The Company Charger Valles, SL is dedicated to the manufacture of chargers for electronic devices. They make
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One USB connector is placed per unit, but for the standard model it is used 3 meters, and for the fast charging model 4.5 meters. In the second phase of production, which is done on another machine, the only difference is the type of charger. The time required for manufacturing machinery for each model is the same. PAC1. What is cost accounting for? Page 3 of 3 The purchase of the machinery in the first phase is amortized on a straight-line basis over 10 years. The purchase price was 950,000 and the cost is distributed in the period according to the units manufactured. The purchase of the second phase machinery is amortized according to production. It is expected that in its entire useful life it can manufacture 6,500,000 units. The purchase price was 1,250,000. For its part, the manufacturing staff had a cost of 48,000 per month. 60% is assigned to the first phase and 40% to the second. In addition, the time required to manufacture the fast charging model in the second phase is 25% more than that of standard charging and must be taken into account to distribute the cost of personnel in this phase, by calculating equivalent units. Apart from manufacturing costs, any company has administration costs, commercial costs and structural costs. As structural costs we understand that they are the maintenance of the warehouse, supplies, IBI (real estate tax). The administration costs for the year have been valued at 47,000 per year, the commercial costs at 68,000 per year and the structural costs are 15,000 per year. A part of the commercial costs are commissions that depend on sales.
1.- Calculate the cost of Raw Materials for each model. (0.5 points)
2.- Calculate the total and unit production cost and the total cost. (1.5 points)
3.- Calculate the unit gross margin for each model. (0.5 points)
4.- Break down the concepts and mark with an X what type of cost it is (Direct / Indirect, Fixed / Variable, Production / Period)? If you think it is necessary, include comments. (1.5 points)
5.- If during the year 5% of the units manufactured have not been sold, what impact would it have on the analytical result? What financial implications would that entail?
Give reasons for your answer, it is not necessary to redo the calculations (1 points)
6.- After analyzing the period and comparing with other years, sales of the fast charging model are falling rapidly.
Based on the cost analysis, what recommendations could be made? Give reasons for your answer (1 points
Related Book For
Business Statistics For Contemporary Decision Making
ISBN: 978-1118749647
8th edition
Authors: Black Ken
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