Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

state your answer clearly at top please of your answering page :) City Engineers Ltd has estimated that the cost of running the finished goods

state your answer clearly at top please of your answering page :)

image text in transcribed

City Engineers Ltd has estimated that the cost of running the finished goods stores for next year will be 160,000. This will be the amount allocated to the 'finished goods stores cost pool'. It is estimated that each Product 240L will spend an average of two weeks in the stores before being sold. With Product 360X, the equivalent period is five weeks. Both products are of roughly similar size and have very similar storage needs. It is felt, therefore, that the period spent in the stores ('product weeks') is the cost driver. Next year, it is expected that the business will produce 60,000 Product 240L and 40,000 Product 360X. Calculate the cost to be attached to each unit of: 1. Product 240L 2. Product 360X that will pass through the finished goods store. (Round up your answer to the nearest whole number with two decimal places.) 1. Product 240L = 2. Product 360X =

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Environmental Reporting The Western Approach To Nature

Authors: Leanne J Morrison

1st Edition

0367785455, 9780367785451

More Books

Students also viewed these Accounting questions