Question
Question 2 (a) Consider the following costs of Zula Ltd over the relevant range of 5 000 to 2 0000 units produced. Units produced 5
Question 2 (a) Consider the following costs of Zula Ltd over the relevant range of 5 000 to 2 0000 units produced. Units produced 5 000 10 000 15 000 20 000 Variable cost $200 000 ? ? ? Fixed cost $1 800 000 ? ? ? Total ? ? ? ? Cost per unit Variable cost ? ? ? ? Fixed cost ? ? ? ? Total ? ? ? ? Required Complete the above table [13] (b) A company purchased plant and equipment 4 years ago for $100 000. Depreciation is provided using the straight line method over 10 years. The company decided to revalue at the end of the fourth year. The carrying amount was $60 000. The net replacement cost of the plant and equipment was considered to be $75 000 at that date. Required (i) Calculate the gross replacement cost (ii) Calculate accumulated depreciation on gross replacement cost (iii) Calculate the carrying amount [12]
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