Coe Aggregates Ltd has scheduled the production and sale of 35,700 tonnes of aggregates for the Month of April, 2021. Given the following information: Selling prices: $23.15 / tonne Tax rate 30% (of net income) Operating costs Direct material cost: $5.75 /tonne Direct labour cost: $8.05/ tonne Variable overhead costs: $1.56/tonne Fixed overhead cost: $115,820 Selling and Administrative costs Variable: $1.27/tonne Fixed: $28,000 1)Calculate the expected monthly net income after tax (profit) for the month of April 2021 2)Calculate the scheduled production tonnage and sale required to attain a desired net income after tax (profit) of $78,500 for the month of April 2021. PLEASE type or print clearly
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Coe Aggregates Ltd has scheduled the production and sale of 35,700 tonnes of aggregates for the Month of April, 2021. Given the following information:
Selling prices: $23.15 / tonne
Tax rate 30% (of net income)
Operating costs
Direct material cost: $5.75 /tonne
Direct labour cost: $8.05/ tonne
Variable
Fixed overhead cost: $115,820
Selling and Administrative costs
Variable: $1.27/tonne
Fixed: $28,000
1)Calculate the expected monthly net income after tax (profit) for the month of April 2021
2)Calculate the scheduled production tonnage and sale required to attain a desired net income after tax (profit) of $78,500 for the month of April 2021.
PLEASE type or print clearly
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