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Only Question 4 needs answering EXTRA POINTS Grillex Manufacturing Company manufactured 100,000 grills in 2019 and reported the following costs: Indirect manufacturing labor AED 300.200
Only Question 4 needs answering
EXTRA POINTS Grillex Manufacturing Company manufactured 100,000 grills in 2019 and reported the following costs: Indirect manufacturing labor AED 300.200 Leasing costs -plant machines AED 200,000 Depreciation plant equipment 95,000 Direct material used 1,355,000 Property taxes plant hall 22,000 Fire insurance plant equipment 34,000 Direct manufacturing labor 1,045,000 Administration costs 740,000 Sales revenue 12,700,000 Salaries of shop assistants 576,000 Work-in-process, 1/1/2019 88,000 Work-in-process, 12/31/2019 64,000 Finished goods, 1/1/2019 320,000 Finished goods, 12/31/2019 1,280,000 Indirect material (material handling, coolants and lubricants) AED 96,000 Required: [a] What are new production costs? [b] What is cost of goods manufactured for 2019? [C] What is cost of goods sold for 2019? [d] Compute the manufacturing cost per unit, the full cost per unit and the average selling price per unit? How much does manager earn per each unit sold? [4] Use the data from the previous exercise. [a] Prepare Income statement emphasizing the gross profit. What is gross profit margin for Helmer Inc? Explain what manager controls through this ratio. [b] Company produces 100,000 units. Assume that only direct material and direct labour are variable costs, calculate how many units must be produced to breakeven. c) To achieve targeted operating income 10 milion AED what revenues must be achieved? [d] what is the Margin of safety at this moment when revenues is 12,700,000 AED/Step by Step Solution
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