Suppose that input to a process is 1,000 units at a cost of K4.5per unit. Normal loss is 10% which is sold at K0.9 per unit andthere are no opening or closing inventories. if actual output were860 unitsPrepare relevant accountsworkings)(show all your(25 Marks)

Step 1: Prepare relevant accounts and working Process Account : Working :…

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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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Consider the information below for a company whose products goes through two processes; material cost of GH¢100000 for a quantity of 10000kg, labour cost- GH¢50000 and overhead cost as twice the cost of labour. The company expected an output of 9500kg from process 1 but eventually obtained 9400kg. The actual output of 9400kg shows thatA. A normal loss of 600kg is incurredB. There is an abnormal gain of 100kgC. There is an abnormal loss of GH¢2632D. Cannot determine without further details
Company XYZ produces and sells 4,000 units.at this level, the company is making a profit of $20,000. Assuming total fixed expenses of $1,000 and variable expenses per unit of $0.75, how much was the selling price per unit? O a. 3 O b. 8 O c. O d. 4 O e. 6 S PAGE NEXT PAGE 14:10 to search A O 40) ENG 15-04-2021 hp art sc delete home end 144 %23 24 & num + backspace 6. 8 lock 7 V 8 A U home 1 48 5 0 enter D G K pause ↑ shift 11 C M end alt ctrl
Answer with formulas and to be very soon
A distributor sells water cooling units for $860 each. The operating profit is 25% on cost and markup is 60% on cost. a. Calculate the cost per cooling unit. Round to the nearest cent b. Calculate the rate of markdown offered during a sale if it made a profit of $51.40 per machine. % Round to two decimal places c. What should be the rate of markdown offered to sell the machines at the cost price? % Round to two decimal places
The selling price of a component is 1.45 Riyal with a material cost of 0.8 Riyal. The cost of the machine used to manufacture the component is15000 Riyals. The present production volume is 22000 units. Determine the breakeven quantity, if the cost of the component is 1.5 Riyal from outside supplier. Due to modification in the component design, the material cost is reduced to 0.70 riyal with additional machine cost of 4000 Riyals and increased production quantity to 30000. Guide the manger to select appropriate product for maximum profit based on profit, break-even analysis and justify the selection
Calculate the breakeven revenue (see Ch 5 p 107) where Total fixed costs are $78,000 and Gross profit is $250,000 and net sales is $375,000
Sales = 7000 units with selling price of OMR 12 per unit, Break-even point = 4000 units, Fixed cost = OMR 15000. What is the amount of Profit? Select one: a. OMR 6000 b. OMR 9750 c. OMR 11250 d. OMR 7250
If this year Eloise Ltd. had sales of $750,000, fixed costs of $150,000, and variable costs of $350,000, what is the margin of safety in dollars?(round numbers within the calculations to 2 decimal places and choose the closest whole number) $400,000 $466,981 $450,000 $425,650
Company XYZ is producing and selling 2,500. At this level, the selling price per unit is $10, the variable expenses per unit is $6, and fixed expenses are $1,500. How much is the profit? а. $6,000 b. $8,500 С. $11,000 d. $16,000 е. $13,500

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Suppose that input to a process is 1,000 units at a cost of K4.5 per unit. Normal loss is 10% which is sold at K0.9 per unit and there are no opening or closing inventories. if actual output were 860 units Prepare relevant accounts workings) (show all your (25 Marks)