) calculate the cost per unit b) reflect the abnormal loss and cost of rectification in the process account, if any
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Mehta Ltd introduced 5000 units in a process at a cost of rs 10000. The wages and overheads incurred are rs 10000 and rs 8000 respectively . it is expected that 10% of the outputs likely to be defective. the actual output of the goods is 4400 units. the rectification of defective units costs rs 4 per unit
you are required to -
a) calculate the cost per unit
b) reflect the abnormal loss and cost of rectification in the process account, if any
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Solved in 2 steps
- Crane Company has gathered the following information about its product. Direct materials: Each unit of product contains 4.9 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 1.7 pounds. Materials cost $5.30 per pound, but Crane always takes the 2.90% cash discount all of its suppliers offer. Freight costs average $0.38 per pound. Direct labor. Each unit requires 1.73 hours of labor. Setup, cleanup, and downtime average 0.43 hours per unit. The average hourly pay rate of Crane's employees is $9.73. Payroll taxes and fringe benefits are an additional $2.53 per hour. Manufacturing overhead. Overhead is applied at a rate of $5.73 per direct labor hour. Compute Crane's total standard cost per unit. (Round answer to 2 decimal places, eg 1.25.) Total standard cost per unitShosalosa Company produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows: Direct materials 45 000 Direct labor 65 000 Variable factory overhead 30 000 Fixed factory overhead 70 000 Total costs 210 000 Of the fixed factory overhead costs, R30 000 is avoidable. Phrasa Company has offered to sell 10 000 units of the same part to Shosalosa Company for R18 per unit. Assuming there is no other use for the facilities, Shosalosa should as this would save R per unit.Storch Corporation takes eight hours to complete the setup process for a certain electrical component, with the setup cost averaging $150 per hour. If the company's competitor can accomplish the same process in six hours, Stanley's non-value-added cost would be: so. $150. $300. S900. $1,200.
- Stefani Company has gathered the following information about its product.Direct materials: Each unit of product contains 4.00 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 1.00 pounds. Materials cost $1 per pound, but Stefani always takes the 1.00% cash discount all of its suppliers offer. Freight costs average $0.25 per pound.Direct labor. Each unit requires 1.80 hours of labor. Setup, cleanup, and downtime average 0.20 hours per unit. The average hourly pay rate of Stefani’s employees is $13.10. Payroll taxes and fringe benefits are an additional $2.60 per hour.Manufacturing overhead. Overhead is applied at a rate of $4.90 per direct labor hour.Compute Stefani’s total standard cost per unit. (Round answer to 2 decimal places, e.g. 1.25.) Total standard cost per unit $enter the Total standard cost per unit in dollars rounded to 2 decimal placesCompany A manufactures two products A and B that sells for 120 € and 80 € respectively. Each product uses only one type of raw materials that costs € 6 per kilogram. The company has the capacity to annually produce 100,000 units of each product. The company considers its traceable fixed mahufacturing overhead to be avoidable and its common fixed expenses are unavoidable and have been allocated to products based on sales in euros. The Company's average cost per unit for each product at the annual level of activity is provided in the table. Items Product costs in euro A B Direct materials 30 12 Direct labor 20 15 Variable manufacturing overhead 7 5 Traceable fixed manufacturing overhead 16 18 Variable selling expenses 12 8 Common fixed expenses 15 10 Total costs per unit 100 68 (Answer each question independently unless instructed otherwise) Calculate what is the company's total amount of common fixed expenses.Consider the information below for a company whose products goes through two processes; material cost of GH¢100000 for a quantity of 10000kg, labour cost- GH¢50000 and overhead cost as twice the cost of labour. The company expected an output of 9500kg from process 1 but eventually obtained 9400kg. The actual output of 9400kg shows thatA. A normal loss of 600kg is incurredB. There is an abnormal gain of 100kgC. There is an abnormal loss of GH¢2632D. Cannot determine without further details
- The selected answer is incorrectCompany A manufactures two products A and B that sells for 120€ and 80€ respectively. Each product uses only one type of raw materials that costs 6€ per kilogram. The company has the capacity to annually produce 100000 units of each product. The company considers its traceable fixed mahufacturing overhead to be avoidable and its common fixed expenses are unavoidable and have been allocated to products based on sales in euros. Company's average cost per unit for each product at annual level of activity is provided in the table. Items Product costs in euro A B Direct materials 30 12 Direct labour 20 15 Variable manufacturing overhead 7 5 Traceable fixed manufacturing overhead 16 18 Variable selling expenses 12 8 Common fixed expenses 15 10 Total costs per unit 100 68 (Answer each question independently unless instructed otherwise) Assume that Company normally produces and sells 40000 units of product B per year. Evaluate, what is the financial advantage…Gadubhai
- Company A manufactures two products A and B that sells for 120 € and 80 € respectively. Each product uses only one type of raw materials that costs € 6 per kilogram. The company has the capacity to annually produce 100,000 units of each product. The company considers its traceable fixed mahufacturing overhead to be avoidable and its common fixed expenses are unavoidable and have been allocated to products based on sales in euros. The Company's average cost per unit for each product at the annual level of activity is provided in the table. Items Product costs in euro A B Direct materials 30 12 Direct labor 20 15 Variable manufacturing overhead 7 5 Traceable fixed manufacturing overhead 16 18 Variable selling expenses 12 8 Common fixed expenses 15 10 Total costs per unit 100 68 (Answer each question independently unless instructed otherwise) Assume that the Company expects to produce and sell 90000 units of product B during the current year. A new customer…Suman Ltd manufactured and sold 1000 electric irons last year at a price of Rs 800 each. The cost structure of electric iron is as follows: Particulars Materials Labour Variable overheads Total marginal cost Factory overheads (fixed) Total Cost Profit Sales Per unit (Rs) 200 100 50 350 200 550 250 800 Due to heavy competition, price has to be reduced to Rs 750 as suggested by the marketing manager. Is it a good idea? Assuming no change in costs, calculate the number of electrical irons that would have to be sold at the new price t ensure the same amount of profit as that of the last year.Company A manufactures two products A and B that sells for 120€ and 80€ respectively. Each product uses only one type of raw materials that costs 6€ per kilogram. The company has the capacity to annually produce 100000 units of each product. The company considers its traceable fixed mahufacturing overhead to be avoidable and its common fixed expenses are unavoidable and have been allocated to products based on sales in euros. Company's average cost per unit for each product at annual level of activity is provided in the table. Items Product costs in euro A B Direct materials 30 12 Direct labour 20 15 Variable manufacturing overhead 7 5 Traceable fixed manufacturing overhead 16 18 Variable selling expenses 12 8 Common fixed expenses 15 10 Total costs per unit 100 68 (Answer each question independently unless instructed otherwise) Calculate, what contribution margin per kilogram of raw material is earned by product A.