Question
Task 1: Respond to information request Scenario: Blue Bell Pty Ltd is a growing manufacturing organisation and has appointed you as their Junior Management Accountant
Task 1: Respond to information request
Scenario:
Blue Bell Pty Ltd is a growing manufacturing organisation and has appointed you as their Junior Management Accountant to replace the previous person who left the organisation. One of your initial tasks is to assist the Marketing Manager who is reviewing the current sell price and has requested you provide the following information on the costs of production.
Information to be calculated and provided to the Marketing Manager:
- Direct labour
- Variable conversion cost
- Variable cost of production
- Total cost of production
- Period cost.
The following data has been sourced from recent management reports and is to be used in providing the requested information.
Conversion Cost | $160,000 |
Variable Factory Overhead | $25,000 |
Fixed Factory Overhead | $56,000 |
Prime Cost | $247,000 |
Variable Selling Expenses | $45,000 |
Fixed Selling and Administration Expenses | $135,000 |
Direct materials | $168,000 |
Direct labour | $79,000 |
The previous Junior Management Accountant had commenced preparation of the production table for the Marketing Manager, but the report was left incomplete.
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