Question 1:Estimation of WCThe management of ABC Company Limited has called for a statement showing the WC neededto finance a level of activity of 3,00,000 units of output per year.The cost statement of the company's product, for the above-mentioned activity level, is givenbelow:Cost per unitTK 20Direct materialDirect laborOverheadTotal costTarget profitTarget selling price5TK 154010TK 501. Past records show that raw materials are held in stock, on an average, for two (2) months;2. Work in process (WIP) will approximate to 15 days production;3. Finished goods remain in warehouse on average for 1 month;4. Suppliers for materials extend one month's credit;5. Two months credit is normally allowed to customers (assume all sales are on credit)6. A minimum cash balance of TK 5,00,000 is expected to be maintained;7. The production pattern is assumed to be even during the year.Prepare a Statement of Working Capital Requirements

Computation of annual & monthly requirements 1) Calculation of annual requirements:Raw Material…

Answered: Question 1: Estimation of WC The…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Calculate and Use Ovrehead Rate During the coming accounting year, Baker Manufacturing, Inc. anticipates the following costs, expenses, and operating data: Direct material (16,000 lb) $80,000 Direct labor (@10/hr) 200,000 Indirect materials 12,000 Indirect labor 22,000 Sales Commissions 34,000 Factory administration 16,000 Nonfactory administrative expenses 20,000 Other manufacturing overhead 80,000 a. Calculate the predetermined manufacturing overhead rate for the coming year for each of the following application bases: (1) direct labor hours, (2) direct labor costs, and (3) machine hours. b. For each item in requirement in requirement a, determine the proper application of manufacuring overhead to Job 63, to which 16 direct labor hours, $150 of direct labor cost, and 40 machine…
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b) Production and sales data of Industrial Detergents Ltd are given below: Production (liters) 70,000 Sales (liters) 55,000 nC udgeted financial data for activity level of 60,000 liters per period are as follOwS: Direct materials Cost per liter (¢) Direct labor 2. S0 3.00 Production overhead (200% of direct labor) 6.00 Total cost per liter 11.50 Selling price per liter 18.00 Administrative overheads are fixed at ¢100,000 per period and half of the production overheads are fixed. From the above information, prepare operating statements using marginal and absorplon principles.
Required information [The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses $ 15,000 9,000 6,000 3,120 $ 2,880 Net operating income reversed. In other words, 15. Assume that the amounts of the company's total variable expenses and total fixed expenses assume that the total variable expenses are $3,120 and the total fixed expenses are $9,000. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in unit sales? (Round your intermediate calculations and final answer to 2 decimal places.) Increase in net operating income
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Kk.4. Assume the following information for a company that produced 10,000 units and sold 8,000 units during its first year of operations and produced 8,000 units and sold 10,000 units during its second year of operations: Per Unit Per Year Selling price $ 200 Direct materials $ 73 Direct labor $ 50 Variable manufacturing overhead $ 11 Sales commission $ 8 Fixed selling and administrative expense $ 110,000 Fixed manufacturing overhead $ 300,000 Using absorption costing, what is the net operating income for the second year of operations? Multiple Choice $130,000 $110,000 $160,000 $140,000
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( a ) Period cost ( b ) Expected manufacturing overhead cost for a production level of 60,000 units. Zou Pty Ltd prepared a summary showing the following expected costs for a production level of 50,000 units: Direct labour $ 80,000 Fixed manufacturing overhead 60,000 Fixed selling and administration 110,000 Variable manufacturing overhead 30,000 Variable manufacturing 250,000 Variable selling 70,000 Zou Pty Ltd accounts for all manufacturing costs as inventorial (product) costs. COST SHEET Direct Labour $80,000.00 Direct Material 0 Prime Cost $80,000.00 Fixed Manufacturing Overhead $60,000.00 Variable Manufacturing Overhead 30,000.00 Variable Manufacturing 250,000.00 Conversion Cost $420,000.00 Variable Setting $70,000.00 Fixed Selling and Administration 110,000.00 Product Cost $600,000.00
Sheridan Company recorded operating data for its shoe division for the year as follows: Sales $15840000 Contribution margin 990000 Controllable fixed costs 150000 Average total operating assets 1980000 What is the controllable margin for the year?
Monroe Manufacturing produces and sells a product with a price of $100/unit. The following data has been prepared for its estimated upper and lower levels of activity. Production Category Lower Limit Upper Limit Units of Production 4,000 units 6,000 units Direct Materials $60,000 $90,000 Direct Labor $80,000 $120,000 Manufacturing Overhead: Indirect materials $25,000 $37,500 Indirect labor $40,000 $50,000 Depreciation $20,000 $20,000 Selling and Admin. Expenses: Sales salaries $50,000 $65,000 Office salaries $30,000 $30,000 Advertising $45,000 $45,000 Other $15,000 $20,000 Totals $365,000 $477,500 The only variable expenses for this company are Question 15 options: indirect materials, direct materials, and direct labor. all categories of selling and administrative expenses. indirect materials, indirect labor, direct materials, and direct labor. None of these.
SOLVE THE GIVEN MCQS: 1) Kaaua Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 83 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 13 Direct labor $ 7 Variable manufacturing overhead $ 4 Fixed manufacturing overhead per year $ 396,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 4 Fixed selling and administrative expense per year $ 72,000 Year 1 Year 2 Units in beginning inventory 0 2,000 Units produced during the year 12,000 11,000 Units sold during the year 10,000 9,000 Units in ending inventory 2,000 4,000 Which of the following statements is true for Year 2? A The amount of fixed manufacturing overhead deferred in inventories is $534,000 B The amount of fixed manufacturing overhead deferred in inventories is $78,000 C The amount of fixed…
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