Fundamentals accounting

plz solve it

1

2

Fundamentals accounting

plz solve it

Part 2 - Answer the following questions Question 2 (30 marks) A- AAA Company accumulates the following data concerning a mixed cost, using miles as the activity level Miles Driven Total Cost January 10,000 $15,625 February 8,000 13,500 March 9,000 14,400 April 7,500 12,500 Required: 1. Compute the variable and fixed cost elements using the high-low method 2. If it is estimated that 15,000 miles will be driven in May, what is the expected total cost for May? 3. Explain the various methods used to estimate the variable component and the fixed component of the mixed cost and state which method is the most accurate? Why? (12.5 Marks) B-XYZ Manufacturing Company has fixed costs $240,000, it sells its only product at $50 per unit. For every $1 generated by the sale of their product, they have $0.20 that contributes to fixed costs and profit. Required 1. Calculate the variable cost per unit. 2. Assume that the company plans to sell 20,000 units this year. In your opinion, would the Company be better off with this plan? Support your answer with necessary calculations 3. How many units the company needs to sell to start making profit? Why? Prove your answer. (12.5 marks) C- The calculation of cost of goods sold does not differ between merchandising companies and manufacturing companies. Discuss this statement and support your answer with a numerical examples. (marks) A- ABC Corporation has two divisions-Womes and Men. The do have the following revenues and expenses Wome Me Sales $ 100,000 5 110.000 Variable costs 40,000 57.000 Traceable and costa 30,000 36.000 Allocated common corporate costs 27,000 34.000 Netic Class) $ 3.000 5 (17,000) The management of ABC is considering the elimination of the Men Division Mes De were eliminated, whs traceable fixed costs could be avoided. Totalcommon corporate costs would be unaffected by this decision Required 1- Should the Company drop Men division? Explain in light of the effect of your decide on the company profitability. (Support you answer with the many calculation) 2. Will your decision be changed if you know that all traceable fixed costs to Medicould be avoided and 40% of total common corporate costined to Me division would be acted by this decision Support you are with the necessary calculation) (12) B- ABC Corporation is a manufacturing Company. The following formats of 2021: 1 The company's simple product sells for $8 per unit Budgeted sales for the set for quarters are as follows all sales are os credit: Quarter Quarter 2 Quarter 3 Quarter 4 Budapeted mat sales 40,000 60,000 100,000 50.000 2. Sales are collected in the following patte: 70% in the quarter the sales are made and the 30% in the following quarter. On January 1, 2021, the company's balance sheet showed 575,000 in accounts receivable, all of which will be collected in the first quarter of the year. Bad debts are negligible and can be ignored Regined 1- Prepare the sales budget for the 2021 2. Prepare the expected cash collections schedule for 2021. 3- What is the expected accounts receivable balance on December 31, 2017 (13 mark) C- The following information have been take from a manufacturing company for the year 2020: Sales Teus $74.000 inventory of raw materials; January 1, 2020 5.000 inventory of raw materials; December 31, 2020 6,000 inventory of work in progress; January 1, 2020 $.000 inventory of work in propress, December 31, 2020 7,000 B124 THE Final (VI) Page 4 of 5 Fall 2020/2021 investory of finished goods; January 1 2020 inventory of finished goods; December 31, 2020 Saleses cost of poods produced Trade discount allowed Cash discount allowed Salanes Expense 6,000 4,000 1,500 56,000 2.500 2.000 10,000 Required: Calculate cost of poods sold and press profit for the year ended December 31, 2020 Part 2 - Answer the following questions Question 2 (30 marks) A- AAA Company accumulates the following data concerning a mixed cost, using miles as the activity level. January February March April Miles Driven 10,000 8,000 9,000 7,500 Total Cost $15,625 13,500 14,400 12,500 Required: 1. Compute the variable and fixed cost elements using the high-low method 2. If it is estimated that 15,000 miles will be driven in May, what is the expected total cost for May? 3. Explain the various methods used to estimate the variable component and the fixed component of the mixed cost and state which method is the most accurate? Why? (12.5 Marks) B-XYZ Manufacturing Company has fixed costs $240,000, it sells its only product at SS0 per unit. For every $1 generated by the sale of their product, they have $0.20 that contributes to fixed costs and profit Required: 1. Calculate the variable cost per unit. 2. Assume that the company plans to sell 20,000 units this year. In your opinion, would the Company be better off with this plan? Support your answer with necessary calculations 3. How many units the company needs to sell to start making profit? Why? Prove your answer. (12.5 marks) C- The calculation of cost of goods sold does not differ between merchandising companies and manufacturing companies. Discuss this statement and support your answer with a numerical examples