first question An industrial company produces and markets one type of product whose planned data for 2021 was as follows: 1- Planned sales for the seasons: 5000, 4800, 4700, 4500 units respectively: 2- Planned production for the seasons: 4000, 3800, 4400, 4500 units, respectively: 3- Raw materials used in production: The production of one unit requires two types of raw materials (A and B), as follows: Article (A): 3 kg/unit at a purchase price of 1.2 dinars/kg Article (B): 2 kg/unit at a purchase price of 1.4 dinars/kg Required: Preparing the planning budget for the cost of raw materials for the semesters of the year / 2021 second question An industrial company produces and markets one type of product whose planned data for 2021 was as follows: 1- Planned sales for the seasons: 9200, 8400, 6800, 7600 units respectively: 2- The planned production for the seasons: 9350, 8300, 7100, 7400 units respectively: 3- The rate of charging indirect industrial costs (variable costs) per unit 1.5 dinars/unit. 4- The company grants a selling commission at a rate of 3 dinars per unit sold. 5 The annual fixed indirect industrial costs are estimated at 32,000 dinars, of which depreciation represents 20%. 6- The annual fixed marketing costs are estimated at 42,000 dinars, of which 25% are depreciation. Required: Prepare a budget of indirect industrial costs distributed over chapters for the year 2021
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.
first question
An industrial company produces and markets one type of product whose planned data for 2021 was as follows:
1- Planned sales for the seasons: 5000, 4800, 4700, 4500 units respectively:
2- Planned production for the seasons: 4000, 3800, 4400, 4500 units, respectively:
3- Raw materials used in production:
The production of one unit requires two types of raw materials (A and B), as follows:
Article (A): 3 kg/unit at a purchase price of 1.2 dinars/kg
Article (B): 2 kg/unit at a purchase price of 1.4 dinars/kg
Required: Preparing the planning budget for the cost of raw materials for the semesters of the year / 2021
second question
An industrial company produces and markets one type of product whose planned data for 2021 was as follows:
1- Planned sales for the seasons: 9200, 8400, 6800, 7600 units respectively:
2- The planned production for the seasons: 9350, 8300, 7100, 7400 units respectively:
3- The rate of charging indirect industrial costs (variable costs) per unit 1.5 dinars/unit.
4- The company grants a selling commission at a rate of 3 dinars per unit sold.
5 The annual fixed indirect industrial costs are estimated at 32,000 dinars, of which
6- The annual fixed marketing costs are estimated at 42,000 dinars, of which 25% are depreciation.
Required: Prepare a budget of indirect industrial costs distributed over chapters for the year 2021
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