Question
Management Accounting. Please help answer all ASAP. Thank you. Here is information about Bon-Laits transformation process. Production cost for pasteurization: $250,000. At the point of
Management Accounting. Please help answer all ASAP. Thank you.
- Here is information about Bon-Laits transformation process. Production cost for pasteurization: $250,000. At the point of separation, two products are developed:
milk: 140,000 L;
cream: 75,000 L.
Selling price on the market:
milk: $1.50 per litre;
cream: $2.50 per litre.
By applying additional transformation processes from milk, yogurt is obtained with costs of $20,000 and, from cream, butter is obtained at costs of $30,000.
The selling price on the market:
yogurt: $2 per litre;
butter: $3.50 per litre.
Using the common cost allocation method of market value at the point of separation, what are the common cost amounts allocated for milk and cream? Please choose an answer.
a . Milk: $125,000 and cream: $125,000
b. Milk: $152,075 and cream: $147,925
c. Milk: $162,791 and cream: $87,209
d. Milk: $132,075 and cream: $117,925
2. Here is information about a finishing center. In this workshop, three products require different stages of preparation, namely sanding-polishing, running and shipping.
Activity Costs Incurred Activity Driver Product A Product B
Sandblasting-polishing $6,200 Processed units 150, 200
Bidding $1,200 Number of lots 3 4
Shipping $800 # of shipments 2 3
From the information presented above, calculate the cost per activity driver. Please choose an answer.
a) Sanding-polishing: $17; entry: $171; shipping: $160
b. Sanding-polishing: $31; entry: $300; shipping: $267
c. Sanding-polishing: $41; entry: $400; shipping: $400
d. Sanding-polishing: $17; entry: $3; shipping: $
3. Here is information about a finishing center. In this workshop, two products require different stages of preparation, namely sanding-polishing, running and shipping.
Activity Costs Incurred Activity Driver Product A Product B
Sandblasting-polishing $6,200 Processed units 150, 200
Bidding $1,200 Number of lots 3 4
Shipping $800 # of shipments 2 3
From the information presented above, calculate the cost per unit processed. Please choose an answer.
a. Product A: $6,200; product B: $6,975
b. Product A: $22.50; product B: $18.75
c. Product A: $22; product B: $22
d. Product A: $23.27; product B: $23.54
4. A manufacturing company is producing at 75% capacity. The company manages to sell everything it manufactures. Here is information concerning the 2015 financial year:
sales: $800,000;
fixed fee: $4.50 per unit;
variable fees: $14.50 per unit;
margin on variable costs (MCV): $6 per unit.
What are the unit selling price and total fixed costs? Please choose an answer.
a. Sale price of $10 and total fixed costs of $360,000
b. Selling price of $19 and total fixed costs of $189,473
cs. Sale price of $25 and total fixed costs of $144,000
d. Sale price of $20.50 and total fixed costs of $175,610
5. The Briqueplus company manufactures various products for the construction sector. For products A and B, there are common production costs of $15,000, thus generating 500 pounds of A and 800 pounds of B. From this production process, Briqueplus may incur additional costs in order to obtain two by-products, i.e. A1 and B1. At the point of separation, A could be sold for $8 per pound and B for $15 per pound. The additional costs to produce A1 and B1 are $3,000 and $2,500 respectively. A1 can be sold for $12 per pound and B1 for $18 per pound. Calculate the unit cost of products A1 and B1 according to the market value at the point of separation. Please choose an answer.
a. A1: $8 and B1: $14
b. A1: $2 and B1: $1
c. A1: $11 and B1: $17
d. A1: $12 and B1: $18
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