Paragraph Styles You should assume that today is Monday 23 November 2020, Sales; The company has the following sales orders to be delivered during December 2020, Order / product: Order 1101 Order 1102 Order 1103 Sky "Sun' Moon' Quantity to be delivered (sales in units) 650 950 1,150 Selling price (per unit) 690 635 E55 Production: The production schedule for December 2020 (product quantities and production resources requirement) is shown below. Order / product: Order 1101 Order 1102 Order 1103 "Sky 'Sun' 'Moon' Finished goods: Quantity to be produced 790 1,000 1,320 Note: At 1" December 2020 there will be no opening inventory of finished goods. Resources requirement for production: Direct costs (variable costs): Order / product: Order 1101 Order 1102 *Sky" Order 1103 'Sun' "Moon' Machining department Totals Incremental materials cost E1,440 E720 E1,150 $3,310 Direct labour hours (total) 102 144 72 318 hours Machine hours (total) 186 221 144 551 hours Painting department: Incremental materials cost E864 E1,740 288 E2,892 Direct labour hours (total) 144 114 90 348 hours Machine hours (total) 114 60 30 204 hours Assembly department: Incremental materials cost 1,150 E1,150 E720 E3,020 Direct labour hours (total) 216 258 204 678 hours Machine hours (total) 60 72 102 234 hours D 6 WS Mailings Review View Help AaBbCcD, AaBbCcDI AaBbCcD AaBbCcD Aal E Emphasis 1 Heading 1 1 Normal Strong Su Paragraph Styles Fabien Ltd - continued: Fixed indirect production overheads: Indirect production overheads are fixed (unaffected by production activity levels) at E41,500 per month. This value has been allocated and apportioned to the 3 production departments as follows: Production department: |Machining Painting Assembly Total Fixed costs (allocation / apportionment) E19,400 E8,600 E13,500 E41,500 Bases for absorption: Machining department = Machine hours Painting department = Direct labour hours Assembly department = Direct labour hours Note: The quantity for absorption basis (for each production department) should be established using the total departmental resources requirement shown in the tables above. Required: Task 2: Prepare (for each product and in total) the following planned values for December 2020: a. Prime costs 11 Marks b. Total (full) costs of production 14 Marks C. Finished goods dosing inventories / cost of sales 7 Marks d. Gross profits (and gross profit margins) 3 Marks Note to task 2: The requirement of task 2 should be established using an absorption costing system (as described in the production process flowchart) The total task 2 mark above, includes marks allocated to short descriptive notes to workings (