The data in the table below pertain to Tyre World Company Limited, a manufacturer of tyres Tyre World Company Limited had no beginning inventories in December 2020 Details Amounts Selling price per tyre $100 Variable production overheads per tyre $16 Direct material cost per tyre $20 Direct labour cost per tyre $10 $46 Fixed manufacturing overheads $7 000 000 Fixed operating expenses $1 100 000 Number of tyres produced 1 000 000 Number of tyres sold 770 000 Required a) Determine the closing inventory units as at December 31, 2020 b) Determine the Marginal and Absorption cost per unit of tyre c) Prepare the marginal costing statement for December 2020 d) Prepare the absorption costing statement for December 2020 e) Reconcile the two profits reported in your answer above

The Answer is in the image, click to view ...

Question: The data in the table below pertain to Tyre World Company Limited, a manufacturer of tyres. Tyre World Company Limited had no beginning inventories in

The data in the table below pertain to Tyre World Company Limited, a manufacturer of tyres. Tyre World Company Limited had no beginning inventories in December 2020

Details	Amounts
Selling price per tyre	$100
Variable production overheads per tyre	$16
Direct material cost per tyre	$20
Direct labour cost per tyre	$10
	$46
Fixed manufacturing overheads	$7 000 000
Fixed operating expenses	$1 100 000
Number of tyres produced	1 000 000
Number of tyres sold	770 000

Required:

a) Determine the closing inventory units as at December 31, 2020

b) Determine the Marginal and Absorption cost per unit of tyre.

c) Prepare the marginal costing statement for December 2020.

d) Prepare the absorption costing statement for December 2020.

e) Reconcile the two profits reported in your answer above.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

hello tutors can someone help with question 2 and 3 please? Thank you Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10- K (Mark one) ANNUAL REPORT...

Hi, can someone help with question 2 and 3 please? Thank you Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10- K (Mark one) ANNUAL REPORT PURSUANT TO...

hello tutors can someone help with question 2 and 3 please? Thank you Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10- K (Mark one) ANNUAL REPORT...

Question 1 Happy Lappy Son Bhd (HLSB) is a listed company which manufactures tyres for motor vehicles. It is based in Malaysia, a prosperous, industrialised country. Industry background The...

Cover Page of Form 10-K: 1) What is the date of the fiscal year-end for this report? Auditor's Report: 2) What is the name of the company's independent registered public accounting firm? 3) What is...

Question 1 Happy Lappy Son Bhd (HLSB) is a listed company which manufactures tyres for motor vehicles. It is based in Malaysia, a prosperous, industrialised country. Industry background The...

Please help with the following questions related to the attached financial statements:...

Question 1 Happy Lappy Son Bhd (HLSB) is a listed company which manufactures tyres for motor vehicles. It is based in Malaysia, a prosperous, industrialised country. Industry background The...

John, David and Cathy formed a partnership. Their partnership is called JDC Partnership Pty Ltd. The invested as follows: John: $66,500 David: $95,000 Cathy: $10,000 During the first year of the...

Johnston Information Services, Inc., has two service departments: human resources and billing. Johnstons operating departments, organized according to the special industry each department serves, are...

If a taxpayer s 2 0 2 4 individual income tax return is due on April 1 5 , 2 0 2 5 , and was filed on March 4 , 2 0 2 5 , the statute of limitations would normally run out on: a . March 4 , 2 0 2 8 ....

11.15 Management has stated that it will tolerate one stockout per year. The forecast of annual demand for a particular SKU is 100,000 units, and it is ordered in quantities of 10,000 units. The lead...

1. To provide an understanding that social facts are mentally constructed and do not exist as an objective reality.

7. Give examples of the following when you formulate a social problem or phenomenon: a) When you generalize from reality. b) When you choose something from social reality and do not choose some-thing...

5. Give examples of binary thinking.