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This is complete question.There is no additional information that could be provided with this question. EUROPEIA company produces and markets the product A, using a
This is complete question.There is no additional information that could be provided with this question.
EUROPEIA company produces and markets the product A, using a production process with the following characteristics: The raw material Ml is converted in section I and the intermediate product Al is obtained. The material M2 is added to this intermediate product Al and both are converted in section II. Then the product A is obtained and stored in the finished products warehouse. Regarding March of the year N, the following data are known: a) Costs (in euros) and activity of the sections SI SII SIII SIV 5 800 Direct costs Activity 15 000 10 000 4000 4 000 Lh 3 200 Mh 800 Lh Section III worked 460 Lh for section I, and 340 Lh for section II. The costs of section IV are allocated to the other manufacturing sections according to the respective direct costs; b) Stocks variation bl) Raw materials RM M2 RM MI 120 tons at 52 /ton Opening stocks Purchase Closing stocks 900 tons at 50 /ton 700 tons at 25 /ton 180 tons 100 tons 900 tons at 50 /ton 700 tons at 25 /ton Purchase Closing stocks 180 tons 100 tons b2) Products Opening stocks Production Intermediate product Al 40 Units at 105 /Unit 600 Units Product A 100 Units at 164 /Unit 600 Units. 560 Units. at 240 /Unit Sales ? Consumption Closing stocks 40 Units 140 Units c) Monthly selling (distribution) expenses Variable: 2.5% on the sales value of A Fixed: 15 000 EUROPEIA company uses FIFO as a valuation criterion for the stock outputs. Required (you can use as supporting tables, the file Excel - Part III): : 1. Prepare the table of conversion costs; 2. Prepare the table of production costs; 3. Present the profit and loss statement per functionsStep by Step Solution
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