Any expert tutor in management accounting to help me out please and if possible to show me the calculations.. Thank you
Question 2 Ncaute Apparels Limited produces fashionable clothes for all ages through two processes; cutting and assembly materials undergo these processes in cutting and assembly departments. At the beginning of August 2020. the cutting process has opening WIP of 200 units at N$3 102 and its breakdown was: Degree of Completion N$ Materials 100% 4 950 Labour 30% 963 Overheads 20% 2 184 Total 8 102 In August 2020. 1 000 units of materials were added to the cutting process. Due to limitations of the cutting machine, 10% of materials added to the cutting process were expected to become loss with a scrap value of mm per unit It is the company's cost accounting policy to deduct the scrap value of normal losses from the cost of materials in the current process. By end of August, 940 units of finished cutting process were transferred out to the next process: assembly. 100 mits remained in closing WIP and their degrees of completion of individual inputs were: Materials 100% Labour 60% Overheads 40% Costs incurred in August were: Materials N520 700 Labour N$ 5 074 Overheads N510 920 REQUIRED: Prepare the process report for August 2020 using the weighted average method showing the following: 2.1 Quantity statement (inclusive of equivalent units) 2.2 Production cost statement per unit Cost allocation statement Journal entries to record: (i) Raw materials requisitioned by cutting department (ii) Items transferred from cutting department. 2.5 Cutting Process account Question 1 Mayana Limited manufactures a specialised storage accessory for automobiles called 'the Storax', which is a type of pocket which can be easily fixed in the boot of any vehicle. The company has been in operation for two years and, now that the production process has been established and refined, the directors have decided to focus on the income and costs arising from activities. The managing director has recently read an article about product costing and, in particular, absorption and variable costing and is keen to understand how this would affect company profits. The following information is available for the months of July and August: July August Production (units) 13 000 15 000 Sales (units) 12 000 16 000 Direct materials N$29 250 N$33 750 Direct labour N$19 500 N$22 500 Variable production overheads N$7 800 N$9 000 Total selling and administrative expenses N$45 200 N$57 600 Additional information: 1. For Ludo Limited normal production capacity is 15 000 units per month. 2. Fixed production overheads are N$29 400 per month. 3. The company sells 'the Storax' for N$20 each. 4. Total selling and administrative expenses includes a fixed and variable element. The variable portion is N$ 1.55 per unit and is based on units sold. 5. At 30 June the company had no 'Storax' accessories in its warehouse. REQUIREMENT: REQUIRED: 1.1 Prepare profit statements for Mayana Limited for the months of July and August using Absorption costing 1.2 Reconcile the profit between Absorption costing and Variable costing. 1.3 Provide a brief explanation of the effect on profit of using each of the methods at (b) above