Answered step by step
Verified Expert Solution
Question
1 Approved Answer
At the end of September 2016, there were 880 units of a product manufactured by Robinson and Sons Limited. The company has a budgeted capacity
At the end of September 2016, there were 880 units of a product manufactured by Robinson and Sons Limited. The company has a budgeted capacity of 7,000 units and during the month, one unit of the product was sold for $1,500. Production and sales for the month amounted to 6,500 units and 5,800 units respectively. Administrative, selling and production overheads were estimated at $820,000, $780,000 and $910,000 respectively. The following information relating to the product was also extracted from the financial records: Cost per unit Details S Direct materials 250 Direct labour 275 Variable overheads 245 Total 770 Required: a. Determine the amount of stock in store at the start of the month. (1 mark) b. Calculate the full cost per unit of production for September 2016. (1 mark) c. Prepare profit statement for the month using Marginal Costing. (7 marks) d. Determine the contribution to sales ratio. (2 marks) e. Find the break-even point in units and sales revenue. (4 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started