Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The organizational structure of the activity of the company 'SAVONS DU SUD', specialized in the production and sale of artisanal soaps, is as follows: Production

The organizational structure of the activity of the company 'SAVONS DU SUD', specialized in the production and sale of artisanal soaps, is as follows: Production Department, Commercialization Department, and General Administration Department.Information related to management activity:The company produces two types of soaps: perfumed soaps and natural soaps (non-perfumed). Soaps are made from raw soap blocks. The 'Soap Melting' workshop produces perfumed soaps with lavender and non-perfumed soaps. Perfumed soaps consist of soap and lavender perfume-colorant. Non-perfumed soaps consist of soap and natural colorant.For the month of April, which corresponds to a full month of activity, you have the following information:a) Initial stocks:Raw soap blocks: 2,000 blocks of 1.250 kg at 8 euros per blockLavender perfume-colorant: 200 liters at 50 euros per literNatural colorant: 150 liters at 55 euros per literPerfumed soaps: 7,000 units at 1.50 euros per unitNatural soaps: 5,000 units at 1.65 euros per unitb) Purchases for the month:Raw soap blocks: 5,000 blocks of 1.250 kg at 8.20 euros per blockLavender perfume-colorant: 20 liters at 55 euros per literOutgoing Inventory are measured at the period-end in weighted average unit cost.The production during the period of 15,000 scented soaps and 9,000 natural soaps required the following:SCENTED SOAPS Raw materialsRaw soap bars =1500 barsDye perfumers =16500 mlNatural dye =0Direct Labor =460 hrs at 10 euros/hr NATURAL SOAPS Raw materialsRaw soap bars =900 barsDye perfumers =0Natural dye =10800 mlDirect Labor =280 hrs at 10 euros/hr INDIRECT CHARGES Total indirect charges Gestion personnel(GP)=1880(20% GM,10%.,30% AF,30% M,10% D)Gestion matriel(GM)=800.(10% GP,20% Ap.,40% AF ,20% M ,10% D)Approvision(supply chain)(AP)=840(Purchase amount)Atelier fonte (iron workshop)(AF)=4300(Heure de mod)Moulage(moulding)(M)=2500(NO dunits manufactured)Distribution(D)=5000(turnover)Administration=4000(Cot de production des produits vendus)NOTE: GP AND GM ARE THE CHARGES TO BE REPARTITIONED TO OTHER CHARGESThe raw soap bars are melted in the cast iron workshop and are mixed with lavender perfumer-dye for scented soaps and with natural dye for natural soaps. These products are transferred immediately, without storage to the "moulding" workshop to be transformed into ready-to-sell soaps.(Complicating the exercise??? The manufacture of a scented soap takes 5 minutes in the cast iron workshop and that of a natural soap 6 minutes.)Sales of the month:- Scented soaps: 10,000 units at 3.50 each-Natural soaps: 7,500 units at 4.50 euros eachTASK TO DOYou are asked to calculate the analytical result in full cost according to the analysis center method. To do this, you will need to successively establish:The table of Distribution of Indirect Costs Tablethe stock accounts of raw materials (raw bars of soap, dye-perfumer,natural dye)The Cost of Production Calculation TableFinished goods inventory accountsCalculation of distribution costsThe cost of production and the analytical result by product as well as the net result

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Principles Of Accounting

Authors: Robert Libby, Patricia Libby, Fred Phillips, Stacey Whitecotton

1st Edition

978-0077300456, 0077300459

Students also viewed these Accounting questions