Question
The commercial company La Esquina, S.A. requests that expenses be applied according to the traditional method applying the distribution based on units sold with the
The commercial company La Esquina, S.A. requests that expenses be applied according to the traditional method applying the distribution based on units sold with the following information: a) The company has three products "Product A", "Product B" and "Product C" b) The sale price of "Product A" $ 50.00, "Product B" $ 45.00, "Product C" $ 35.00. c) The raw material cost of "Product A" $ 20.00, "Product B" $ 15.00, "Product C" $ 13.00. d) The labor cost of "Product A" $ 12.00, "Product B" $ 15.00, "Product C" $ 10.00. e) Activity one "Product A" 165, "Product B" 56, "Product C" 35.00. f) Activity two "Product A" 14, "Product B" 9, "Product C" 3 g) Activity three "Product A" 18, "Product B" 12, "Product C" 4. h) Total cost per activity "Product A" $ 218,600, "Product B" $ 260,000, "Product C" $ 37,400. i) Units sold "Product A" 28,000, "Product B" 18,000, "Product C" 6,000.
Determine:
1) Total cost of the activities
2) Profitability of "Product B"
3) Total cost of "Product A"
4) Percentage of participation "Product C"
5) Gross Profit
6) Percentage of participation "Product B"
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