please calculate absoptional and marginal income statemnmts for the firmfrom the listed image files UCK Furmiture produce one product – desks.Each desk is budgeted to require 4 kg of wood at £3 per kg, 4 hours of labour at £2 per hour, andvariable production overheads of £5 per unit.Fixed production overheads are budgeted at £20,000 per month and average production is estimatedto be 10,000 units per month.The selling price is fixed at £35 per unit. There is also a variable selling cost of £1 per unit and fixedselling cost of £2,000 per month.During the first two months X plc expects the following levels of activity:JanuaryFebruaryProduction11,000 units 9,500 unitsSales9,000 units 11,500 units(a) Prepare a cost card using absorption costing and marginal costing. (a) The UCK Fumiture has noticed considerable fluctuation in time spent and expenses paid toelectrician who is on standby for a fixed price plus some extra payment depending upon the urgencyand frequency when he is called.MonthHours spentExpenses (£)January6307960February5057410March7058285AprilМay55575357809110June8009840Using the high-low method, accurately calculate the fixed cost and variable cost and estimate theexpenses if the number of hours required for July and August is 650 and 750 respectively.(b) From the following given data apply the inventory valuation technique.UCK reports the following transactions for 2019:DatePurchasesPurchase CostMay 15100 units£1,000Aug 18200 units2,200Sep 19130 units1,800430 units£5,000

Variable cost is the cost which changes with the change in the output level. For example, direct…

Each desk is budgeted to require 4 kg of wood at £3 per kg, 4 hours of labour at £2 per hour, and variable production overheads of £5 per unit. Fixed production overheads are budgeted at £20,000 per month and average production is estimated to be 10,000 units per month. The selling price is fixed at £35 per unit. There is also a variable selling cost of £1 per unit and fixed selling cost of £2,000 per month. During the first two months X plc expects the following levels of activity: January February Production 11,000 units 9,500 units Sales 9,000 units 11,500 units (a) Prepare a cost card using absorption costing and marginal costing.

Each desk is budgeted to require 4 kg of wood at £3 per kg, 4 hours of labour at £2 per hour, and variable production overheads of £5 per unit. Fixed production overheads are budgeted at £20,000 per month and average production is estimated to be 10,000 units per month. The selling price is fixed at £35 per unit. There is also a variable selling cost of £1 per unit and fixed selling cost of £2,000 per month. During the first two months X plc expects the following levels of activity: January February Production 11,000 units 9,500 units Sales 9,000 units 11,500 units (a) Prepare a cost card using absorption costing and marginal costing.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

In order to assess a company’s ability to fulfi ll its long-term obligations, an analyst wouldmost likely examine:A . activity ratios.
Which ratio measures the overall return on the firm's assets including financial leverage and taxes? Multiple Choice ____ ROA ____ ROE ____ basic earning power ____ profit margin
What are the different types of capital requirements that should be considered while estimating the total capital requirement of an enterprise? Prepare an estimate (in tabular form) of the total capital requirement for a business of your choice.
How is pro forma income statement different from breakeven analysis Please give the answer in at least 150 words
Describe and justify why you would use the following ratios as an analyst to evaluate the performance of a company. Profitability Ratios Liquidity Ratios Gearing Ratios Investment Ratios
All of the following are the tools for Financial Analysis except: 1.Trend Analysis 2.Funds Flow Statements 3.Standard Costing 4.Ratio Analysis
what are some factors that need to reflect in the Income statement? How should it be project these factors for a company company?
Define each of the following terms:a. Weighted average cost of capital, WACC
Write the equations for four ratios that are used to measure how effectively a firmmanages its assets.
Define the terms working capital, current ratio, and acid-test ratio (or quick ratio).
How is the weighted average cost of capital calculated? Write outthe equation
Which of the following gives the basic factors of business operations of which their inter-relationship is studied in Cost-Volume-Profit Analysis? Select one:a. Cost of Production, Volume of Purchases, Quantity of Fixed Assetsb. Cost of production,Volume of production or sales, Profitc. Revenues, Expenses, Equityd. Assets, Liabilities, Equity