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Calculate the units produced?

Calculate the units produced?

FINANCIAL ACCOUNTING
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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Flexible budget for a product as prepare by Anchor Ltd, is given below: Sales – unit 10,000 15,000 20,000 Rs. Rs. Rs. Sales 800,000 1,200,000 1,600,000 Manufacturing cost: Variable 450,000 200,000 600,000 200.000 800,000 300,000 200,000 500,000 Fixed Total manufacturing cost Marketing and other expenses: Variable 650,000 200,000 300,000 400,000 160,000 360,000 160,000 460,000 90,000 160,000 560,000 240,000 Fixed Total Marketing and other expense Operating income / (loss) (60,000) Additional information: The budget of 20,000 units will be used for allocating the fixed manufacturing cost to units of product. • At the end of first six months, 12,000 units have been completed and 6,000 units have been sold @ Rs.80 per unit. • All fixed costs are budgeted and incurred uniformly throughout the year and all costs incurred, coincide with budget. • The over or under applied fixed manufacturing cost is deferred unit the end of the year. (Note: Don't write Comma (,) Full stop (.) and any Rs. Signs in Answer just write in number (i.e. 10000, but not Rs.10,00)) REQUIRED: Calculate the units produced?
Transcribed Image Text:Flexible budget for a product as prepare by Anchor Ltd, is given below: Sales – unit 10,000 15,000 20,000 Rs. Rs. Rs. Sales 800,000 1,200,000 1,600,000 Manufacturing cost: Variable 450,000 200,000 600,000 200.000 800,000 300,000 200,000 500,000 Fixed Total manufacturing cost Marketing and other expenses: Variable 650,000 200,000 300,000 400,000 160,000 360,000 160,000 460,000 90,000 160,000 560,000 240,000 Fixed Total Marketing and other expense Operating income / (loss) (60,000) Additional information: The budget of 20,000 units will be used for allocating the fixed manufacturing cost to units of product. • At the end of first six months, 12,000 units have been completed and 6,000 units have been sold @ Rs.80 per unit. • All fixed costs are budgeted and incurred uniformly throughout the year and all costs incurred, coincide with budget. • The over or under applied fixed manufacturing cost is deferred unit the end of the year. (Note: Don't write Comma (,) Full stop (.) and any Rs. Signs in Answer just write in number (i.e. 10000, but not Rs.10,00)) REQUIRED: Calculate the units produced?
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