Outline four limitations of process costing.(Solved)
Outline four limitations of process costing.
Date posted: November 14, 2022. Answers (1)
Explain the following types of costs:
(i) Product cost.
(ii) Opportunity costs.
(iii) Conversion costs.(Solved)
Explain the following types of costs:
(i) Product cost.
(ii) Opportunity costs.
(iii) Conversion costs.
Date posted: November 14, 2022. Answers (1)
Zaea Ltd. Produces two products namely; Z and R. The following information relates to the budget for the year ended 30 June 2022:
...(Solved)
Zaea Ltd. Produces two products namely; Z and R. The following information relates to the budget for the year ended 30 June 2022:
Product Z Product R
Sh. Sh.
Selling price per unit 6 12
Variable cost per unit 2 4
Contribution per unit 4 8
Fixed costs apportioned 100,000 200,000
Units sold (kgs) 70,000 30,000
Required:
(i) Calculate the break-even points for each product.
(ii) The break-even point of product Z to achieve a target profit of sh.60,000.
(iii) The margin of safety of product R.
(iv) The product to produce based on the break-even-point calculated in (b) (i) above.
Date posted: November 14, 2022. Answers (1)
Highlight four causes of labour turnover in an organization.(Solved)
Highlight four causes of labour turnover in an organization.
Date posted: November 14, 2022. Answers (1)
Jikaze Ltd. is currently operating at full capacity and it manufactures and sells brooms for local market.
Currently, the production volume is 100,000 brooms per annum...(Solved)
Jikaze Ltd. is currently operating at full capacity and it manufactures and sells brooms for local market.
Currently, the production volume is 100,000 brooms per annum with the following cost structure:
Sh. "000" Sh. "000"
Sales 20,000
Marginal costs: Labour 8,000
Material 5,000 (13,000)
Contribution 7,000
Fixed costs (3,000)
Net profit 4,000
Additional information:
1. Each broom is currently sold at sh.200
2. An opportunity has arisen to supply 30,000 brooms per annum at sh.180 each.
3. Acceptance of this special order will incur extra costs of sh.80,000 per annum for the hire of additional machinery.
4. Jikaze Ltd. will pay an overtime premium of 20% for the extra direct labour.
Required:
Advise Jikaze Ltd. on whether the offer should be accepted or rejected.
Date posted: November 14, 2022. Answers (1)
Unik Ltd., a leading manufacturer of ceramic tiles is preparing its cost estimation for the master budget. A cost accountant has derived the following data...(Solved)
Unik Ltd., a leading manufacturer of ceramic tiles is preparing its cost estimation for the master budget. A cost accountant has derived the following data on a weekly output of standard size tiles from a factory.
Week output Total overheads
Units "000" Sh. "000"
1 20 60
2 2 25
3 4 26
4 23 66
5 18 49
6 14 48
7 10 35
8 8 18
9 13 40
10 8 33
Where:
∑X= 120 ∑Y= 400 ∑X2= 1,866 ∑Y2= 18,200 ∑XY= 5,704
Required:
(i) Using the least squares regression method, formulate a predictor equation in the form of y = a + bx.
(ii) In week II, the factory planned to produce 25,000 standard size tiles. Estimate the total cost of producing thus quantity.
Date posted: November 14, 2022. Answers (1)
Explain three users of management accounting information(Solved)
Explain three users of management accounting information
Date posted: November 14, 2022. Answers (1)