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- (b) Al Khoud Company is producing Motorcycle parts and is currently in the process of evaluating a specific part named Khoud-11 which cost information is given below. Development costs Selling Price (Local) Ratio of Sales between Muscat & Dubai Monthly Production Cycle Parts produced per cycle Indirect manufacturing costs per cycle OMR41,000 Production Period OMR15.50 Markets 1:2 1 16,000 units Direct production costs per cycle OMR28,600 Delivery charges per cycle 2 years Muscat & Dubai 1:1 OMR10,200 OMR36,500 OMR15,500 Ratio of Sales to Production Setup costs per cycle Assuming that the selling price for Khoud-11 in Muscat is 50% of that in Dubai, calculate both, the estimated life-cycle revenues for the full production period and the life-cycle operating income for the first year only.ASSIGNMENT 1. Enusah Motors Limited assembles and sells motor vehicles. It uses an actual costing system, in which unit costs are calculated on a monthly basis. The selling price per motor vehicle is ¢44,000. Data relating to January, February and March of 2020 are: January February March Unit data: Production (units) Sales (units) 1000 1000 900 900 1040 940 100 60 20 Variable-cost data: Manufacturing costs per unit produced Selling and Admin costs per unit sold ¢16,000 ¢16,000 ¢16,000 8,000 8,000 8,000 Fixed-cost data Manufacturing costs Selling and Admin costs ¢2,400,000 ¢2,400,000 ¢2,400,000 ¢1,600,000 ¢1,600,000 ¢1,600,000 Required: Compute the product cost per unit under both variable and absorption costing methods i. ii. Present income statements for Enusah Motors in January, February and March of 2020 under Variable costing Absorption costing. а. b. iii. Reconcile and explain the differences in operating profits under both costing methods(d) DRS Manufacturing has the following standards for one of its products: [DRS Manufacturing mempunyai standad berikut untuk salah satu produknya:] Table 9: Production Costs [Jadual 9: Kos-kos Pengeluaran] Direct materials (2 meter @ RM5) Direct labor (0.5 hour @ RM10) RM10 RM5 During the most recent year, the following actual results were recorded: [Pada tahun terakhir, hasil sebenar berikut direkodkan:] Table 10: Production Costs [Jadual 10: Kos-kos Pengeluaran] 6,000 units Production Direct materials (11,750 meter purchased and used) RM61,100 Direct labor (2,900 hours) RM29,580 Required: (Dikehendaki:] Interpret the materials price and usage variances. [Tafsirkan varian harga dan penggunaan bahan-bahan.] (ii) Interpret the labor rate and efficiency variances. [Tafsirkan varian kadar buruh dan kecekapan.]
- An organisation manufactures a single product. The following information with regard to the raw material needed in the production process is supplied to you: Normal delivery time: 2.5 weeks Maximum delivery time: 3.5 weeks Normal usage: 52 000 units per year Purchase price per unit: R8.50 Cost of placing an order: R18.00 Interest rate: 2% per year Storing cost per unit: R2.50 a). Calculate the safety stock b). Calculate the lead time c). Calculate the EOQ. d). Calculate the re-order point if the organisation does not keep safety stock. e). Calculate the re-order point if the organisation has a policy to keep safety stock. f). Calculate the safety stock that should be kept by the organisation.An organisation manufactures a single product. The following information with regard to the raw material needed in the production process is supplied to you: Normal delivery time: 2.5 weeks Maximum delivery time: 3.5 weeks Normal usage: 52 000 units per year Purchase price per unit: R8.50 Cost of placing an order: R18.00 Interest rate: 2% per year Storing cost per unit: R2.50 a). Calculate the safety stock b). Calculate the lead timeThe following information was extracted from The Cape Adventures T&T Pvt Ltd. The company manufactures a single product. The particulars for February 2023 are as follows: Units manufactured and sold 18 750. Selling price per unit R 100 Manufacturing cost: – Variable R468 750 – Fixed R187 500 Selling and administrative cost: – Variable selling cost (R5,00 per unit) R 93 750 – Fixed selling cost R 50 000 – Fixed administration cost R 12 500 Required: Draft the statement of comprehensive income for the month ended 28 February 2023 according to the: i. direct costing method ii. absorption costing method.
- Rongon Company manufactures twotypes of product. Selected information is given below:FantasyJoySelling price per unit$25$150Variable expenses per unit$15$35Number of units sold annually20,0005,000Fixed expenses total $480,800 per year. Required: i.Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both dollar and percent columns for each product and for the company as a whole. b. Compute the break-even point in dollars for the company as awhole and the margin of safety in both dollars and percent.ii.The company has developed a new product to be called Delight. Assume that the company could sell 10,000 units at $65each. The variable expenses would be $58each. The company’s fixed expenses would not change. a. Prepare another contribution format income statement, including sales of the Samoan Delight (sales of the other two products would not change). b. Compute the company’s new break-even point in dollars and the new margin…An organisation manufactures a single product. The following information with regard to the raw material needed in the production process is supplied to you: Normal delivery time: 2.5 weeks Maximum delivery time: 3.5 weeks Normal usage: 52 000 units per year Purchase price per unit: R8.50 Cost of placing an order: R18.00 Interest rate: 2% per year Storing cost per unit: R2.50 a). Calculate the lead time demandHightech Sdn Bhd (HSB) produces knee guards for recreational activity, which are marketed throughout Malaysia. Selected cost and operating data relating to the product for two years are given below: Year 2020 Year 2021 Units in beginning inventory 0 ? Units produced during the year 18,000 10,800 Units sold during the year 14,400 14,400 Units in ending inventory 3,600 0 RM Selling price per unit 54 Manufacturing costs: Variable per unit produced: Direct materials 11 Direct labour 6 Variable overhead 5 Fixed per year 162,000 Selling and…
- Using ABC analysis, which of these should be classified as A item/s based "Annual Usage Cost"? Unit Cost ($) Annual Usage (pcs) Remarks 1.50 Item А-101 100,000 50,000 Only 1 source (in Tibet) A-106 200.00 A-112 100.00 2.00 200 A-115 A-119 10,000 will be replaced with new part in 2 months 8.00 500 19.00 1,000 60,000 1,000 A-122 А-125 3.00 A-130 10.00Blue Incorporated manufactures a product with the following cost structure: Price per unit Selling price R12 Production costs: Material R2 Labour R2 Variable overheads R1 Fixed overheads R5 000 Over a three-year period the production and sales of the product are as follows: Y1 Y2 Y3 Production 2 000 1 000 2 000 Sales 1 000 2 000 2 000 Required: 1.1 You are required to produce the Statement of Financial Performance over the three-year period under the absorption costing. 1.2 Evaluate the application of the absorption costing method in profit reporting.The following information pertains to Emy Manufacturing Corporation's Product X: Annual demand 33,750 units Annual cost to hold one unit of inventory P15 Setup cost (or the cost to initiate a production run) P500 Beginning inventory of product X 0 At present, the Company produces 2,250 units of Product X per production runt for a total of 15 production runs per year. The company is considering to use the EOQ model to determine the economic lot size and the number of production runs that will minimize the total inventory carrying cost and setup cost for Product X. 20.If the EOQ model is used, the number of production runs should be a.15 runs. c. 67.5 runs. b.1,500 units. d. 22.5 runs.