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The multi-producer company ASTER provides for one of its products, product A, the following cost data referring to a quarterly activity: Direct manufacturing costs per

The multi-producer company ASTER provides for one of its products, product A, the following cost data referring to a quarterly activity:

Direct manufacturing costs per unit produced: Raw Material consumption/cost, variable 50 Labor cost, variable 125 Supplies cost, variable 100

Commercial costs per unit sold: Salescommissionperunit 10

Indirect costs/Overheads for the quarter attributed to product "A"

Manufacturing costs, fixed 15.000

Administration costs, fixed 2.500

The above costs are repeated for each quarter of the current financial year.

The company controls its warehouses through a perpetual inventory system and uses the LIFO method in the valuation of inventory issues. At the beginning of the year, there were no stocks of product A.

The manufacturing and sales data for product A for the first three quarters of the current year and its accumulated over the three quarters are as follows:

units 1st quarter 2nd quarter 3rd quarter Accumulated
units produced 240 300 360 900
units sold 200 280 420 900

Product "A" has a sales price of 2.000 per unit which is maintained throughout the current year.

REQUESTED, in relation to product "A":

3. Conclusions obtained for each quarter and their accumulated when relating production and sale with the analytical results (income or loss) of the activity obtained in sections 1 and 2. Numerically justify the differences obtained when comparing the results (income or loss) obtained in the full cost and direct cost systems in each of the periods presented.

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