PLEASE ANSWER THE FULL QUESTION AS I POSTED SAME LAST TIME AND FULL QUESTION WAS UNFORTUNATELY NOT ANSWERED..THANKS
QUESTION 2 [25 MARKS] Best Ltd is a manufacturer of cleaning materials. It produces 3 types of cleaning materials namely: Clean All, Clean Well and Clean Perfect. The details of the three products for the year ended 30th June 2017 are as follows: - Production/Sales Direct Materials Costs/Liter ($50/Liter) Direct Materials Costs/Liter ($100/hour) Variable Costs/Liter Selling Costs/Liter Fixed Overhead/Liter Clean All (A) 500 125 350 100 1000 115 Clean Well (B) 8000 150 475 150 1400 100 Clean Perfect (C) 10 000 95 295 180 900 90 Required: (a) Calculate total profit/loss for each product and overall profit/loss for the organisation for the year ended 30th June 2017 using a marginal costing approach (Contribution approach). [7 marks] The company has been informed by his supplier of raw materials that there is shortage of raw materials on the world market and as such only 45 000 liters will be made available to the company (b) Required to calculate: (i) The total number of liters of finished goods of each product to be manufactured by the organisation taking into consideration the above information. [9 marks] (i) The total profit/loss for each product and overall profit/loss for the organisation based on your answer of (b) (i). [6 marks] Page 3 of 6 The company has been approached by a customer for a special order of 2000 liters of product B (Clean Well). However, the customer will be ready to pay a price of $1000/liters. (C) Assuming that the company has spare capacity to undertake the order, advise the directors of the company whether or not to accept the order. Your answer should include appropriate calculations. [3 marks] QUESTION 2 [25 MARKS] Best Ltd is a manufacturer of cleaning materials. It produces 3 types of cleaning materials namely: Clean All, Clean Well and Clean Perfect. The details of the three products for the year ended 30th June 2017 are as follows: - Production/Sales Direct Materials Costs/Liter ($50/Liter) Direct Materials Costs/Liter ($100/hour) Variable Costs/Liter Selling Costs/Liter Fixed Overhead/Liter Clean All (A) 500 125 350 100 1000 115 Clean Well (B) 8000 150 475 150 1400 100 Clean Perfect (C) 10 000 95 295 180 900 90 Required: (a) Calculate total profit/loss for each product and overall profit/loss for the organisation for the year ended 30th June 2017 using a marginal costing approach (Contribution approach). [7 marks] The company has been informed by his supplier of raw materials that there is shortage of raw materials on the world market and as such only 45 000 liters will be made available to the company (b) Required to calculate: (i) The total number of liters of finished goods of each product to be manufactured by the organisation taking into consideration the above information. [9 marks] (i) The total profit/loss for each product and overall profit/loss for the organisation based on your answer of (b) (i). [6 marks] Page 3 of 6 The company has been approached by a customer for a special order of 2000 liters of product B (Clean Well). However, the customer will be ready to pay a price of $1000/liters. (C) Assuming that the company has spare capacity to undertake the order, advise the directors of the company whether or not to accept the order. Your answer should include appropriate calculations. [3 marks]
