Crichton Original case by Xavier Garcia The Australian company Crichton is considering opening a subsidiary in Gratallops (Priorat, Tarragona) in order to facilitate the introduction of its products in our country. It wants to make this introduction to the market in stages, so it will start manufacturing and selling two of its products: Scifi and Scifi2. Initially, it will import much of the components of the products needed for the production of its Australian parent company. For analysis purposes, you will need two groups of components that we will call Far and Scape. The production process is organized in two sections: the section SECI where the group of components Far is prepared to leave them ready for the later elaboration and obtaining of the two products, task that does in the section SEC2, where it incorporates the group of components Scape and according to the combination of these, the product Scifi or Scifi2 is obtained Ending eventos 1. Data relating to the movement of the company's inventories. Beginning Purchases inventory Production Raw material Far 1.000 kg a 2/kg Raw material Scape 20.000 kg a 3/kk Semi-finished product of section SECI S.000 unitats Finished product Scifi 3.000 unitats Finished product Scifiz 1.000 unitats 200 6.000 kg 1.000 unitats 500 unitats 200 unitats 2. Cost allocation. The costs allocated in the different sections of the society, already classified in fixed and variable are those that are synthesized next. Concepts SECI SEC2 COMERC ADMIN Variables 8.400 12.000 30.000 Fixed 20.000 30.000 50.000 20.000 3. Activity on the sections. The SECI section has established as normal activity working a total of 200 hours per period, while the SEC2 section has established its normal activity volume at 160 hours. The actual activity carried out was 150 hours in the SECI section and 128 hours in the SEC2 section of which 96 were for making Scil and 32 for making Scifi2. To manufacture Scifit and Scifi2 products, both need a unit of the semi-finished product in SEC1. but the scz product uses 2 kg more per unit of Scape components than the Scifil product 4. Sales for the period During the period analyzed, the units sold by Sein1 were involced at 64 / unit and the units sold by Scifi at 187.50/unit. Es demana: 1. Calculate income statement under absorption costing 2. Calculate income statement under variable costing 3. Calculate income statement under absorption costing applying the capacity method Crichton Original case by Xavier Garcia The Australian company Crichton is considering opening a subsidiary in Gratallops (Priorat, Tarragona) in order to facilitate the introduction of its products in our country. It wants to make this introduction to the market in stages, so it will start manufacturing and selling two of its products: Scifi and Scifi2. Initially, it will import much of the components of the products needed for the production of its Australian parent company. For analysis purposes, you will need two groups of components that we will call Far and Scape. The production process is organized in two sections: the section SECI where the group of components Far is prepared to leave them ready for the later elaboration and obtaining of the two products, task that does in the section SEC2, where it incorporates the group of components Scape and according to the combination of these, the product Scifi or Scifi2 is obtained Ending eventos 1. Data relating to the movement of the company's inventories. Beginning Purchases inventory Production Raw material Far 1.000 kg a 2/kg Raw material Scape 20.000 kg a 3/kk Semi-finished product of section SECI S.000 unitats Finished product Scifi 3.000 unitats Finished product Scifiz 1.000 unitats 200 6.000 kg 1.000 unitats 500 unitats 200 unitats 2. Cost allocation. The costs allocated in the different sections of the society, already classified in fixed and variable are those that are synthesized next. Concepts SECI SEC2 COMERC ADMIN Variables 8.400 12.000 30.000 Fixed 20.000 30.000 50.000 20.000 3. Activity on the sections. The SECI section has established as normal activity working a total of 200 hours per period, while the SEC2 section has established its normal activity volume at 160 hours. The actual activity carried out was 150 hours in the SECI section and 128 hours in the SEC2 section of which 96 were for making Scil and 32 for making Scifi2. To manufacture Scifit and Scifi2 products, both need a unit of the semi-finished product in SEC1. but the scz product uses 2 kg more per unit of Scape components than the Scifil product 4. Sales for the period During the period analyzed, the units sold by Sein1 were involced at 64 / unit and the units sold by Scifi at 187.50/unit. Es demana: 1. Calculate income statement under absorption costing 2. Calculate income statement under variable costing 3. Calculate income statement under absorption costing applying the capacity method
