We operate a factory that exclusively produces steel pipes. The spreadsheet (ATTACHED AS AN IMAGE) contains comprehensive monthly data on the pipes produced in 2021 and 2022. Please copy the data into your own spreadsheet for calculations. Note that the numbers are entirely fictional and do not reflect real-world figures or trends. For each month, the spreadsheet lists all factory costs, which are categorized into three areas for simplicity: • Cost of raw materials (steel) Cost of energy to run the factory Other costs, including personnel, etc. Additionally, the spreadsheet provides the revenue generated by the sales of pipes that were produced in a given month and sold by the end of 2022. Here's some additional information: ⚫During this period, the factory produced two types of pipes: type A and type B, but only one type at a time: Sometime in 2021, the factory switched from type A to type B. Type B is slightly larger and was expected to have a greater market appeal. ⚫Steel is purchased in large lots, and the cost per kilogram is based on these bulk purchases. The production of pipes uses all the steel in a lot until it's exhausted, and then it moves to the next lot. During the period, three lots were used, with the first one lasting for more than half the time. •After being produced, pipes are all sold within a few months. Question: Based on the information provided, what can we conclude with confidence about the 2021 - 22 production? Please provide your answer by specifying which numbers of statements in below are correct. 1) The cost per kilogram of the first lot of steel was higher than that of the second lot 2) The effective cost of a kWh of energy reached its maximum in January 2022 3) The selling price of type A pipes has been constant across the period 4) The selling price of type B pipes has been constant across the period 5) In June 2021, most pipes produced were of type A 6) The 2022 production was unprofitable overall, even when accounting for the revenues expected from the pipes that have been produced but not yet sold 7)During the period, the production of type A pipes has been unprofitable A B 0 D E F G Items sold H Revenues 1 Items Cost of 2 2021 1 Year Month produced Cost of steel energy 2500 3 2021 2 4 2021 3 5 2021 4 6 2021 5 2932 2821 2818 as of Other costs 2022-12-31 €493,750.00 €282,030.00 €235,000.00 2745 €542,137.50 €306,632.97 €277,245.00 €579,070.00 €324,279.20 €275,608.00 €557,147.50 €318,242.65 €276,458.00 €556,555.00 €349,071.30 €239,530.00 from sold items 2500 €950,000.00 2745 €1,043,100.00 2932 €1,114,160.00 2821 €1,071,980.00 2818 €1,070,840.00 7 2021 6 2563 €513,092.50 €318,938.30 €251,174.00 2563 €1,067,780.00 8 2021 7 2490 €522,900.00 €322,106.40 €283,860.00 2490 €1,369,500.00 9 2021 8 10 2021 9 11 2021 10 12 2021 11 13 2021 12 14 2022 1 15 2022 2 16 2022 3 17 2022 4 18 2022 5 19 2022 6 20 2022 7 21 2022 8 22 2022 9 23 2022 10 24 2022 11 25 2022 12 2549 €535,290.00 €362,712.50 €288,037.00 2661 €558,810.00 €375,520.32 €292,710.00 2592 €544,320.00 €496,855.30 €259,200.00 2635 €553,350.00 €681,727.20 €260,865.00 2602 €546,420.00 €703,788.96 €254,996.00 2719 €570,990.00 €671,484.24 €241,991.00 2544 €662,457.60 €553,472.64 €310,368.00 2445 €759,906.00 €442,799.28 €315,405.00 2451 €761,770.80 €354,532.25 €333,336.00 2531 €786,634.80 €342,292.44 €311,313.00 2419 €751,825.20 €332,835.05 €290,280.00 2447 €760,527.60 €313,666.25 €298,534.00 2512 €696,326.40 €295,411.20 €288,880.00 2573 €605,169.60 €323,765.74 €288,176.00 2694 €633,628.80 €373,840.99 €272,094.00 2715 €638,568.00 €389,526.48 €257,925.00 2680 €630,336.00 €400,263.36 €251,920.00 2549 €1,401,950.00 2661 €1,463,550.00 2592 €1,425,600.00 2635 €1,449,250.00 2602 €1,431,100.00 2719 €1,495,450.00 2544 €1,399,200.00 2445 €1,344,750.00 2451 €1,348,050.00 2531 €1,392,050.00 2371 €1,304,050.00 2447 €1,345,850.00 2135 €1,174,250.00 2419 €1,330,450.00 2074 €1,140,700.00 923 €507,650.00 322 €177,100.00

We operate a factory that exclusively produces steel pipes. The spreadsheet (ATTACHED AS AN IMAGE) contains comprehensive monthly data on the pipes produced in 2021 and 2022. Please copy the data into your own spreadsheet for calculations. Note that the numbers are entirely fictional and do not reflect real-world figures or trends. For each month, the spreadsheet lists all factory costs, which are categorized into three areas for simplicity: • Cost of raw materials (steel) Cost of energy to run the factory Other costs, including personnel, etc. Additionally, the spreadsheet provides the revenue generated by the sales of pipes that were produced in a given month and sold by the end of 2022. Here's some additional information: ⚫During this period, the factory produced two types of pipes: type A and type B, but only one type at a time: Sometime in 2021, the factory switched from type A to type B. Type B is slightly larger and was expected to have a greater market appeal. ⚫Steel is purchased in large lots, and the cost per kilogram is based on these bulk purchases. The production of pipes uses all the steel in a lot until it's exhausted, and then it moves to the next lot. During the period, three lots were used, with the first one lasting for more than half the time. •After being produced, pipes are all sold within a few months. Question: Based on the information provided, what can we conclude with confidence about the 2021 - 22 production? Please provide your answer by specifying which numbers of statements in below are correct. 1) The cost per kilogram of the first lot of steel was higher than that of the second lot 2) The effective cost of a kWh of energy reached its maximum in January 2022 3) The selling price of type A pipes has been constant across the period 4) The selling price of type B pipes has been constant across the period 5) In June 2021, most pipes produced were of type A 6) The 2022 production was unprofitable overall, even when accounting for the revenues expected from the pipes that have been produced but not yet sold 7)During the period, the production of type A pipes has been unprofitable A B 0 D E F G Items sold H Revenues 1 Items Cost of 2 2021 1 Year Month produced Cost of steel energy 2500 3 2021 2 4 2021 3 5 2021 4 6 2021 5 2932 2821 2818 as of Other costs 2022-12-31 €493,750.00 €282,030.00 €235,000.00 2745 €542,137.50 €306,632.97 €277,245.00 €579,070.00 €324,279.20 €275,608.00 €557,147.50 €318,242.65 €276,458.00 €556,555.00 €349,071.30 €239,530.00 from sold items 2500 €950,000.00 2745 €1,043,100.00 2932 €1,114,160.00 2821 €1,071,980.00 2818 €1,070,840.00 7 2021 6 2563 €513,092.50 €318,938.30 €251,174.00 2563 €1,067,780.00 8 2021 7 2490 €522,900.00 €322,106.40 €283,860.00 2490 €1,369,500.00 9 2021 8 10 2021 9 11 2021 10 12 2021 11 13 2021 12 14 2022 1 15 2022 2 16 2022 3 17 2022 4 18 2022 5 19 2022 6 20 2022 7 21 2022 8 22 2022 9 23 2022 10 24 2022 11 25 2022 12 2549 €535,290.00 €362,712.50 €288,037.00 2661 €558,810.00 €375,520.32 €292,710.00 2592 €544,320.00 €496,855.30 €259,200.00 2635 €553,350.00 €681,727.20 €260,865.00 2602 €546,420.00 €703,788.96 €254,996.00 2719 €570,990.00 €671,484.24 €241,991.00 2544 €662,457.60 €553,472.64 €310,368.00 2445 €759,906.00 €442,799.28 €315,405.00 2451 €761,770.80 €354,532.25 €333,336.00 2531 €786,634.80 €342,292.44 €311,313.00 2419 €751,825.20 €332,835.05 €290,280.00 2447 €760,527.60 €313,666.25 €298,534.00 2512 €696,326.40 €295,411.20 €288,880.00 2573 €605,169.60 €323,765.74 €288,176.00 2694 €633,628.80 €373,840.99 €272,094.00 2715 €638,568.00 €389,526.48 €257,925.00 2680 €630,336.00 €400,263.36 €251,920.00 2549 €1,401,950.00 2661 €1,463,550.00 2592 €1,425,600.00 2635 €1,449,250.00 2602 €1,431,100.00 2719 €1,495,450.00 2544 €1,399,200.00 2445 €1,344,750.00 2451 €1,348,050.00 2531 €1,392,050.00 2371 €1,304,050.00 2447 €1,345,850.00 2135 €1,174,250.00 2419 €1,330,450.00 2074 €1,140,700.00 923 €507,650.00 322 €177,100.00

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4EA: Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on...

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