OnurDonmez
New member
- Jul 5, 2010
- 1
- 0
- 1
It began operations on 1 January 2008. Costs incurred for 2008 (V stands for variable; F stands for
fixed) are as follows:
Direct materials used costs €280 000 V
Direct manufacturing labour costs 60 000 V
Plant energy costs 10 000 V
Indirect manufacturing labour costs 20 000 V
Indirect manufacturing labour costs 32 000 F
Other indirect manufacturing costs 16 000 V
Other indirect manufacturing costs 48 000 F
Marketing, distribution and customer-service costs 245 700 V
Marketing, distribution and customer-service costs 80 000 F
Administrative costs 100 000 F
Variable manufacturing costs are variable with respect to units produced. Variable marketing,
distribution, and customer-service costs are variable with respect to units sold. Stock
data are as follows:
Opening Closing
1 January 2008 31 December 2008
Direct materials 0 kg 2000 kg
Work in progress 0 units 0 units
Finished goods 0 units ? units
Production in 2008 was 100 000 units. Two kilograms of direct materials are used to make
one unit of finished product.
Revenues in 2008 were €873 600. The selling price per unit and the purchase price per kilogram
of direct materials were stable throughout the year. The company’s ending stock of
finished goods is carried at the average unit manufacturing costs for 2008. Finished goods
stock, at 31 December 2008, was €41940.
Required
1 Direct materials stock, total cost, 31 December 2008.
2 Finished goods stock, total units, 31 December 2008.
3 Selling price per unit 2008.
4 Operating profit 2008.
fixed) are as follows:
Direct materials used costs €280 000 V
Direct manufacturing labour costs 60 000 V
Plant energy costs 10 000 V
Indirect manufacturing labour costs 20 000 V
Indirect manufacturing labour costs 32 000 F
Other indirect manufacturing costs 16 000 V
Other indirect manufacturing costs 48 000 F
Marketing, distribution and customer-service costs 245 700 V
Marketing, distribution and customer-service costs 80 000 F
Administrative costs 100 000 F
Variable manufacturing costs are variable with respect to units produced. Variable marketing,
distribution, and customer-service costs are variable with respect to units sold. Stock
data are as follows:
Opening Closing
1 January 2008 31 December 2008
Direct materials 0 kg 2000 kg
Work in progress 0 units 0 units
Finished goods 0 units ? units
Production in 2008 was 100 000 units. Two kilograms of direct materials are used to make
one unit of finished product.
Revenues in 2008 were €873 600. The selling price per unit and the purchase price per kilogram
of direct materials were stable throughout the year. The company’s ending stock of
finished goods is carried at the average unit manufacturing costs for 2008. Finished goods
stock, at 31 December 2008, was €41940.
Required
1 Direct materials stock, total cost, 31 December 2008.
2 Finished goods stock, total units, 31 December 2008.
3 Selling price per unit 2008.
4 Operating profit 2008.