Vibrant Ltd. A manufacturing company produces one main product A mad two by-products M and N. For the month of May, 2018, following details are available: Total Cost upto separation point$ 2,20,000. Product/By-product A M N Cost after separation No. of units produced Selling price per unit Estimated net profit as percentage to sales value Estimated selling expenses as percentage to sales value $35000 $24000 4,000 1,800 3,000 $100 $40 $30 20% 30% 20% 15% 15% There is no beginning or closing inventories. Required: Prepare statement showing: 1. Allocation of joint cost; and 2. Product-wise and overall profitability of the company for May, 2018.

Vibrant Ltd. A manufacturing company produces one main product A mad two by-products M and N. For the month of May, 2018, following details are available: Total Cost upto separation point$ 2,20,000. Product/By-product A M N Cost after separation No. of units produced Selling price per unit Estimated net profit as percentage to sales value Estimated selling expenses as percentage to sales value $35000 $24000 4,000 1,800 3,000 $100 $40 $30 20% 30% 20% 15% 15% There is no beginning or closing inventories. Required: Prepare statement showing: 1. Allocation of joint cost; and 2. Product-wise and overall profitability of the company for May, 2018.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Accounting PART B Glico Wings uses FIFO actual costing system. The value of fixed manufacturing cost rate calculated at the end of the year through dividing the actual fixed manufacturing cost by the actual production units. Glico Wings sold only 1 product type called Matcha Mochi which has a selling price $3/unit. Glico Wings prepares income statement using absorption costing as below: 2021 (in $) 2022 (in $) Revenues (Price @ $3) Cost of goods sold: Beginning inventory Variable manufacturing costs Fixed manufacturing costs Cost of goods available for sale Deduct ending inventory Cost of goods sold Gross margin Operating costs: Variable operating costs Fixed operating costs Total operating costs Operating income 3000 3600 400 700 500 700 700 1400 1600 (400) (240) 1000 1360 2000 2240 1000 1200 400 400 1400 1600 600 640 Additional information 2021 2022 Production 1400 unit 1000 unit Required: 1. Prepare income statement based on variable costing for 2021 and 2022 2. Prepare a numerical…
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