i need the answer quickly 1-Assume that an industrial company producing two products x and y with the following costand production dataYDirect70$90 $materials perunitDirect wages50$50 $per unitIndirectindustrialcosts per unitProduction12008000and salesunitunitvolumeCosts are charged to industrial costs on the basis of 200% of direct wages. The company alsouses the + surplus model (30% of industrial costs, setting selling prices for productsRequired:- Determine the current selling price of each producer (x) and (y)2- assuming the following available data on specific activitiesActivity Producer ProducerX needsActivityloady needsratePreparing200 $/7001650Machinesprepare prepareprepareforOperationPurchase150 $/10001000ordersorderorderorderissuedProduct300 $/5002000qualitycheckcheekcheekcheekMachinery 20 h/$related8000 h16000 hactivitiesRequired: Determine the price at which products should be sold using the costs ofactivities3-Briefly explain using the solution results in (1) and (2) the effect of product unit cost error oncompany profitability.

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Answered: 1-Assume that an industrial company…

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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A company manufactures 1000units of outputs using 5000units of materials @ GHC30 each, and pays factory workers, indirect production expenses, and administrative expense of GHC100000, GHC50000, and GHC30000 respectively. If the company sold two-thirds of the goods produced, the total product cost as well as total expenses for the given period is O A. GHC300000 and GHC200000 respectively O B. GHC200000 and GHC30000 respectively OC. GHC230000 and GHC30000 respectively D. GHC300000 and GHC230000 respectively
Company A has the following documents: - Unit production cost 1,000 VND/product (including variable production cost 800 VND/product); - Sales and corporate management expenses are 500 VND/item (in which variable sales and corporate management costs are 120 VND/item); - Production level in the period is 2,000 products; Consumption during the period is 1,500 products. Total fixed costs for the period are (note that production prices are calculated based on production level, selling costs are calculated based on consumption level): a. 970.000₫ b. 870.000 d 1.060.000₫ d. 1.160.000₫
Revenue Variable costs: Direct labor Direct materials Contribution margin Fixed costs Profit margin $0 O $10,000 ($25,000) ($10,000) product X $50,000 O $50,000 $20,000 $30,000 ? ? ? product Y $80,000 $30,000 $20,000 ? ? ? a total $130,000 The company allocates fixed costs based on direct labor dollars. Compute the profit margin for product line X. $50,000 $50,000 $30,000 $25,000 $5,000
A.Prepare Statement of Income and Expenses with a marginal contribution approach. Empresas La Torre presents the following information for the year ended December 31, 2020: Product Costs: Direct materials (Variables) $ 50.00 per unit Direct Labor (Variable) $ 20.00 per hour Variable Indirect Costs $ 10.00 per hour Total Fixed Indirect Costs $ 250,000 Period Expenses Seller Commissions $ 20.00 per unit Variable Administrative Expenses $ 30.00 per unit Total Fixed Administrative Expenses $ 150,000 The company sells solar batteries at $ 200.00 per unit. Making each battery takes 2 hours of direct labor. The company taxes its income at 40%. If the Company sells 10,000 units, prepare a statement of income and expenses using the marginal contribution approach.
The internal manufacturing cost per unit of a component is as follows – Direct Material $5.00 Direct Labour $10.00 Fixed costs $15.00 Total costs $30.00 (a) Given the information above, if the company buys the component, it would however have to pay $17.00, but would still have to meet its fixed cost. Should the company make or buy the component? (b) Based on your answer in (a) above name two factors that can influence the company to buy the product. 2. (a) Describe two (2) methods for allocating support costs to departments. (b) Explain why support costs are allocated to departments. Please answer question 2 thank you very much.
The internal manufacturing cost per unit of a component is as follows – Direct Material $5.00 Direct Labour $10.00 Fixed costs $15.00 Total costs $30.00 (a) Given the information above, if the company buys the component, it would however have to pay $17.00, but would still have to meet its fixed cost. Should the company make or buy the component? (b) Based on your answer in (a) above name two factors that can influence the company to buy the product. 2. (a) Describe two (2) methods for allocating support costs to departments. (b) Explain why support costs are allocated to departments.
be determined using the above information Mazoon Company has information on its revenue and costs is as follows: Selling price per unit $125; Variable costs per unit includes: Direct material $15, Direct manufacturing labor $10, Manufacturing overhead $5, and Selling costs $10; Annual fixed costs $78,000. What is the contribution margin percentage? O a. None of the given answers O b. 68% O c. 70% d. 32% e. 60% NEXT PAGE AGEVindows but Jail ENG G 4)
The Cost Sheet of a product is given as under: OMR Direct Materials 6.00 Direct Wages Factory Overheads: 3.00 Fixed 0.50 Variable 0.50 Administrative Expenses: Selling and Distribution Overheads: 0.75 Fixed 0.25 Variable 0.50 Total 11.50 The selling price per unit is OMR 13. The above figures are for an output of 85,000 units, the capacity of the firm is 100,000 units. A foreign customer is desirous of buying 15,000 units at a price of OMR 10.50 per unit. (A) Advise the manufacturer, whether the order should be accepted.
Blue Incorporated manufactures a product with the following cost structure: Price per unit Selling price R12 Production costs: Material R2 Labour R2 Variable overheads R1 Fixed overheads R5 000 Over a three-year period the production and sales of the product are as follows: Y1 Y2 Y3 Production 2 000 1 000 2 000 Sales 1 000 2 000 2 000 Required: 1.1 You are required to produce the Statement of Financial Performance over the three-year period under the absorption costing. 1.2 Evaluate the application of the absorption costing method in profit reporting.
The Absorption Costing Income Statement of a company is as follows:Normal Capacity in units25,000Sales in units28,000Production in units27,000Rs.Rs.Sales Revenue @ Rs. 50 per unit14,00,000Less : Manufacturing Cost of Goods Sold :Direct Material @ Rs. 5 each1,35,000Direct Labour @ Rs. 10 each2,70,000Variable Overhead @ Rs. 5 each1,35,000Fixed Manufacturing Cost at the Rate of Rs. 8 each2,16,000Total Manufacturing Cost7,56,000Add : Opening Stock : 3,000 units @ Rs. 28 each84,0008,40,000Less : Closing Stock :2,000 units @ Rs. 28 each56,000Cost of Goods Sold7,84,000Gross Profit before Adjustment6,16,000Add : Fixed Cost over Absorbed16,000Gross Profit after Adjustment6,32,000Less : Non-manufacturing Overhead :Fixed Office and Administrative1,50,000Variable Selling Overhead56,000Fixed Selling Overhead92,000Total Non-manufacturing Cost2,98,000Net Income3,34,000Additional Information:The fixed manufacturing and office overhead includes depreciation of Rs. 74,000.Required:(i) Break-even sales…
A company manufactures 1000units of outputs using 5000units of materials @ GH¢30 each, and pays factory workers, indirect production expenses, and administrative expense of GH¢100000, GH¢50000, and GH¢30000 respectively. If the company sold two-thirds of the goods produced, the total product cost as well as total expenses for the given period is?
A company uses activity-based costing to calculate the unit cost of its products. The figures for Period 3 are as follows: Production set-up costs: £84,000. Total production is 40,000 units of each of products A and B, and each run is 2,000 units of A or 5,000 units of B. What is the set-up cost per unit of B? A. £0.10 B. £0.08 C. £0.60 D. £0.29

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