calculating the above figures, wasK5 000 per quarter. Selling and administration overhead was treated as fixed, and was chargedagainst sales in the period in which it was incurred.Required: using a tabular statement, calculate the net profit of the four quartersa). under absorption costingb). under marginal costing.

The marginal costing values the goods at variable cost, while under absorption costing inventory is…

A company manufactures one product and has calculated its cost on a quarterly production budget of 10 000 units. The selling price is K5 per unit. Sales in the four successive quarters of last year were: Quarter 1 10 000 Quarter 2 9 000 Quarter 3 7 000 Quarter 4 5 500 The level of inventory at the beginning of the year was 1 000 units and the company maintained its inventory of finished products at the same level at the end of each of the four quarters.

A company manufactures one product and has calculated its cost on a quarterly production budget of 10 000 units. The selling price is K5 per unit. Sales in the four successive quarters of last year were: Quarter 1 10 000 Quarter 2 9 000 Quarter 3 7 000 Quarter 4 5 500 The level of inventory at the beginning of the year was 1 000 units and the company maintained its inventory of finished products at the same level at the end of each of the four quarters.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 20E: Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc.,...

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Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc., budgeted sales of the following. At the end of the year, actual sales revenue for Product R and Product S was 3,075,000 and 3,254,000, respectively. The actual price charged for Product R was 25 and for Product S was 20. Only 10 was charged for Product T to encourage more consumers to buy it, and actual sales revenue equaled 540,000 for this product. Required: 1. Calculate the sales price and sales volume variances for each of the three products based on the original budget. 2. Suppose that Product T is a new product just introduced during the year. What pricing strategy is Eastman, Inc., following for this product?
Using the information in the previous exercises about Marleys Manufacturing, determine the operating income for department B, assuming department A sold department B 1,000 units during the month and department A reduces the selling price to the market price.
The fixed overhead budgeted for Ranier Industries at an expected capacity of 500,000 units is 1,500,000. Variable costing is used internally, and the net income is adjusted to an absorption costing net income at year-end. Data collected over the last three years show the following: Determine the adjustment each year to convert the variable costing income to absorption costing net income. Compute the absorption costing net income for each year.
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Ajax Manufacturing produces a single product, which takes 8.0 pounds of direct material per unit produced. The company's policy is to maintain an end-of-quarter inventory of materials equal to 25 percent of the following quarter's material requirements for production. At the end of the 4th quarter, there were 72,000 pounds of material on hand. Assume it is currently the end of the first quarter of the new year. a. How many units of product were produced this quarter? b. Under the assumption that production will increase by 10% in the second quarter, what are the direct material requirements (in pounds) for planned production in the second quarter?
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