3. Product X requires 1.8 kg of a raw material per finished unit.
The material has a
weight loss of 10% in preparation for manufacture. Inventory of the material is
currently 420 kg but needs to be increased to 500 kg. 2,000 units of Product X are
to be manufactured.
How many kg of the raw material needs to be purchased to satisfy the above
requirements?
4. Winjl Co uses batch costing and has an order for 300 units which will be made
in a single batch, batch 34A. The following information is available for batch 34A:
Direct materials $15,000
Direct labour 150 hours at $20 per hour
Winjl Co’s budgeted fixed overhead costs for the year are $300,000 based on
20,000 labour hours for the year.
What is the cost per unit for batch 34A?
5. A production worker is paid $11.00 per hour for a basic 35-hour week. Overtime
is paid at 40% over the basic rate. The operative worked for 38 hours in week 9.
Income tax deducted was $76.40 and benefit contribution payments were:
Employer $40
Employee 10% of gross pay
What was the net pay of the worker in week 9?
.
6. The following financial figures relate to Jolly Co for a year
20X2
$
Sales 50,000
Cost of sales (10,000)
Gross profit 40,000
Expenses (15,000)
Net (operating) 25,000
profit
Capital employed 100,000
What is the asset turnover ratio for 20X2?
7. A spreadsheet includes the following pie chart to analyze a company's total
manufacturing cost for a period. The company's production overhead in the
period was $124,700.
A business has the following results:
$
Sales 100,000
Cost of sales (20,000)
Gross profit 80,000
Expenses (30,000)
Net (operating) profit 50,000
What is the net (operating) profit margin for the
business?
8. A differential piecework payment scheme applies to direct workers in a
production cost center, subject to a guaranteed minimum wage of $50 per day.
The differential rates for output each day are:
$
Up to 100 units 0.50 per unit
Excess over 100 units 0.60 per unit
9. A worker produced the following over a three-day period:
Units
Day 1 100
Day 2 90
Day 3 110
10. A manufacturer absorbs production overheads into the cost of jobs as a
percentage of actual direct labour cost. Two jobs were worked on during a
period:
Job 1 ($) Job 2 ($)
Opening work-in-progress 5,269 -
Direct materials in the period 10,726 4,652
Direct labour in the period 4,360 2,940
Production overheads of $9,855 were incurred in the period. Job 2 was
completed in the period.
11. The following indirect costs were incurred in a factory in a period:
Rental of premises $80,000
Utilities $25,000
There are two cost centers, A and B, in the factory which between them occupy
the 20,000 square meters (m2) of floor space (cost center A, 8,000 m2; cost
center B, 12,000 m2).
What is the total indirect cost apportioned to cost center B in the period if floor
space is used as the basis of apportionment?
12. Production labor costs incurred during a period
included the following items:
$
Salary of factory manager 2,400
Training of direct workers 1,660
Normal idle time 840
Overtime premiums of direct workers 2,760
Overtime hours of direct workers at basic rate 9,200
What total amount would usually be charged to
production overhead for the above items?
13. 25,000 units of a company's single product are
produced in a period during which 28,000 units are
sold. Opening inventory was 7,000 units. Unit costs
of the product are:
$ per unit
Direct costs 16.20
Fixed production overhead 7.60
Fixed non-production overhead 2.90
What is the difference in profit between absorption
and marginal costing?