12:22 ... 46 X Assignment 13.docx International NBU: Managerial accounting students group only. Assignment based make up exam: Explain the concepts of the following topics, demonstrate the working and solution for cach illustration, detailed working is needed. For concepts and theories explanation question, further marks will be granted if explanation with any suitable examples and illustration for guidance. Process costing illustration: MediSecure, Inc., uses the FIFO method in its process costing system. It produces clear plastic containers for pharmacies in a process that starts in the Molding Department. Data concerning that department's operations in the most recent period appear below: Beginning work in process: Units in process 500 Completion with respect to materials 80% Completion with respect to conversion 40% Units started into production during the month 153.600 Units completed and transferred out ........ 153,700 400 Ending work in process: Units in process.... Completion with respect to materials 75% Completion with respect to conversion 20% Required: Compute the Molding Department's equivalent units of production for materials and conversion Required: Compute the estimated cost per unit for materials and conversion. Required: Explain the main differences in between FIFO and AVCO method. Cost card, illustration: A company operates a normal costing system. A unit of Product "Yool' requires S50 of direct materials and 568 of direct labour Direct labour is paid at the rate of S h ow Production overheads are absorbed at a rate of S12 per direct labour hour and non-production overheads are absorbed at a rate of 60% of Tocal production cost R:What is the total cost of a unit of Product Yeri"? For concepts and theories explanation question, further marks will be granted if explanation with any suitable examples and illustration for guidance. Decision making limiting factor: Illustration Land-will Ltd is manufacturer of Swimming outfit products. The management is now facing insufficient labour capacity for current month production plan, due to the inefficient management arrangement on labour force. The following information is provided: Product Vel Product Sul Selling Price $75/unit $82/unit Variable Product Costs $50/unit S60/unit Demand unit 1,000 units 800 units Material usage/product unit 2kgs/unit 3kgs/unit Labour hour/product unit Shrs/unit 10hrs/unit The labour hour for the month is totaled to 10,500 hrs only. However, the management has decided not to let the customer down with shortage of demand unit, a purchase option of lacking unit is allowed. The supplier has offered $70/unit For Vel and $90/unit for Sul Requirement: -Advice the management for the optimum priority of purchase Prepare the optimum production plan 1260 AC)
