Tutorial:1
Solution
- Schedule of cost of goods manufactured for Nani’s Fashion
Nani’s Fashion
| Particular | Amount | Total amount |
| Direct Material | ||
| Beginning raw material inventory,1 january | $20,000 | |
| Add:purchased raw materials | $90,000 | |
| Raw materials available for use | $110,000 | |
| Less: ending raw material inventory,31 december | $12,500 | |
| Total Raw material used | $97,500 | |
| Direct labour | $100,000 | |
| Manufacturing overhead | ||
| Indirect material | $5,000 | |
| Indirect labour | $7,500 | |
| Electricity:plants | $20,000 | |
| Depreciation plant and equipment | $30,000 | |
| Other manufacturing overhead | $40,000 | |
| Total manufacturing overhead | $102,500 | |
| Total manufacturing cost | $300,000 | |
| Add: beginning work in process inventory, 1st January | $20,000 | |
| Sub Total | $320,000 | |
| Less: ending work in process inventory,31 December | $15,000 | |
| Cost of good manufacturing | $305,000 |
B solution
Nina Fashion
Schedule of cost of goods sold for the year of 31 December
| Particular | amount |
| Finished goods inventory, 1 January | $10,000 |
| Add: cost of goods manufacturing | $305,000 |
| Cost of goods available for sale | $315,000 |
| Less: finished goods inventory,31 December | $25,000 |
| Cost of goods sold | $290,000 |
C solution
Income statement of the year ending 31 December
| Particular | amount |
| Sales revenue | $475,000 |
| Less: cost of goods sold | $290,000 |
| Gross profit | $185,000 |
| Less: selling and administrative expenses | $75,000 |
| Profit before taxes | $185,000 |
| Income tax expenses | $45,000 |
| Net profit | $65,000 |
Tutorial 2
week 3
A solution
| Hour | Cost | |
| High activity level | 800 | $4,800 |
| Low activity level | 500 | $3,600 |
| Change | 300 | $1200 |
High- low Methods
Variable cost per cost of electricity hours = Change in cost / change in level of activity
=$ 1200/300 hour = $4 per unit
Now, fixed cost = Highest activity cost – total variable costs
=$4,800 – ($4 * 800)
= $1600
Now, fixed cost = lowest activity cost – total variable costs
=$3,600 – ($4 * 500)
= $1600
Cost function: Y=a + bX
Y= 1600 + 4 X
B solution
Sporting complex’s electricity cost prediction for July
July =570 hour
Using the cost estimation method
Y= $1600 + ($4 * 570 )
Y=$ 3,880
Week4
Tutorial 3
A solution
| Date | particular | Debit | Credit |
| Work in progress Inventory | $5826 | $4850 | |
| To direct material inventory | |||
The post High- low Methods appeared first on My Assignment Online.