A refinery buys 15 million barrels of crude oil at a market price of $40 per barrel on11th August 20X1. Having processed the oil, the refinery sells its final products in October 20X1 for an average price of $50 per barrel, when the average market price of crude oil is $44 per barrel. Which of the following statements about current replacement cost accounting is/are correct: (i) Replacement cost profit of $150 million is made on the sale. (ii) The capital maintenance adjustment is $90 million. (iii) Cost of sales is $600 million. a. (i) and (iii) b. (i) and (ii) c. (ii) and (iii) d. (i) only e. No statement is correct f. (ii) only g. (iii) only
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A refinery buys 15 million barrels of crude oil at a market price of $40 per barrel on
11th August 20X1. Having processed the oil, the refinery sells its final products in October 20X1 for an average price of $50 per barrel, when the average market price of crude oil is $44 per barrel.
Which of the following statements about current replacement cost accounting is/are correct:
(i) Replacement cost profit of $150 million is made on the sale.
(ii) The capital maintenance adjustment is $90 million.
(iii) Cost of sales is $600 million.
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- Assume that 4,500 units of the halogen light have been produced and sold during the current year. Analysis of the domestic market indicates that 3,600 additional units of the halogen light are expected to be sold during the remainder of the year at the normal product price determined under the total cost concept. Twilight Lumina Company received an offer from Contech Inc. for 1,400 units of the halogen light at $202.50 each. Contech Inc. will market the units in Southeast Asia under its own brand name, and no selling and administrative expenses associated with the sale will be incurred by Twilight Lumina Company. The additional business is not expected to affect the domestic sales of the halogen light, and the additional units could be produced using existing capacity. a. Prepare a differential analysis report of the proposed sale to Contech Inc. $Revenue from sale of additional units Variable costs of additional units Differential income (loss) from accepting offerA manufacturing company leases a building for $100,000 per year for its manufacturing facilities. In addition, the machinery in this building is being paid for in installments of $20,000 per year. Each unit of the product produced costs $15 in labor and $10 in materials. The product can be sold for $40. Use this information to solve, If 10,000 units per year are sold, what is the annual profit? (a) $280,000 (b) $50,000 (c) $150,000 (d) −$50,000 (e) $30,000. Select the closest answer.Currumbin Ltd sells a product for which they have a target profit of $30000. This product has variable costs of $4 per unit and total fixed costs of $45000. If 15000 units are to be sold, what should be the selling price? a. $2 b. $5 c. $3 d. $9 Arnold Company Pty Ltd provided these estimates for the three months ending 30 June 2020, its first period of operation. The beginning cash balance is $1,000. Cash receipts from sales $300 000 Cash payments for expenses 130 000 Payment for the purchase of new motor vehicle 15 000 Depreciation of motor vehicle 15 000 Repayment of a loan 100 000 What is the estimated cash balance at 30 June 2010? a. $55000 deficit b. $40000 surplus c. $56000 surplus d. $155000 surplus e. $50000 surplus Park Ltd produces financial calculators. The production capacity is 35,000 calculators, and the company is currently operating at 80% capacity. Variable…
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- Porter's Paints produces high-end industrial paint primer and sells the primer for $45 per gallon. The company's variable cost is $21.60 per gallon of primer. Annual fixed costs related to the primer are $197,145. Porter expects to sell 18,000 gallons of primer in 2021. What is 2021 expected profit? $618,345 $224,055 $421,200 $810,000On average, PT. ABH would order from PT. GDAM 1.000.000 kg Crude Palm Oil (CPO) every month to be used as the raw materials for its production. This amount of CPO is refined and processed to produce cooking oils. The inventory is depleted each month and needs to be reordered. If the carrying cost is IDR 32.000 and the fixed order cost is IDR 4.000.000 (Assume a 360-day year)a. Does PT. ABH already follows an economically advisable strategy?b. If it is further noted that PT.ABH procurement team takes 10 days to place and receive an order and the firm’s production policy requires it to hold 50.000 kg as safety stock to prevent against stockouts. Determine the reorder point that must be setThe Titan Company provides you with the following information for the current year: Revenues = $2,000,000Cost of goods sold = $750,000 (2/3 of this amount varies with the number of units produced)S&A costs = $200,000 (1/2 of this amount is fixed)Selling price = $40 per unit The company sold 50,000 units of their product in the current year. The company expects unit sales of their product to increase 20% in the next year. Based on the information above, what would be the expected increase to profit before taxes in the coming year?
- Crane Corporation sells a single product for $40. Its management estimates the following revenues and costs for the year 2022: Net sales Direct materials Direct labour Manufacturing overhead-variable Manufacturing overhead-fixed (a) Monthly break-even in units Monthly break-even in dollars Assuming fixed costs and net sales are spread evenly throughout the year, determine Crane's monthly break-even point in units and dollars. (Round answers to O decimal places, e.g. 5,275.) eTextbook and Media Save for Later $410,000 73,800 49,200 Administrative expenses-variable 16,400 Administrative expenses-fixed 24,600 $ Selling expenses-variable Selling expenses-fixed $16,400 16,400 8,200 8,200 units Attempts: 0 of 3 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above.In the year 2022, LOGO Company sells its products at P 1,250 each unit. The company did not increase the unit price for the last 3 years. Unit sold each year is as follows: 2022 — 100 units; 2021 - 80 units; and 2020 60 units. They produce an average of 80 units per year. Variable manufacturing cost is P 200 per unit while variables sales costs is P125 per unit. In addition, LOGO Company incurred P30,000 of fixed overhead and P40,000 fixed selling expenses. The net income reported, under direct costing, of LOGO Company is__. The net income reported, under absorption costing, of LOGO Company is__.Coe Aggregates Ltd has scheduled the production and sale of 35,700 tonnes of aggregates for the Month of April, 2021. Given the following information: Selling prices: $23.15 / tonne Tax rate 30% (of net income) Operating costs Direct material cost: $5.75 /tonne Direct labour cost: $8.05/ tonne Variable overhead costs: $1.56/tonne Fixed overhead cost: $115,820 Selling and Administrative costs Variable: $1.27/tonne Fixed: $28,000 1)Calculate the expected monthly net income after tax (profit) for the month of April 2021 2)Calculate the scheduled production tonnage and sale required to attain a desired net income after tax (profit) of $78,500 for the month of April 2021. PLEASE type or print clearly