Al-Rafidain Company produces a fax machine, and the device's manufacturing process is part S, and the company estimates that it is for 100,00 units of the fax machine annually. The company can purchase all its needs of the tooth piece from an external supplier at a price of 9 dinars per piece. The company also estimates that there are additional costs in the case of purchase amounting to one dinar per piece, in exchange for shipping and checking the piece. The company can manufacture the part internally, and the following are the estimated costs of the manufacturing process The quantity that the company needs, amounting to 100,000 pieces total costs 400,000 dinars 200,000 200,000 350,000 1,150,000 dinars cost per piece 4 dinars 2 2 3.5 11.5 dinars direct material no saunas direct action Variable indirect industrial costs The share of the industrial costs is fixed the total Assuming that the fixed industrial costs will remain the same in the case of choosing an alternative to purchase from abroad, i.e.)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Al-Rafidain Company produces a fax machine, and the device's manufacturing process is part S, and the company estimates that it is for 100,000
units of the fax machine annually. The company can purchase all its needs of the tooth piece from an external supplier at a price of 9 dinars
per piece. The company also estimates that there are additional costs in the case of purchase amounting to one dinar per piece, in exchange for
shipping and checking the piece. The company can manufacture the part internally, and the following are the estimated costs of the manufacturing process
The quantity that the company needs, amounting to 100,000 pieces
total costs
400,000 dinars
200,000
200,000
350,000
1,150,000 dinars
cost per piece
4 dinars
2
2
3.5
11.5 dinars
direct material
direct action
Variable indirect industrial costs
The share of the industrial costs is fixed
the total
Assuming that the fixed industrial costs will remain the same in the case of choosing an alternative to purchase from abroad, i.e.
no savings in any amount of it, and it is not possible to benefit from that energy in other areas.
Transcribed Image Text:Al-Rafidain Company produces a fax machine, and the device's manufacturing process is part S, and the company estimates that it is for 100,000 units of the fax machine annually. The company can purchase all its needs of the tooth piece from an external supplier at a price of 9 dinars per piece. The company also estimates that there are additional costs in the case of purchase amounting to one dinar per piece, in exchange for shipping and checking the piece. The company can manufacture the part internally, and the following are the estimated costs of the manufacturing process The quantity that the company needs, amounting to 100,000 pieces total costs 400,000 dinars 200,000 200,000 350,000 1,150,000 dinars cost per piece 4 dinars 2 2 3.5 11.5 dinars direct material direct action Variable indirect industrial costs The share of the industrial costs is fixed the total Assuming that the fixed industrial costs will remain the same in the case of choosing an alternative to purchase from abroad, i.e. no savings in any amount of it, and it is not possible to benefit from that energy in other areas.
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