Prepare (for each product and in total) the following planned values for December 2021: a. Prime...

  

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Prepare (for each product and in total) the following planned values for December 2021: a. Prime costs b. Total (full) costs of production c. Finished goods closing inventories / cost of sales d. Gross profits (and gross profit margins) Note to task 2: The requirement of task 2 should be established using an absorption costing system (as described in the production process flowchart) The total task 2 mark above, includes marks allocated to short descriptive notes to workings (<=100 words) 11 Marks 14 Marks 7 Marks 3 Marks These notes should be 'short explanatory notes' that will serve to define the terminology used and explain the workings (and results/ outcomes) to a colleague who does not work in the finance office Allerton Ltd - continued: Fixed indirect production overheads: Indirect production overheads are fixed (unaffected by production activity levels) at £25,900 per month. This value has been allocated and apportioned to the 3 production departments as follows: Fixed costs (allocation / apportionment) Bases for absorption: Production department: Machining £10,240 ▪ Machining department = Machine hours ▪ Painting department Direct labour hours = Assembly department = Direct labour hours ▪ Required: Painting £6,300 Assembly £9,360 Total £25,900 Note: The quantity for absorption basis (for each production department) should be established using the total departmental resources requirement shown in the tables above. Allerton Ltd - continued: Trading (production and sales): You should assume that today is Monday 27th March 2023. Sales: The company has the following sales orders to be delivered during March 2023. Order 'MOON' Order / product: Quantity to be delivered (sales in units) Selling price (per unit) Finished goods: Quantity to be produced Production: The production schedule for March 2023 (product quantities and production resources requirement) is shown below. Order / product: Order 'SUN' Order 'MOON' Order 'STAR' Resources requirement for production: Direct costs (variable costs): Order 'SUN' 1,450 Machining department: Incremental materials cost Direct labour hours (total) Machine hours (total) Painting department: Incremental materials cost Direct labour hours (total) Machine hours (total) Note: At 1st March 2023 there will be no opening inventory of finished goods. Assembly department: Incremental materials cost Direct labour hours (total) Machine hours (total) Order product: Order 'SUN' Order 'MOON' 900 £90 £2,460 120 220 £1,360 160 130 800 £1,850 250 80 750 £35 £1,220 160 240 £2,760 140 90 £1,940 270 90 Order 'STAR' 1,600 Order 'STAR' £1,840 100 180 £1,160 120 50 1,100 £70 £1,200 200 100 Totals £5,520 380 hours 640 hours £5,280 420 hours 270 hours £4,990 720 hours 270 hours Prepare (for each product and in total) the following planned values for December 2021: a. Prime costs b. Total (full) costs of production c. Finished goods closing inventories / cost of sales d. Gross profits (and gross profit margins) Note to task 2: The requirement of task 2 should be established using an absorption costing system (as described in the production process flowchart) The total task 2 mark above, includes marks allocated to short descriptive notes to workings (<=100 words) 11 Marks 14 Marks 7 Marks 3 Marks These notes should be 'short explanatory notes' that will serve to define the terminology used and explain the workings (and results/ outcomes) to a colleague who does not work in the finance office Allerton Ltd - continued: Fixed indirect production overheads: Indirect production overheads are fixed (unaffected by production activity levels) at £25,900 per month. This value has been allocated and apportioned to the 3 production departments as follows: Fixed costs (allocation / apportionment) Bases for absorption: Production department: Machining £10,240 ▪ Machining department = Machine hours ▪ Painting department Direct labour hours = Assembly department = Direct labour hours ▪ Required: Painting £6,300 Assembly £9,360 Total £25,900 Note: The quantity for absorption basis (for each production department) should be established using the total departmental resources requirement shown in the tables above. Allerton Ltd - continued: Trading (production and sales): You should assume that today is Monday 27th March 2023. Sales: The company has the following sales orders to be delivered during March 2023. Order 'MOON' Order / product: Quantity to be delivered (sales in units) Selling price (per unit) Finished goods: Quantity to be produced Production: The production schedule for March 2023 (product quantities and production resources requirement) is shown below. Order / product: Order 'SUN' Order 'MOON' Order 'STAR' Resources requirement for production: Direct costs (variable costs): Order 'SUN' 1,450 Machining department: Incremental materials cost Direct labour hours (total) Machine hours (total) Painting department: Incremental materials cost Direct labour hours (total) Machine hours (total) Note: At 1st March 2023 there will be no opening inventory of finished goods. Assembly department: Incremental materials cost Direct labour hours (total) Machine hours (total) Order product: Order 'SUN' Order 'MOON' 900 £90 £2,460 120 220 £1,360 160 130 800 £1,850 250 80 750 £35 £1,220 160 240 £2,760 140 90 £1,940 270 90 Order 'STAR' 1,600 Order 'STAR' £1,840 100 180 £1,160 120 50 1,100 £70 £1,200 200 100 Totals £5,520 380 hours 640 hours £5,280 420 hours 270 hours £4,990 720 hours 270 hours

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I apologize for the confusion Lets use the provided values to answer the questions regarding Allerton Ltd a Prime costs To calculate the prime costs w... View the full answer