{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-26T15:08:43-04:00", "answer_date": "2024-05-26 15:08:43", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1745936", "url": "\/study-help\/questions\/new-ventures-lid-of-mombam-have-organized-a-new-division-1745936", "question_creation_date_js": "2024-05-26T15:08:43-04:00", "question_creation_date": "May 26, 2024 03:08 PM", "meta_title": "[Solved] New Ventures Lid of Mombam have organized | SolutionInn", "meta_description": "Answer of - New Ventures Lid of Mombam have organized a new division to specially coded cellular telephones. The division monthly | SolutionInn", "meta_keywords": "new,ventures,lid,mombam,organized,division,specially,coded,cellular,telephones,monthly,costs", "question_title_h1": " New Ventures Lid of Mombam have organized a new division to specially coded cellular telephones. The division monthly costs are shown Manufacturing costs: Variable", "question_title": " New Ventures Lid of Mombam have organized a new division to", "question_title_for_js_snippet": "New Ventures Lid of Mombam have organized a new division to specially coded cellular telephones The division monthly costs are shown Manufacturing costs Variable costs per units Direct materials Variables manufacturing overhead Fixed manufacturing overhead costs (total) Selling and administration costs Variable Fixed (total) Kshs 48 Kshs 2 Kshs 360,000 12 of sales Kshs 470,000 News ventures Ltd regards all of its workers as full time employees and the company t company includes its labour costs in its fixed manufacturing overhead The cellular phones long standing no lay off policy Furthermore, production is highly automated According for Kshs 150 each During September, the first month of operations, the following activity w recorded Unit produced Units sold 12,000 10,000 1 Required 1 Compute the unit product cost under a) Absorption costing b) Variable costing (3 marks 2 Prepare an absorption costing income statement for September (8 mars 3 Prepare a contribution format income statement for September using costing Assume that the company must obtain additional financing in order to co operations As a member of top management would you prefer to reb statement in (2) above or in (3) above when meeting with a group of prepa investors Reconcile the absorption costing and variables costing net operating in (2) and (3) above Total 25 mark", "question_description": "\"image", "transcribed_text": "New Ventures Lid of Mombam have organized a new division to specially coded cellular telephones. The division monthly costs are shown Manufacturing costs: Variable costs per units: Direct materials Variables manufacturing overhead Fixed manufacturing overhead costs (total) Selling and administration costs: Variable Fixed (total) Kshs.48 Kshs.2 Kshs.360,000 12% of sales Kshs.470,000 News ventures Ltd regards all of its workers as full time employees and the company t company includes its labour costs in its fixed manufacturing overhead. The cellular phones long-standing no lay off policy. Furthermore, production is highly automated. According for Kshs.150 each. During September, the first month of operations, the following activity w recorded: Unit produced Units sold 12,000 10,000 1 Required; 1. Compute the unit product cost under: a) Absorption costing b) Variable costing. (3 marks 2. Prepare an absorption costing income statement for September. (8 mars 3. Prepare a contribution format income statement for September using costing. Assume that the company must obtain additional financing in order to co operations. As a member of top management would you prefer to reb statement in (2) above or in (3) above when meeting with a group of prepa investors? Reconcile the absorption costing and variables costing net operating in! (2) and (3) above. [Total: 25 mark", "related_book": { "title": "Financial Accounting Tools for Business Decision Making", "isbn": "9781118560952, 1118560957, 978-0470239803", "edition": "5th Edition", "authors": "Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/112.jpg", "uri": "\/textbooks\/financial-accounting-tools-for-business-decision-making-5th-edition-112", "see_more_uri": "" }, "free_related_book": { "isbn": "1859841481", "uri": "\/textbooks\/viramma-life-of-an-untouchable-1st-edition-978-1859841488-117968", "name": "Viramma Life Of An Untouchable", "edition": "1st Edition" }, "question_posted": "2024-05-26 15:08:43", "see_more_questions_link": "\/study-help\/questions\/business-human-resource-management-2020-May-22", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/macroeconomics-\/penelope-pundit-an-economics-reporter-states-that-the-european-union-1281660", "description": "Penelope Pundit, an economics reporter, states that the European Union (EU) is increasing its productivity very rapidly in all industries. 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