Byron Ltd commenced business on 1 January making one product only. The budgeted cost of one...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Byron Ltd commenced business on 1 January making one product only. The budgeted cost of one unit of the product is as follows: Direct labour Direct material Variable production overhead Fixed production overhead 2018 $ 24 16 6 56 The fixed production overhead figure has been calculated on the basis of a budgeted normal output of 48,000 units per annum. Budgeted fixed expenses are incurred evenly over the year. Selling, distribution and administration expenses are: Fixed Administration expenses $300,000 per annum Variable Selling and Distribution costs 20% of the sales value The selling price per unit is $100 and there was no opening stock at the beginning of January. The actual numbers of units produced and sold were: Production Sales Jan. Feb. units units 3,500 4,000 3,000 4,200 Actual variable costs per unit and fixed costs were as budgeted. The company uses the First-in-first-out approach to value closing stock. Required: a) Prepare profit and loss accounts for each of the months of January and February using the absorption costing approach. (12 marks) b) Prepare profit and loss accounts using marginal costing, showing clearly your calculation of contribution, for each of the months of January and February. Byron Ltd commenced business on 1 January making one product only. The budgeted cost of one unit of the product is as follows: Direct labour Direct material Variable production overhead Fixed production overhead 2018 $ 24 16 6 56 The fixed production overhead figure has been calculated on the basis of a budgeted normal output of 48,000 units per annum. Budgeted fixed expenses are incurred evenly over the year. Selling, distribution and administration expenses are: Fixed Administration expenses $300,000 per annum Variable Selling and Distribution costs 20% of the sales value The selling price per unit is $100 and there was no opening stock at the beginning of January. The actual numbers of units produced and sold were: Production Sales Jan. Feb. units units 3,500 4,000 3,000 4,200 Actual variable costs per unit and fixed costs were as budgeted. The company uses the First-in-first-out approach to value closing stock. Required: a) Prepare profit and loss accounts for each of the months of January and February using the absorption costing approach. (12 marks) b) Prepare profit and loss accounts using marginal costing, showing clearly your calculation of contribution, for each of the months of January and February.
Expert Answer:
Answer rating: 100% (QA)
a Profit and Loss Accounts using Absorption Costing January Sales Revenue 300000 Less Cost of Goods ... View the full answer
Related Book For
Management Accounting
ISBN: 9780077185534
6th Edition
Authors: Will Seal, Carsten Rohde, Ray Garrison, Eric Noreen
Posted Date:
Students also viewed these accounting questions
-
Hi this is from my material management course. Can anyone plz solve this problem. Actual Demand Month 2011 2012 2013 2014 2015 January 503 770 613 701 780 February 700 805 984 1291 1573 March 800 905...
-
master budget case camdrone as part of the continued advancement of technology, a drone camera market has emerged in recent years the drone camera market has been growing as more photography...
-
Calculate Annes remuneration for 15 April 2022. INFORMATION The normal wage of Anne is R200 per hour and her normal working day comprises 9 hours. The standard production time for each employee is 10...
-
On a summer day at Muscat area, the typical average outdoor temperature is 35 degrees Celsius. For the indoor temperature of a house to be kept constant a temperature of 24 degrees Celsius, the rate...
-
The Transportation Security Administration (TSA) examined the possibility of a Registered Traveler program. This program is intended to be a way to shorten security lines for trusted travelers. USA...
-
What is the pH of the solution that results when 0.093 g of Mg(OH)2 is mixed with (a) 75.0 mL of 0.0500 M HCl? (b) 100.0 mL of 0.0500 M HCl? (c) 15.0 mL of 0.0500 M HCl? (d) 30.0 mL of 0.0500 M MgCl2?
-
The computer can automatically generate an employees paycheck. (True/False)
-
Worldwide Publishing completed the following transactions for one subscriber during 2012: Oct 1 Sold a one-year subscription, collecting cash of $2,400, plus sales tax of 9%. Nov 15 Remitted (paid)...
-
Willy Eaconion and hedlunin Exe Exclusion How would you describe the following events, of randomly drawing RED LETTER. cand OR cand with a BLACK NUMBER Independent Odobe
-
Submissions will include a table with the name of the Ratio, the Equation, the calculation for the Current year, the calculation for the Previous year, and then a space allowing the team to interpret...
-
Before planning a marketing campaign, the owner would like to get a better sense of her customer segmentation. Consider what you learned in this week's lecture about the different categories in...
-
This project will be completed in two parts. The instructions and list of daily business transactions are listed in the Google Sheet titled "Project Instructions" link below. All answers should be...
-
What is GDP and why is it important?
-
Explain the law of demand and provide an example.
-
One of the most important contracts that many employees sign is a non-compete agreement. A number of states are restricting what can be contained in a non-compete agreement and putting more limits on...
-
EXAMPLE 4-6 Assume that the office in Example 4-5 is occupied by 70 persons and that a suitably efficient filter was the M-15 filter of Fig. 4-8 and Table 4-3. Using this filter, design a system that...
-
Suppose that the electrical potential at the point (x, y, z) is E(x, y, z) = x + y - 2z. What is the direction of the acceleration at the point (1,3,2)?
-
Identify possible causes for (1) a favorable materials price variance; (2) an unfavorable materials price variance; (3) a favorable materials quantity variance; and (4) an unfavorable materials...
-
Standard cost variances can usually be broken down into two basic types of variances. Identify and describe these two types of variances.
-
Explain the net sales volume variance and list its components.
Study smarter with the SolutionInn App