13. (Reverse Cost Method): The Progressive Manufacturing Company manufacture one Main Product and two by-products. Data for a month are shown below: Main product Ву-product Ву-product 2$ $ Sales A B 1,50,000 12,000 7,000 Manufacturing Cost : (i) before separation (ii) after separation Administration Cost 75,000 23,000 12,000 2,200 1,500 1,800 1,000 Ratio of Distribution of Selling Cost 85% 10% 5% Net Profit in Sales 20% 15% 10% Assuming no beginning or ending inventories, apportion the joint cost among Main Product the Bv-Product.

13. (Reverse Cost Method): The Progressive Manufacturing Company manufacture one Main Product and two by-products. Data for a month are shown below: Main product Ву-product Ву-product 2$ $ Sales A B 1,50,000 12,000 7,000 Manufacturing Cost : (i) before separation (ii) after separation Administration Cost 75,000 23,000 12,000 2,200 1,500 1,800 1,000 Ratio of Distribution of Selling Cost 85% 10% 5% Net Profit in Sales 20% 15% 10% Assuming no beginning or ending inventories, apportion the joint cost among Main Product the Bv-Product.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

David Manufacturing, which uses the high-low method for estimating cost function, makes a product called Kwan. The company incurs three different manufacturing cost types (A, B, and C) and has a relevant range of operation between 4,000 units and 10,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below. Type A Type B Type C Total 5,000 units $7 $12.60 $4 $23.60 7,500 units $7 $8.40 $3 $18.40 Required: a) Classify each of the costs (A, B, and C) as either fixed or variable or semi-variable b) Write down a linear cost function that expresses the behavior of Shum's total manufacturing cost as a function of # of units produced. c) If Shum produces 10,000 units, what would be the total cost of manufacturing? d) If all fixed costs (or fixed components of costs) decrease by 10% and all variable costs (or variable components of costs) decrease by 10%, what would be the total cost of manufacturing for an activity level of production of 8,000…
The manufacturing costs of Calico Industries for three months of the year are provided below: Total Cost Production (units) April $113,700 281,300 May 80,700 165,900 June 105,000 243,500 Using the high-low method, the variable cost per unit and the total fixed costs are a.$2.90 per unit and $3,212 b.$0.29 per unit and $32,123 c.$0.52 per unit and $16,062 d.$5.22 per unit and $3,212
Menk Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.80 Direct labor $ 3.80 Variable manufacturing overhead $ 2.00 Fixed manufacturing overhead $ 20,200 Sales commissions $ 0.50 Variable administrative expense $ 0.40 Fixed selling and administrative expense $ 10,100 Required: a. If 5,220 units are sold, what is the variable cost per unit sold? Note: Round "Per unit" answer to 2 decimal places. b. If 5,220 units are sold, what is the total amount of variable costs related to the units sold? c. If 5,220 units are produced, what is the total amount of manufacturing overhead cost incurred? a. Variable cost per unit sold b. Total variable costs c. Total manufacturing overhead cost
XYZ, Inc. reports the following information for November: Sales Revenue $800,000 Variable Cost of Goods Sold 110,000 Fixed Cost of Goods Sold 45,000 Variable Selling and Administrative Costs 100,000 Fixed Selling and Administrative Costs 70,000 Calculate the gross profit for November using absorption (traditional) costing. Question 18Select one: A. $ 730,000 B. $690,000 C. $700,000 D. $645,000
Manila Company manufactures one main product and two by-products, A and B. The following are data from the month of May:
Deliveries to the retailers Sh.so 2,400,000 Set-up costs 6,000,000 Purchase order costs 3,600,000 Total overheads 12,000,000 All director labor is paid at $ 5 per hour. The company holds no inventories. Required: a. Calculate the total profit on each of General Motor's three types of products using each of the following methods: 1. The existing method based upon labor hours 2. Activity based costing
A company’s standard product cost is $9 per unit. Actual production costs were $11 per unit. The firm made 20 units and sold 17 units. The firm’s cost of goods sold was Select one: a. $220. b. $187 c. $153 d. $180
2. The following is a standard cost card and other data referring to a manufactured product which sells at R31 per unit: Standard Cost Card Direct materials A, 30 kg @ R0,10 per kg Direct materials B, 12 @ R0,0125 Direct wages, 12 hours @ R5,00 an hour Factory overhead: Fixed 12 hour @ R0,75 an hour Variable 12 hours @ R0,75 an hour Actual output of finished product Sales of finished product There was no work in progress at the beginning or at the end of the period. Budgeted overhead (R27 000 fixed, R27 000 variable) R54 000 Budgeted hours of direct labour 36 000 Budgeted output of finished product Raw material bought and used, A 108 000 kg @ R0,11 kg Raw material bought and used, B 40 600 kg @ R0,02 each Direct wages 41 100 hours @ R5,125 an hour Actual overhead incurred: Per unit R3,00 0,15 60,00 Fixed Variable 9,00 9,00 R81,15 3 000 3 400 3 000 R30 920 R25 000 a. Calculate the price and usage variance of A and B. b. Calculate the rate and efficiency variance of labour. c. Calculate…
The manufacturing costs of Mocha Industries for 3 months of the year are as follows: Total Cost ProductionApril $58,354 1,870 units May $61,504 2,620 June $66,460 3,800 Using the high-low method, determine the (a) variable cost per unit and (b) the total fixed costs. Round "Cost per unit" answer to two decimal places. a. Variable cost per unitb. Total fixed costs
The manufacturing costs of Barretto Enterprises for three months of the year follow: Total Costs Units Produced July $495,000 3,100 units August 551,000 6,600 September 535,000 4,800 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. a. Variable cost per unit $fill in the blank 1 b. Total fixed cost $fill in the blank 2