Exhibit 1: Schedule of costs and ging data for starter A . D Budget salestins 1.500 2.000 1.500 Total 7.000 Per unit itin of biscuits) Sales price pertin A 220 C 030 D 020 am 16) (113) (10) na Direct material cocoa imported) Other ingredients Production overhead variable) Production overhead wed) Total production cost pertin 64 012) 003 6141 021 6011 17 na n/a pla Peter Curie, 2014 Non production costs. Leergurte Selling costs including commission Administration costs Interest Expense Total non production costs 025,700 C19.900 646.000 Michael Carroll interjected. "No, I recommend that the sales commission be left alone. We're all in this venture together and icon we're going to have to sell our way out of our problem. We should keep our cling prices intact and we need to retain the incentive to sell as much as we can Everyone agreed, Patrick Carroll, the eldest member of the family who acted as the marketing manager, raised the possibility of maximum sales levels of each product, given that current selling prices were to be maintained due to contracts already sed and said: "We must take into consideration that there is a limit on the amount of goods that we can seliat exsting prices est quarter Michael Carroll accepted that the point was valid. After much discussional family members agreed that the maximum sales value of each product at current prices for the forthcoming quarter would be as follows Product Type A B C D 35.000 63.000 Subsequently everyone at the meeting realed that the shortage of cocoa would restrict production so that the above maximales could not be achieved. Michael Carrol added think we shall have to be more selective in what we produce in future. However, I recommend that we produce a minimum of 1,000 tins of each product during the forthcoming quarter. This would comply with legal agreements which we have already signed for the next quarter and also keep the company's products in the minds of the public. Una, now is the ideal time to put some of that theory of yours into practice. If you feel that there is a single best way to utilize our production facilities in these circumstances now is the deal time to let us know. Everyone agreed and the meeting adjourned Una sighed and reached for her pencil and calculator Requirements 1. Prepare a statement showing the most profitable production plan for Merrion Products Limited for the forthcoming quarter. Prepare an income statement to accompany your recommendation Explain your workings Exhibit 1. Schedule of costs and operating data for quarter, A B D Budget sales (tins) 1.500 2.000 2.000 1.500 Total 7.000 20 B 40 30 D 20 nla C(7) C(16) (13) (10) n/a Per unit (tin of biscuits) Sales price per tin Direct material (cocoa imported) Other ingredients Production overhead (variable) Production overhead (fixed) Total production cost per tin 13) (12) (11) 13 14) 14) 12) 26 (6) (4) 12) 25 (4) C2) 01) n/a n/a n/a n/a enz Peter Clarke, 2014 2 CMAcases Metrion Products Non-production costs.per quarter): Selling costs including commission Administration costs Interest expense Total non-production costs 25,700 19,900 6800 46,400 Michael Carroll interjected. "No, I recommend that the sales commission be left alone. We're all in this venture together and I reckon we're going to have to sell our way out of our problem. We should keep our selling prices intact and we need to retain the incentive to sell as much as we can." Everyone agreed. Patrick Carroll, the eldest member of the family, who acted as the marketing manager, raised the possibility of maximum sales levels of each product, given that current selling prices were to be maintained, due to contracts already signed and said: "We must take into consideration that there is a limit on the amount of goods that we can sell at existing prices next quarter." Michael Carroll accepted that the point was valid. After much discussion all family members agreed that the maximum sales value of each product at current prices for the forthcoming quarter would be as follows: Product type A B D 60,000 88,000 63,000 40,000 Requirements 1. Prepare a statement showing the most profitable production plan for Merrion Products Limited for the forthcoming quarter. Prepare an income statement to accompany your recommendation. Explain your workings. Exhibit 1: Schedule of costs and ging data for starter A . D Budget salestins 1.500 2.000 1.500 Total 7.000 Per unit itin of biscuits) Sales price pertin A 220 C 030 D 020 am 16) (113) (10) na Direct material cocoa imported) Other ingredients Production overhead variable) Production overhead wed) Total production cost pertin 64 012) 003 6141 021 6011 17 na n/a pla Peter Curie, 2014 Non production costs. Leergurte Selling costs including commission Administration costs Interest Expense Total non production costs 025,700 C19.900 646.000 Michael Carroll interjected. "No, I recommend that the sales commission be left alone. We're all in this venture together and icon we're going to have to sell our way out of our problem. We should keep our cling prices intact and we need to retain the incentive to sell as much as we can Everyone agreed, Patrick Carroll, the eldest member of the family who acted as the marketing manager, raised the possibility of maximum sales levels of each product, given that current selling prices were to be maintained due to contracts already sed and said: "We must take into consideration that there is a limit on the amount of goods that we can seliat exsting prices est quarter Michael Carroll accepted that the point was valid. After much discussional family members agreed that the maximum sales value of each product at current prices for the forthcoming quarter would be as follows Product Type A B C D 35.000 63.000 Subsequently everyone at the meeting realed that the shortage of cocoa would restrict production so that the above maximales could not be achieved. Michael Carrol added think we shall have to be more selective in what we produce in future. However, I recommend that we produce a minimum of 1,000 tins of each product during the forthcoming quarter. This would comply with legal agreements which we have already signed for the next quarter and also keep the company's products in the minds of the public. Una, now is the ideal time to put some of that theory of yours into practice. If you feel that there is a single best way to utilize our production facilities in these circumstances now is the deal time to let us know. Everyone agreed and the meeting adjourned Una sighed and reached for her pencil and calculator Requirements 1. Prepare a statement showing the most profitable production plan for Merrion Products Limited for the forthcoming quarter. Prepare an income statement to accompany your recommendation Explain your workings Exhibit 1. Schedule of costs and operating data for quarter, A B D Budget sales (tins) 1.500 2.000 2.000 1.500 Total 7.000 20 B 40 30 D 20 nla C(7) C(16) (13) (10) n/a Per unit (tin of biscuits) Sales price per tin Direct material (cocoa imported) Other ingredients Production overhead (variable) Production overhead (fixed) Total production cost per tin 13) (12) (11) 13 14) 14) 12) 26 (6) (4) 12) 25 (4) C2) 01) n/a n/a n/a n/a enz Peter Clarke, 2014 2 CMAcases Metrion Products Non-production costs.per quarter): Selling costs including commission Administration costs Interest expense Total non-production costs 25,700 19,900 6800 46,400 Michael Carroll interjected. "No, I recommend that the sales commission be left alone. We're all in this venture together and I reckon we're going to have to sell our way out of our problem. We should keep our selling prices intact and we need to retain the incentive to sell as much as we can." Everyone agreed. Patrick Carroll, the eldest member of the family, who acted as the marketing manager, raised the possibility of maximum sales levels of each product, given that current selling prices were to be maintained, due to contracts already signed and said: "We must take into consideration that there is a limit on the amount of goods that we can sell at existing prices next quarter." Michael Carroll accepted that the point was valid. After much discussion all family members agreed that the maximum sales value of each product at current prices for the forthcoming quarter would be as follows: Product type A B D 60,000 88,000 63,000 40,000 Requirements 1. Prepare a statement showing the most profitable production plan for Merrion Products Limited for the forthcoming quarter. Prepare an income statement to accompany your recommendation. Explain your workings