management accounting 1B, clear,full answers. need best results plz!

Marks 12 14 Requirement 1.1 Calculate the cost per unit of EnvCart applying absorption costing principles Prepare a profit statement for the year 2020 using: 1.2 1.2.1 Absorption costing format 1.2.2 Marginal costing/Variable costing format Prepare a reconciliation statement to reconcile the profit calculated using 1.3 absorption costing to that calculated using Marginal costing. 1.4 Explain the reasons why these two methods give different profit figures. N.B. Where applicable show all workings. Total 2 2 30 10 2.2 6 7. You many assume that one liter is equivalent to one kilo and that the three products are immediately identifiable at split off. Requirement Marks 2.1 Calculate the total joint costs to be allocated to joint products in May 2020. Calculate the gross profit for each of the three products, using the following methods of allocating joint process costs. 12 2.2.1 physical units methods 2.2.2 Sales value at split off method. Snackers Kitchen has offered to buy the whole output of product CM after further processing into sour cream. The further processing will cost N$60 per kilo. There will be a 10% loss in the process (.e. in further processing) and the sour cream will be sold for N$150 per kilo. The loss incurred in further processing has no scrap value. 2.3.1 Calculate the total profit for product CM if further processing is carried out (You may assume that joint costs are allocated on physical unit 3 basis). 2.3.2 Calculate the minimum selling price for product CM that should be charged if WDP wants to achieve the same profit as calculated in (2.2.1) above (i.e. Same profit when joint costs are allocated on physical units basis). N.B. Where applicable show all workings. Total 2.3 3 34 2020 AAM3692 Assignment questions Assignment 1 Question 1 (30 marks) Namibia Enterprises ("NE") produces and sells office printing cartridges to the Namibian market. They have currently developed a toner cartridge named the EnvCart which is considered to be environmentally friendly as opposed to the other cartridges currently in the market. NE is now planning for the second year production of the EnvCart. The budgeted resource requirement to produce 1 unit of the EnvCart are as follows: Resource Direct Material (Note 1) Direct Labour (Note 2) Manufacturing Overhead (Note 3) Per unit 100g 2 hours 2 hours Notes 1. The manufacture of the EnvCart requires a special powder that is bought from the local market. The suppliers package the powder into 1 kilogram (kilo) bags. Each 1 kilo bag is priced at N$ 1 000 in the local market. 2. The manufacture of the EnvCart requires both skilled and unskilled labour. NE has budgeted to pay on average N$25 per hour in the year. This amount includes both skilled and unskilled labour. The company has several work stations such that it is possible for several units of the EnvCart to be worked on concurrently. 3. The company budgeted that the total manufacturing overheads will amount to N$990 000 based on a planned output of 9 000 units. In the previous year the company budgeted for total manufacturing overheads of N$910 000 when their planned production was 8 000 units. The manufacturing overheads for the current year behaved in a similar way as the previous year. It is company policy to allocate ALL manufacturing overheads based on direct labour hours. 4. The selling price for one EnvCart is forecast at N$350 per unit. 5. The selling and administration expenses were budgeted at N$50 per unit. 6. The actual production and sales for the two year period is as follows: Production units Sales units 2019 9 000 8 500 2020 10 000 9 500 7. The actual production costs, administration costs and selling prices were the same as the budgeted figures for the two years under consideration. Page 10 of 16 Marks 12 14 Requirement 1.1 Calculate the cost per unit of EnvCart applying absorption costing principles Prepare a profit statement for the year 2020 using: 1.2 1.2.1 Absorption costing format 1.2.2 Marginal costing/Variable costing format Prepare a reconciliation statement to reconcile the profit calculated using 1.3 absorption costing to that calculated using Marginal costing. 1.4 Explain the reasons why these two methods give different profit figures. N.B. Where applicable show all workings. Total 2 2 30