Boateng Plc is a company that produces and sells one product "Excellence". Informationrelating to the operations of George Plc for the first two months of 2023 are as follows:i)Excellence sells for GHC500 per unit.There were no inventories of Excellence at the end of December 2022.Other relevant information is as follows:Standard cost per unit of Excellence:Direct material and wagesVariable production overheadGHC22030Budgeted and actual costs per month:Fixed production overhead990,000Fixed selling and admin. expenses400,000Variable selling expenses12.5% of salesNormal capacity 110,000 units per monthNumber of units produced and sold:JanuaryFebruarySales (units)128,000110,000Production (units)140,000102,000Required:Using the information above, prepare in a columnar form profit statements for January andFebruary 2023 using:a) Marginal costingb) Absorption costing

The objective of the question is to prepare profit statements for January and February 2023 using…

Answered: Boateng Plc is a company that produces…

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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The subject is Managerial Accounting
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Calculate the total Marginal Income and Net Profit/Loss if all the tables are sold. INFORMATIONSamcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022:1. Total production and sales 2 400 units2. Selling price per table R1 2003. Variable manufacturing costs per table:Direct material R288Direct labour R192Overheads R964. Fixed manufacturing overheads R216 9605. Other costs:Fixed marketing and administrative costs R144 000Sales commission 5%
Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 126 Units in beginning inventory 0 Units produced 1,900 Units sold 1,800 Units in ending inventory 100 Variable costs per unit: Direct materials $ 49 Direct labor $ 28 Variable manufacturing overhead $ 5 Variable selling and administrative expense $ 11 Fixed costs: Fixed manufacturing overhead $ 32,300 Fixed selling and administrative expense $ 23,400 The total contribution margin for the month under variable costing is:
Maher Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 192 Units in beginning inventory 0 Units produced 3,660 Units sold 3,430 Units in ending inventory 230 Variable costs per unit: Direct materials $ 52 Direct labor $ 53 Variable manufacturing overhead $ 15 Variable selling and administrative expense $ 18 Fixed costs: Fixed manufacturing overhead $ 135,420 Fixed selling and administrative $ 13,720 Required: a. What is the unit product cost for the month under variable costing? b. What is the unit product cost for the month under absorption costing? e. Reconcile the variable costing and absorption costing net operating incomes for the month. Costing Net Operating Incomes Variable costing net operating income (loss) Absorption costing net operating income (loss)
Laka (Pty) Ltd has a 31 March year-end. Laka (Pty) Ltd has the following actual information, from which the income statement can be drafted for further analysis: Units sold and produced 11 205 R Sales 179 280 Fixed costs: Administration costs 3 188 Production overhead costs 4 896 Variable costs: Direct materials 56 025 Direct labour 33 615 Overheads 25 772 Selling costs 19 049 What is Laka (Pty) Ltd's breakeven point in units? a.2 022 b.2 021 c.1 224d.1 224,81
Wolsey Industries Inc. expects to maintain the same inventories at the end of 20Y8 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year A summary report of these estimates is as follows: Estimated Fixed Cost Estimated Variable Cost (per unit sold) 2 Production costs: 3 Direct materials 4 Direct labor 5 Factory overhead $56.00 36.00 $194,000.00 20.00 6 Selling expenses: 7 Sales salaries and commissions 110,000.00 8.00 8 Advertising 42,000.00 9 Travel 13,000.00 10 Miscellaneous selling expense 7,000.00 1.00 11 Administrative expenses: 12 Office and officers' salaries 13 Supplies 124,600.00 8,000.00 6.00
Bairstow Company manufactures and sells a single product. The following costs were incurred during 2021, the company’s first year of operations: Variable Costs per unit: Production: Direct materials $ 6.00 Direct labour $ 9.00 Variable Manufacturing Overhead $ 3.00 Selling and administrative $ 4.00 FIXED COSTS PER YEAR Manufacturing Overhead $ 300,000 Selling and administrative $ 190,000 During 2021, the company produced 25,000 units and sold 20,000 units. The selling price of the company’s product is $ 50 per unit. Required: 1. Assume that the company uses the absorption costing method: Compute the cost to produce one unit of product. Prepare an income statement for 2021. Reconcile the variable costing and absorption costing operating incomes. Explain the reasons for the differences between the variable costing and absorption costing net incomes.
How many units must be sold if the company wishes to earn a net profit of R298 920. INFORMATIONSamcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022:1. Total production and sales 2 400 units2. Selling price per table R1 2003. Variable manufacturing costs per table:Direct material R288Direct labour R192Overheads R964. Fixed manufacturing overheads R216 9605. Other costs:Fixed marketing and administrative costs R144 000Sales commission 5%
Cecilia.com Ltd commenced business on March 1 making one product only and the cost card is as follows; Direct labour 5 Direct material 8 Variable production overhead 2 Fixed production overhead 5 Standard production cost 20 The fixed production overhead figure has been calculated on the basis of a budgeted normal output of 36,000 units per annum. The fixed production overhead incurred in March was GH¢15,000. Selling, distribution and administration expenses are: Fixed GH¢10,000 Variable 15% of the sales value The selling price per unit is GH¢35and the number of units produced and sold were; Production 2,000 Sales…
Bairstow Company manufactures and sells a single product. The following costs wereincurred during 2021, the company’s first year of operations:Variable Costs per unit:Production: Direct materials $ 6.00 Direct labour $ 9.00 Variable Manufacturing Overhead $ 3.00Selling and administrative $ 4.00FIXED COSTS PER YEARManufacturing Overhead $ 300,000Selling and administrative $ 190,000During 2021, the company produced 25,000 units and sold 20,000 units. The selling price ofthe company’s product is $ 50 per unit.Required: 2. Assume the company uses the variable costing method: a. Compute the cost to produce one unit of product. (2 marks) b. Prepare an income statement for 2021. (8 marks)
S Conner's Fixtures produces and sells a single product, a specialized plumbing fixture. The business began operations on January 1 this year and its costs incurred during the year include the following: Variable costs (based on units produced): Direct materials cost Direct manufacturing labor costs Indirect manufacturing costs Administration and marketing Fixed costs: Administration and marketing costs Indirect manufacturing costs $ 24,000 108,000 21,600 13,500 72,000 24,000 At the end of the first year (December 31), direct materials inventory consisted of 7,500 pounds of material. Production in that year was 10,000 fixtures. All prices and unit variable costs remained constant during the year. Sales revenue for year 1 was $293,250. Finished goods inventory was $24.420 on December 31. Each finished fixture requires 3.20 pounds of material. Required: a. Compute the direct materials inventory cost, December 31. b. Compute the finished goods ending inventory in units (fixtures) on…

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