Al Maha Co. produces 1,200 units of petroleum with direct materials costs of OMR 32,000, Direct Labor costs of OMR 12,000,Variable Overhead costs of OMR 25,000 and Fixed Overhead costs of OMR 22,000. Cman oil Co. offers to produce the units ofpetroleum at OMR 72 per unit. (Make or Buy Decision) The cost to make the petroleum is:Select one:O a. 12,0000O b. 69,000O c. 84,000d. None of the answers are correctO e. 80,000

In accountancy, product cost generally includes direct material cost, direct labor cost, and…

Answered: Al Maha Co. produces 1,200 units of…

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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Denali Industries makes specialized oil well equipment. Use total direct cost as the burden vehicle, and compute the total cost per unit for each model. Total manufacturing indirect costs are $2,500,000, and there are 1000 units manufactured per year for Model A, 600 for Model K, and 500 for Model T. Use total direct cost as the burden vehicle, and compute the total cost per unit for each model.
Peter Company produces four solvents from the same process: A,B,C and D. Joint product costs are P9,000 ( Round to the nearest peso) Product Barrels SP @ Split-Off Pt. Cost to sell @ Split-off Separable Cost Final sales price A 750 P10.00 P6.50 P2.00 P13.50 B 1,000 8.00 4.00 2.50 10.00 C 1,400 11.00 7.00 4.00 15.50 D 2,000 15.00 9.50 4.50 19.50 If Peter Company sells the products after further processing, the following costs to sell will be incurred: A-P2.50 B-P1.00 C-P3.50 D- P6.00 Using the…
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A company produces two products (product A &B) and is currently planning its production mix for the next operating period. the maximum demand of product A is 2,000 units whiles that of product B is also 2,000 units however, the total raw materials required for producing both products is only 60,000kg. the estimated cost, sales and production data of the two products are given below; product(A) Product(B) Direct material:@GH¢10per Kg 240.00 140.00 Direct labor:@GH¢30 per hour 60.00 90.00 fixed overhead 20.00 20.00 variable overhead:@GH¢40 per hour 80.00 120.00 total cost per unit 400.00 370.00 Add profit 50.00 30.00 selling price per unit…
Al Maha Co. produces 1,200 units of petroleum with direct materials costs of OMR 32,000, Direct Labor costs of OMR 12,000, Variable Overhead costs of OMR 25,000 and Fixed Overhead costs of OMR 22,000. Oman oil Co. offers to produce the units of petroleum at OMR 72 per unit. (Make or Buy Decision) The cost to make the petroleum is: Select one: O a. None of the answers are correct O b. 80,000 O c. 69,000 O d. 84,000 O e. 12,0000 ENG 07:35 INTL 25/05/2021
The selling price of a component is 1.45 Riyal with a material cost of 0.8 Riyal. The cost of the machine used to manufacture the component is15000 Riyals. The present production volume is 22000 units. Determine the breakeven quantity, if the cost of the component is 1.5 Riyal from outside supplier. Due to modification in the component design, the material cost is reduced to 0.70 riyal with additional machine cost of 4000 Riyals and increased production quantity to 30000. Guide the manger to select appropriate product for maximum profit based on profit, break-even analysis and justify the selection
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You make widgets, which is a subassembly for you main product of whatsup. An outside vendor has provided you with a quote to supply the widget part for $ 72.00 per unit Your cost records show the following: Your projected production for the widget is 12,500 units Item of Cost Per Unit Cost Direct Material $18.75 Direct Labor $38.00 Variable manufacturing overhead $9.25 Lease on manufacturing facility $36,000.00 per year Depreciation of equipment $2.50 Allocated Corporate Expenses $1.25 If this offer is accepted, you can sublease the manufacturing facility for $15,000 per year All direct and variable costs can be avoided. The equipment has no salvage value How much would net operating income be changed if the outside supplier offer was accepted? Show all calculations for full credit
La Loma Company produces four solvents from the same process: Wan, Tu, Tri, Por. Joint production costs are as follows: Materials - P4, 000; Labor - P3, 0003; Overhead- P2, 000 Disposal cost Further per barrel at per barrel at processing price per split- off Sales price Final sales split- off costs barrel Barrels Wan 750 P10 P6.50 P2.00 P13.50 Tu 1, 000 8 4.00 2.50 10.00 Tri 4, 000 11 7.00 4.00 15.50 Por 2, 000 15 9.50 4.50 19.50 If La Loma sells the products after further processing, the following disposal costs will be incurred: C, P2.50; D, P1.00; E, P3.50; G, P6.00. (Round all answers to the nearest peso) Using a physical measurement method, what amount of joint processing cost is allocated to Product Por?
Al Maha Co. produces 1,200 units of petroleum with direct materials costs of RO 32,000, Direct Labor costs of RO 12,000, Variable Overhead costs of RO 25,000 and Fixed Overhead costs of RO 22,000. Omanoil Co. offers to produce the units of petroleum at RO 72 per unit. (Make or Buy Decision) The cost to buy the petroleum is: Select one: O a. 12,0000 O b. 69,000 O . 80,000 O d. None of the answers are correct O e. 86,400
Peter Company produces four solvents from the same process: A,B,C and D. Joint product costs are P9,000 ( Round to the nearest peso) Product Barrels SP @ Split-Off Pt. Cost to sell @ Split-off Separable Cost Final sales price A 750 P10.00 P6.50 P2.00 P13.50 B 1,000 8.00 4.00 2.50 10.00 C 1,400 11.00 7.00 4.00 15.50 D 2,000 15.00 9.50 4.50 19.50 If Peter Company sells the products after further processing, the following costs to sell will be incurred: A-P2.50 B-P1.00 C-P3.50 D- P6.00 Using a…

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