The following costs were incurred in the manufacturing and selling of champagne glasses during the past financial year: Depreciation on machines: R15 000 (capacity per machine: 28 000 champagne glasses per annum) Direct wages: R95 000 Direct material: R130 000 Factory rent: R30 000 Variable selling costs: R45 000 During the past financial year, 28 750 products were manufactured and sold. Selling price is R12 per unit. Determine: 5 1. Total costs, unit costs and profit (all prices are unchanged) at the following production levels: a) 25 000 units and 23 250 units sold b) 9 000 units and all sold

The following costs were incurred in the manufacturing and selling of champagne glasses during the past financial year: Depreciation on machines: R15 000 (capacity per machine: 28 000 champagne glasses per annum) Direct wages: R95 000 Direct material: R130 000 Factory rent: R30 000 Variable selling costs: R45 000 During the past financial year, 28 750 products were manufactured and sold. Selling price is R12 per unit. Determine: 5 1. Total costs, unit costs and profit (all prices are unchanged) at the following production levels: a) 25 000 units and 23 250 units sold b) 9 000 units and all sold

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

The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses* Total fixed expenses Net operating income (loss) *Allocated on the basis of sales dollars. Total $ 917,000 470,000 447,000 70,400 43,500 114,500 183,400 411,800 $ 35,200 Dirt Bikes $ 265,000 116,000 149,000 8,700 20,300 40,100 53,000 122,100 $ 26,900 Mountain Bikes $ 400,000 202,000 198,000 40,800 7,800 38,200 80,000 166,800 $ 31,200 Racing Bikes $ 252,000 152,000 100,000 Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? 2. Should the production and sale of racing bikes be discontinued? 20,900 15,400 36,200 50,400 122,900 $ (22,900) Management is concerned…
Coyle Manufacturing reports the following information for year 1: Sales revenue (69,000 units) $ 5,265,000 Manufacturing costs Materials $ 311,000 Variable cash costs 256,000 Fixed cash costs 599,000 Depreciation (fixed) 1,809,000 Marketing and administrative costs Marketing (variable, cash) 850,000 Marketing depreciation 278,000 Administrative (fixed, cash) 925,000 Administrative depreciation 143,000 Total costs $ 5,171,000 Operating profits (losses) $ 94,000 All depreciation charges are fixed. Manufacturing depreciation is expected to increase by 10 percent in year 2. Marketing and administrative depreciation are expected to remain the same for year 2. Sales volume is expected to increase by 5 percent, but prices are expected to fall by 10 percent. Materials costs per unit are expected to decrease by 8 percent. Unit variable cash manufacturing costs are expected to increase by 15 percent. Fixed cash costs are expected to increase by 6 percent.…
A company uses a machine to manufacture its product. The operating results of the company for a quarter follows: Sales $2,000,000 Cost of sales 500,000 Operating expenses excluding depreciation 300,000 Depreciation of machine 260,000 1,060,000 Net income $940,000 The present operation can continue or the machine can be used to produce a new product that could produce P2,200,000 revenue per quarter. The cost to manufacture the new product plus operating expenses, exclusive of depreciation will be P800,000. Which alternative is better? Support your answer with computation.
A cement manufacturer has supplied the following data: Tons of cement produced and sold Sales revenue 260,000 $ 1,118,000 Variable manufacturing expense $ 429,000 Fixed manufacturing expense $ 288,000 $ 91,000 Variable selling and administrative expense Fixed selling and administrative expense Net operating income $ 228,000 $82,000 What is the company's unit contribution margin? (Round your intermediate calculations to 2 decimal places.) Multiple Choice $4.30 per unit $0.32 per unit h
The selling price of a component is 1.45 Riyal with a material cost of 0.8 Riyal. The cost of the machine used to manufacture the component is15000 Riyals. The present production volume is 22000 units. Determine the breakeven quantity, if the cost of the component is 1.5 Riyal from outside supplier. Due to modification in the component design, the material cost is reduced to 0.70 riyal with additional machine cost of 4000 Riyals and increased production quantity to 30000. Guide the manger to select appropriate product for maximum profit based on profit, break-even analysis and justify the selection
salarıes of P80,000. The total factory utilities expense incurred for the period was P360,000, repair and maintenance of factory equipment, P20,000 and depreciation on factory equipment was reported to be P120,000. The company uses the actual costing method of accumulating costs and it maintains a 35% mark up on costs for establishing its selling price. rofit ctions. olden Compute for: a) The total factory costs for the period. b) The cost of goods sold for the period. c) The net income or (loss) for the period. Problem 1-5. The following costs were actually incurred in the production of 10,000 units of Product A: ai bassouo oRaw materials, of which 10% is indirect Factory labor, of which 20% is indirect labor P1,200,500 1,045,000 900,000 19vsd Factory overhead, other than indirect materials and indirect labor les. ine Factory overhead charged to production is equivalent to 110% of direct labor costs. At the end of the period, inspection revealed that the total costs of goods…
The company manufactures product X which has a selling price of ₱48 per unit. Unit costs associated with the manufacture and sale of product X based on 30,000 units manufactured and sold each year are: Direct materials→₱10.00; Direct labor→₱6.00; Variable manufacturing overhead→₱5.00; Fixed manufacturing overhead→₱6.00; Variable selling, general and administrative expenses→₱3.00; Fixed selling, general and administrative expenses→₱8.00. The company uses the absorption costing approach to cost-plus pricing . The percentage markup being used to determine the selling price for product X is: a. 100.0% b. 37.5% c. 60.0% d. 40.0%
Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Product Weedban $ 9.00 $ 2.50 $ 135,000 Greengrow $33.00 $ 13.00 $ 49,000 Last year the company produced and sold 36,500 units of Weedban and 16,500 units of Greengrow. Its annual common fixed expenses are $111,000. Required: Prepare a contribution format income statement segmented by product lines. Total Company Product Line Weedban Greengrow
Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Weedban $9.00 $ 2.60 $ 137,000 Product Greengrow $36.00 $ 10.00 $ 38,000 Last year the company produced and sold 36,500 units of Weedban and 17,500 units of Greengrow. Its annual common fixed expenses are $98,000. Required: Prepare a contribution format income statement segmented by product lines. Total Company Product Line Weedban Greengrow
The normal capacity of an entity is 350 000 units per annum. The raw material cost is R220 per unit and direct labour is R250 per unit. 9. Variable production overheads are R60 per unit and fixed production overheads incurred amounts to R5 250 000. The closing balance of finished goods is 9 500 units (assume there is no opening balance). Which amount is the correct cost of sales figure if the actual production was 280 000 units for the year? 1. R145 000 000 2. R146 500 000 3. R147 422 500 4. R148 472 500
Whipple Company has sales revenue of $585,000. Cost of goods sold before adjustment is $335,000. The company uses machine hours to allocate manufacturing overhead and estimated 10,450 machine hours would be used during the year. For the year, manufacturing overhead was under-allocated by $13,400. The company's actual manufacturing overhead is $91,000. What is the actual gross profit? Select one: a. $250,000 b. $159,000 c. $236,600 d. $104,400 e. $263,400