Homework Answers
As per policy, only four parts of a question are allowed to answer at a time, so answering 1 to 5 here :
| Exercise 2) | |||||||
| 1 & 2) Product unit cost: | |||||||
| Variable costing | Absorption costing | Calculation | |||||
| DM | 24 | 24 | 960000/40000 | ||||
| DL | 14 | 14 | 560000/40000 | ||||
| VMO | 2 | 2 | 80000/40000 | ||||
| FMO | Not applicable | 20 | 800000/40000 | ||||
| Product Unit Cost | 40 | 60 | |||||
| 3) Under the pull approach, we assume that our sales is our production. | |||||||
| So, under absorption costing, considering the pull approach of costing, | |||||||
| we will allocate the Fixed manufacturing overheads to the sold out units | |||||||
| only. Thus, | |||||||
| Absorption costing | Calculation | ||||||
| DM | 24 | 960000/40000 | |||||
| DL | 14 | 560000/40000 | |||||
| VMO | 2 | 80000/40000 | |||||
| FMO | 22.86 | 800000/35000 | |||||
| Product Unit Cost | 62.86 | ||||||
| 4) Total contribution margin: | |||||||
| Under Variable costing, total contribution margin = Unit sale price - Total manufacturing cost = $80 - $40 = $40 | |||||||
| 5) Gross Margin under absorption costing: It is gap of Total Sales and Cost incurred to create units that are sold. | |||||||
| Gross Margin = (Unit Sale price - Unit manufacturing cost under absorption)* units sold | |||||||
| ($80 - $60) * 35000 = $700000 | |||||||
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Could you please help me to solve this exercise, i know it is
quite long, but please do as much as as you are allowed to do. I
appreciate very much if you can explain in details how the numbers
come from so that I can apply using the way for similar
exercises
Many thanks
) Cost assisgnment Evercise NYz manufactures two products: A and the following per-unit information A rview of the company accounting records revealed per-unit intformation Production...
If you do not know the answer can you please let another tutor
answer it?
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Could you please help me to solve this exercise, I m very
grateful if you can leave the formula of calculation in details so
that I can understand how to solve myself for other similar
exercises
Many thanks
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