FIFO, LIFO and ACM cost accounting are methods used in managing inventory and financial matters involving the amount of money a company has to have tied up within inventory of produced goods, raw materials, parts, components, or feedstocks. They are used to manage assumptions of costs related to inventory, stock repurchases (if purchased at different prices), and various other accounting purposes. Apply AVCO method of inventory valuation on the following information, first in periodic inventory system and then in perpetual inventory system to determine the value of inventory on hand on Mar 31 and cost of goods sold during March. Convert, edit, and e-sign PDF forms. (Total Marks 25) QUESTION 2 Export a PDF Norton Ltd manufacture a single product, which is sold for $136 per unit. the standard variable cost per unit of the product is: Edit a PDF Create a PDF Combine files Organize pages Add comments Request e-signatures Scan \& OCR Protect a PDF Redact a PDF Compress a PDF Prepare a form Convert, edit, and e-sign PDF forms. The company expect to manufacture and sell 8000 units in totak during the forthcoming year (year 1 ). The fixed overhead costs for the forthcoming year are: Required : a) Calculate profit in total for year 1 (5 marks) b) Calculate for the forthcoming year (year 1) i. The breakeven point in dollars and units ii. The margin of safety in dollars and units iii. The amount of sales in units that would earn the company a profit of $180000. (12 marks) c) The following cost incerases are expected in the following year (year 2) - Variable cost +10% - Fixed Cost +8% Reguired: Calculate for year 2 : i. The break-even point in units and dollars using the variable and fixed cost calculated in (c) above. (4 marks) ii. The amount of sales in units to earn the company a profit of $180000 if the selling price was raised to $150. (4 marks) [Total 25 Marks] Export a PDF Edit a PDF Create a PDF Combine files Organize pages Add comments Request e-signatures Scan \& OCR Protect a PDF Redact a PDF Compress a PDF Prepare a form Prepare a form Convert, edit, and e-sign PDF forms. Monitor Ltd is preparing its overhead budgets for forthcoming period. The company has a three production departments A,B and C, and two service departments X and Y. The following figures have been produced: It has been estimated that service department usage is as follow: Required: a) Explain the following terms (4 marks) i) Overhead Allocation ii) Overhead Apportionment b) Prepare a schedule of the overhead costs to be charged to departments A, B, and C, using the repeated distribution method to apportion the service department costs to the production departments (work to the nearest \$). (8 marks) c) Calculate the overhead absorption rates for the period of departments A, B, and C (work to the nearest \$) (6 marks) d) State why hourly rates are generally accepted to be the most appropriate method of overhead absorption, and comment upon the methods of absorption that maybe used. (5 marks) e) State another method of reapportionment that could be used for the reappointment of service department costs across production departments other than repeated distribution. (2 marks) [Total Marks 25] QUESTION 1 A company produce and sell a single product, the standard unit cost details of which are as follow: The total fixed overhead is budgeted at $90,000 per month and absorbed on a rate per a unit basis. - The budgeted output per month is 15,000 units. - The product has a standard selling price of $50 per unit. Combine files Organize pages Add comments Request e-signatures Scan \& OCR Protect a PDF Redact a PDF There is an opening stock on 1 January of 3,000 units. Required: a) Calculate the standard cost and profit for one unit of output. (5 marks) b) Prepare profit statements for each month using. (16 marks) i) Marginal Costing ii) Absorption Costing c) Prepare a statement reconciling the marginal with the absorption profit for each month ( 4 marks) Compress a PDF Prepare a form Convert, edit, and e-sign PDF forms