IRON ORE COST SHEET 1. Please, prepare the cost sheet, based on the following information a) Commodity: Iron Ore b) Quantity: 250,000 MT in bulk c) Exchange rate: US $1.00 = CAD S1.25 d) Cost Ex-warehouse: USD$60 per MT e) Trucking (freight to dock): USDS10,000,000 ) Wharfage and handling: USD$25 per MT g) Finance charge: 2.5% h) Profit margin: 7% i) Agent's commission: USD$125,000
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.
![IRON ORE COST SHEET
1. Please, prepare the cost sheet, based on the following information
a) Commodity: Iron Ore
b) Quantity: 250,000 MT in bulk
c) Exchange rate: US $1.00 = CAD S1.25
d) Cost Ex-warehouse: USD$60 per MT
e) Trucking (freight to dock): USDS10,000,000
) Wharfage and handling: USD$25 per MT
g) Finance charge: 2.5%
h) Profit margin: 7%
i) Agent's commission: USD$125,000
j) Ocean freight: USD$12,500,000 for total shipment
k) Marin insurance: 1% on110% of the C&F value
Please, use the attached cost sheet to make your calculations, show all calculations,
Round your final answer to the nearest dollar amount; then, put the final price to
the nearest $5 amount.
Costs
CADS
USS
Notes
Cost
Cost
Cost [EXW] Ex-warchouse
Trucking (freight to dock)
Cost to Dock
Wharfage and Handling
Cost FAS (beside vessel)
Finance Cha
Profit Margin
Agent's Commission
Price FOB
Convert to US$
(move to new column)
Ocean Freight
Price [CFR] C&F
Marine Insurance
Total [CIF] CIF
Round to the nearest US$
Round to the nearest US$5](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F77285bc8-0a2e-4167-8a0c-57e44c45defb%2F2a6b44c4-30a9-4d11-abba-8a210c786bdb%2Fio7rh6_processed.jpeg&w=3840&q=75)
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