Problem 18A factory produces three products L, M and N of equal value from the samemanufacturing process. The costs before the split off point is RO 298,800.The number of units, Subsequent costs and profit percentages are given as under :ParticularsL10000251020%MN12000 16000406081620%10%No. of UnitsSelling Price per unit in ROSubsequent costs per unit in ROEstimated profit on SalesApportion the joint costs by using Reverse Cost Method and find profit Problem 19A company manufactures product A, B and C. The actual joint expensesof manufacture for a period were RO 63,000. It was estimated that profitson each product as a percentage of sales would be 30%, 25% and 15%respectively. Subsequent expenses were:BсAMaterial RO 1000Direct wagesOverheadsRO 2000RO 1500RO 4500RO 60,000RO 750RO 1250RO 1250RO 250RO 3250RO 500TotalSalesRO 40,000RO 25,000Prepare a statement showing the apportionment of joint expenses.RO 750RO 1500

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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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Question 4 Achimota Ltd produces a single product and has the following financial information: Selling Price Cost per unit: Direct Materials Direct Labour Variable Overheads GH¢ 50 15 14 4 Fixed manufacturing overheads are GH¢40,000 per month, production volume is 10,000 units per month and sales is 9,200 units. You are required to: a) Calculate the cost per unit under: i. Absorption costing ii. Marginal costing b) Prepare the income statement of ABC Ltd under: i. Absorption costing technique ii. Marginal costing technique c) Reconcile the profits obtained under (bi) and (bii) d) Explain the reasons for the difference in profits in (c) above.
Problem 1 The company produces four joint products, which have a manufacturing cost of P434,000 at split off point. Data pertaining to these products are as follows: Product Market Value at Split off Units Produced A 20,000 32,000 36,000 24,000 B C D P4.00 1.75 3.00 2.75 Required: Allocate the joint cost using (a) Market value method (b) Average unit cost method
ed - t 0 ances Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product B $ 58.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A $88.00 26.40 26.40 52.80 $ 35.20 40% 12.00 34.40 46.40 $ 11.60 201 Contribution margin per pound of the constraining resource Required 1 C $ 80.00 12.00 44.00 56.00 $ 24.00 The company estimates it can sell 800 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,400 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin the company can earn per month if it makes optimal use of its 5,400 pounds of…
Item 3 Assume a company has two divisions, Division A and Division B. Division A has provided the following information regarding the one product that it manufactures and sells on the outside market: Selling price per unit (on the outside market) $ 75 Variable cost per unit $ 59 Fixed costs per unit (based on capacity) $ 4 Capacity in units 20,000 Division B could use Division A’s product as a component part in the manufacture of 4,000 units of its own newly-designed product. Division B has received a quote of $58 from an outside supplier for a component part that is comparable to the one that Division A makes. If that the company’s divisional managers are evaluated based their division’s profits and Division A is currently selling 20,000 units on the outside market, what is lowest acceptable transfer price for Division A if it were to sell 4,000 units to Division B? Multiple Choice $79 $75 $73 $71
Information about the Harmonious Company's two products includes: Unit selling price Unit variable costs: Manufacturing Selling Total Product X $11.25 Product y $11.25 $5.25 -75 $6.00 $6.75 -75 $7.50 Monthly fixed costs are as follows: Manufacturing Selling and administrative Total $82,500 45,000 $127.500 1. What is the total monthly sales volume in units required to break even when the sales mix in units is 70 percent Product X and 30 percent Product Y? 2. If the sales mix in units is 50 percent Product X and 50 percent Product Y, the monthly break-even total sales dollars is The following data pertain to the three products produced by Beta Corporation: A B C Selling price per unit $6.00 $8.00 $9.00 Variable costs per unit 4.00 Contribution margin per unit $2.00 4.00 $4.00 4.00 $5.00 Fixed costs are $77,000 per month. Twenty percent of all units sold are Product A, fifty-five percent are Product B, and twenty-five percent are Product C. What is the monthly break-even point for total…
Problem 7: How much joint cost is allocated to Product X if joint cost is allocated using the market value method? * SAMCIS Company produces three products (X, Y, and Z) in a joint process costing P100,000. The products can be sold as they leave the process, or they can be processed further and sold. The cost accountant has provided you with the following information: Sales Price After Further Processing Separable Further Processing Costs P60,000 50,000 Sales Price Product Unit Volume at Split-Off P25 30 35\ P10 3,000 4,000 8,000 Y. 15 20 90,000 Assume that all processing costs are variable costs
t 0 ences Mc Graw Hill Required information [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $75 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 46,000 units and sold 42,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense Break even point $ 25 $ 20 The company sold 31,000 units in the East region and 11,000 units in the West region. It determined that $200,000 of its fixed selling and administrative expense is traceable to the West region, $150,000 is traceable to the East region, and the remaining $38,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing…
Problem 2: Joint Cost Allocation Jean Company produces four products, which have a manufacturing cost of P672,000 at the split-off point. Data pertaining to these products follow: Sales Value at Units Weight Factors Product Split-off per unit 36.00 Produced A 20,000 32,000 36,000 24,000 9. 10.50 16.5 18.00 15 18 16.50 Required: Allocate the total joint cost, using: 1. Average unit cost method or Physical output method 2. Market Value method or relative sales value method 3. Weighted Average Method
Question 3 Sunland Manufacturing manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for the production of 3,900 units. The company's Utilities and Maintenance costs are mixed costs. The fixed portions of these costs are $490 and $390, respectively. Calculate the expected costs to be incurred when production is 5,900 units. Use your knowledge of cost behavior to determine which of the other costs are fixed or variable. Costs Incurred Production in Units 3,900 5,900 Type of cost Production Costs a. Direct Materials $ 12,441 $ b. Direct Labor 31,941 c. Utilities 2,596 d. Rent 4,900 e. Indirect Labor 8,931 f. Supervisory Salaries 3,400 g. Maintenance 2,691 h. Depreciation 4,400 MacBook Pro
Total Costs Variable Costs Fixed Costs Total Costs Costs per unit Variable cost per unit Fixed cost per unit 008 S Total cost per unit 0082 $ 60,000 101 150,000 Units produced and sold 80,000 001500 4.50 erinoM nsl 100,000 doa 19A Gigi's Gadgets manufactures and sells a single product. A partially completed schedule of the co total and per unit costs over a relevant range of 60,000 to 100,000 units produced and sold durir given year are listed above. 1. Complete the schedule for the company's total and unit costs above.matul ad quizU 2. Assume that the company sells 90,000 during a year. The selling price is $7.50 per unit. an income statement using the contribution margin format for that year.
Current Attempt in Progress A company manufactures three products using the same production process. The costs incurred up to the split-off point are $208,400. These costs are allocated to the products on the basis of their sales value at the split-off point. The number of units produced, the selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are as follows. Product D E Your answer is partially correct. F (b1) Number of Units Produced Incremental profit (loss) 4,350 5,530 1,900 Product D Selling Price at Split-Off $10.10 $ 11.10 19.20 Selling Price after Processing $15.40 16.40 23.00 Determine the incremental profit (loss) of each product(s). (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Product E Additional Processing Costs $ $16,995 21,509 10,790 Product F $
Problem 8: Compute for the total cost of producing product Y if joint costs are allocated based on the number of units produced. SAMCIS Company produces three products (X, Y, and Z) in a joint process costing P100,000 The products can be sold as they leave the process, or they can be processed further and sold The cost accountant has provided you with the following information: Sales Price Separable Further Sales Price After Further Processing Product Unit Volume at Split-Off Processing Costs 3,000 4,000 8,000 Assume that all processing costs are variable costs. P10 P60,000 50,000 P25 Y. 15 30 20 90,000 35

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