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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
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
Transcribed Image Text: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
Transcribed Image Text: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
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education