5. Calculate cost of goods for the year wing abopron method 6. Find the net income using absorption method Question 2 Part A Sample question with answer Be Digital company has the capacity of producing 50,000 its cally, Budgeted operating results for 2020 ne gre below on the table Sales (40,000 $281 Variable costs: Manufacturing (40.000 at 54601 Selling (40.000 at $0.95) Admin (40,000 M SI 20) Fixed Cost Manufacturing Selling & administrative 566000 $ 16,000 Show all your working A customer wants to buy 15.000 units at a price of 20 per unit. All fixed cost will decrease by 10. if the special onder is accepted Variable manufacturing costs would increase by 15% perfor the special order only REQUIRED Determine whether the company should produce the special eder or not Social Secking and use the formatorio Part BUY OR MAKE Question Buzz LDT management is making a decision of whether to make a part that is used in the making of a Product or to buy it from an outside supplict. Based on its financial report soms it costs the company 573.00 per unit to make the component. The cost is broken in the following mer s Direct materials 50 000 Direct Laher 38.000 Variable Manufacturing Overhead 2 DOO Fixed Manufacturing Overhead 10,000 Campanyes 2000 components An supplier, John LTD offered to provide the part78.00 Some of the managers believed that they have to consider the proposal because the company may save the cost Question 2 Part A Sample question with answer Bo Digital company has the capacity of producing 50,000 units annually, Budgeted operating results for 2020 are given below on the table Sales (40,000 $28 Variable costs: Manufacturing (40,000 at $4.60) Selling (40,000 at S095) Admin (40,000 a $1.20) Fixed Cost Manufacturing S64,000 Selling & administrative S 16.000 Show all your working A customer wants to buy 15.000 units at a price of S20 per unit All fixed cost will decrease by 10% if the special order is accepted. Variable manufacturing costs would increase by 15% per unit for the special order only REQUIRED Determine whether the company should produce the special order or not Show all working and use the format provided in review Part B BUY OR MAKE Question Buzz LDT management is making a decision of whether to make a part that is used in the making of a Product or to buy it from an outside supplier Based on its financial report, it seems it costs the company S73.00 per unit to make the component. The cost is broken in the following manner s Direct materials 50,000 Direct Labor 58.000 Variable Manufacturing Overhead 28,000 Fixed Manufacturing Overhead 10,000 Company uses 2000 components per your An supplier, John LTD offered to provide the part at $78.00 Some of the managers believed that they have to consider the proposal because the company may save on the cost