Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

XXX Company sells products Laptop, Desktop and Tablet. In 2020 the unit sales price, variable costs, and sales mix of these products were: Required (1)

XXX Company sells products Laptop, Desktop and Tablet. In 2020 the unit sales price, variable costs, and sales mix of these products were:


Presentation2.jpg


Required

(1) Compute Jasmine's break even sales (unitsin 2020Prove your answer                                                                                            

(2) Calculate the sales required to earn a target profit $ 5,600,000 and prove your answer                                                                           

Question 2

XXX Products uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. 

KPN allocates manufacturing overhead costs using direct labour hours as the basis. Austin provides the following information: The direct cost details for Job No. 450 are as follows:

  Information

 Estimated Costs for 2015 ($)

  


Presentation2000.jpg



Total Overheads for the company for the year 2020 has been estimated as below:

  Manufacturing overhead costs                        540,000

  

The total number of direct labour hours estimated to be used by the company for the year 2020 will be 27,000 hours.  Direct labour hours to be used for Job No. 450 will be 8000 hours. 

Required

Compute the total cost of Job 250 using normal costing

Question 3

 Backwoods Incorporated manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be $200 per table, consisting of 70% variable costs and 30% fixed costs. The company has surplus capacity available. It is Backwoods' policy to add a 50% markup to full costs. 

What is the lowest price per unit Backwoods should bid on this long-term order, if company follows cost plus pricing (i.e. full cost + mark-up)?

Question 4

Lata Chemicals Company wants to launch a new product (L2) in the market. The product is still in final stages of design. The company expects 25% margin on selling price. The current market price of the similar product is $ 1800. The production cost of this product (L2) currently comes around $ 1500 per unit. 

Required: Calculate the reduction required in cost to meet the target cost per unit           


Question 5

Ron Chemicals produces four products from a joint process costing $300,000 per month. After leaving the joint process, the products must be further refined before they are salable. You have been provided with the following information:


  

Presentation200.jpg



Required


      1.  Allocate the joint costs using the physical units' method. 

      2.  Allocate the joint costs using the net realizable value method. 
 
 
 


Products Laptop Desktop Tablet Sales Mix Ratio 2 2 1 Selling price per unit $ 1800 $ 1400 $ 1000 Variable Cost per unit $ 1200 $ 1000 Forecast unit sales (units) 8000 units 8000 units $ 200 4000 units Fixed Cost $ 9,000,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Financial and Managerial Accounting

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

11th Edition

9780538480901, 9781111525774, 538480890, 538480904, 1111525773, 978-0538480895

More Books

Students also viewed these Accounting questions

Question

Why is improvement so important in operations management? L025

Answered: 1 week ago