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14) The Ambrosia Ltd. is a clothing business that has been highly successful in the past years due to its products quality and competitive selling
14) The Ambrosia Ltd. is a clothing business that has been highly successful in the past years due to its products quality and competitive selling prices. Below, some information about Ambrosia Ltd. is made available to you: Products Number of units sold Selling price per Production volume unit R$ 15 3,000 R$ 50 2,000 T-shirts Dresses 2,400 1,600 Dresses R$ 9 T-shirts Direct raw material cost per R$ 3 unit Direct labor cost per unit R$ 2 Industrial area used 100 m2 Energy 1,200 kWh Number of machine-hours 70h R$ 12 60 m2 1,300 kWh 50h cost or period cost? Costs R$/% Raw material R$ 27,000 Direct labor R$ 30,000 Selling commission (% net 5% revenue) Factory building renting R$ 10,000 (per period) Supervisory salary (per R$ 7,000 period) Factory energy (per period) R$ 3,000 Machinery depreciation R$ 600 manufacturing process (per period) Advertising and marketing R$ 1,200 expenses (per period) General administrative R$ 1,500 expenses (per period) Required: Calculate (a) The unit cost for each product; (b) The gross profit for each product; (c) The gross profit and operating profit for Ambrosia Ltd.; (d) The ending balance for the finished goods inventory
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