Dakalo Lid, a manufacturer of beauty products, value its inventory using First-in-first out (FIFO). The actual results for the 2024 financial year are the following Details Sales Revenue Direct raw materials Direct labour 285 600 000 95 000 000 48 000 000 Variable manufacturing overheads 32 000 000 Fixed manufacturing overheads 60 000 000
Dakalo Lid, a manufacturer of beauty products, value its inventory using First-in-first out (FIFO). The actual results for the 2024 financial year are the following Details Sales Revenue Direct raw materials Direct labour 285 600 000 95 000 000 48 000 000 Variable manufacturing overheads 32 000 000 Fixed manufacturing overheads 60 000 000
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter12: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 12.16E: Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that...
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![Dakalo Ltd, a manufacturer of beauty products, value its inventory using First-in-first out (FIFO). The actual results for the 2024 financial year are the following
Details
Sales Revenue
R
285 600 000
Direct raw materials
95 000 000
Direct labour
48 000 000
Variable manufacturing overheads
32 000 000
Fixed manufacturing overheads
60 000 000
Variable selling cost
Fixed selling cost
Non-manufacturing cost
3 000 000
5000 000
35 000 000
The opening inventory is 120 000 units, actual production 2 000 000 units and sales 2 040 000 units.
• Budgeted and actual fixed manufacturing overhead amounts were equal.
For this question only assumes that:
1.
II.
Opening inventory is valued at R80 per unit
A direct costing system is used.
The total contribution for Dakalo Ltd is:
Select one:
O a. R98 000 000
O b. R105 000 000
O c. R105 120 000
Od. R108 000 000
O e. None of the options
R](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4fac6fa6-bfc5-4af1-8b8d-c81106f7a0e7%2F74a0f9d0-23b5-45c4-a661-cf93e127dc5d%2Fbib673u_processed.png&w=3840&q=75)
Transcribed Image Text:Dakalo Ltd, a manufacturer of beauty products, value its inventory using First-in-first out (FIFO). The actual results for the 2024 financial year are the following
Details
Sales Revenue
R
285 600 000
Direct raw materials
95 000 000
Direct labour
48 000 000
Variable manufacturing overheads
32 000 000
Fixed manufacturing overheads
60 000 000
Variable selling cost
Fixed selling cost
Non-manufacturing cost
3 000 000
5000 000
35 000 000
The opening inventory is 120 000 units, actual production 2 000 000 units and sales 2 040 000 units.
• Budgeted and actual fixed manufacturing overhead amounts were equal.
For this question only assumes that:
1.
II.
Opening inventory is valued at R80 per unit
A direct costing system is used.
The total contribution for Dakalo Ltd is:
Select one:
O a. R98 000 000
O b. R105 000 000
O c. R105 120 000
Od. R108 000 000
O e. None of the options
R
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