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overall profit

FINANCIAL ACCOUNTING
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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Q. 2. AlMaria LLC is a leading manufacturer of Aluminium Products. The company has two divisions Galvanizing and Molding. The output of the Galvanizing division is transferred to the Molding division for further processing and assembling before they are sold to the customer as complete product. The fixed cost of Galvanizing division is RO 45,000 and that of the Molding division is RO 30,000. Verification of the company's records reveals that the variable cost per unit of the product for Galvanizing and Molding are RO 300 and RO 350 respectively. The product variable cost per unit of Galvanizing division is RO 450 and the total output is 250 units which are sold to customer on completion @ RO 2150 per unit. If the Galvanizing division decides to charge its transfers to Molding division at cost plus profit @ 150%. What will be AlMaria LLC's overall profit and the profits of its two divisions? Determination of AIMaria LLC's overall profit and divisional profits Items of expenses and revenue Divisions Total revenue, expenses and income of the company Galvanizing Assembly
Transcribed Image Text:Q. 2. AlMaria LLC is a leading manufacturer of Aluminium Products. The company has two divisions Galvanizing and Molding. The output of the Galvanizing division is transferred to the Molding division for further processing and assembling before they are sold to the customer as complete product. The fixed cost of Galvanizing division is RO 45,000 and that of the Molding division is RO 30,000. Verification of the company's records reveals that the variable cost per unit of the product for Galvanizing and Molding are RO 300 and RO 350 respectively. The product variable cost per unit of Galvanizing division is RO 450 and the total output is 250 units which are sold to customer on completion @ RO 2150 per unit. If the Galvanizing division decides to charge its transfers to Molding division at cost plus profit @ 150%. What will be AlMaria LLC's overall profit and the profits of its two divisions? Determination of AIMaria LLC's overall profit and divisional profits Items of expenses and revenue Divisions Total revenue, expenses and income of the company Galvanizing Assembly
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