At the end of September 2016, there were 880 units of a product manufactured by Robinson and Sons Limited. The company has a budgeted capacity of 7,000 units and during the month, one unit of the product was sold for $1,500. Production and sales for the month amounted to 6,500 units and 5,800 units respectively. Administrative, selling and production overheads were estimated at $820,000, $780,000 and $910,000 respectively. The following information relating to the product was also extracted from the financial records: Cost per unit Details $ Direct materials 250 Direct labour 275 Variable overheads 2 45 Total 770 Required: Determine the amount of stock in store at the start of the month. Calculate the full cost per unit of production for September 2016. Prepare profit statement for the month using Marginal Costing. Determine the contribution to sales ratio. Find the break-even point in units and sales revenue.

At the end of September 2016, there were 880 units of a product manufactured by Robinson and Sons Limited. The company has a budgeted capacity of 7,000 units and during the month, one unit of the product was sold for $1,500. Production and sales for the month amounted to 6,500 units and 5,800 units respectively. Administrative, selling and production overheads were estimated at $820,000, $780,000 and $910,000 respectively. The following information relating to the product was also extracted from the financial records: Cost per unit Details $ Direct materials 250 Direct labour 275 Variable overheads 2 45 Total 770 Required: Determine the amount of stock in store at the start of the month. Calculate the full cost per unit of production for September 2016. Prepare profit statement for the month using Marginal Costing. Determine the contribution to sales ratio. Find the break-even point in units and sales revenue.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 8PB: Mesa Aquatics, Inc. estimated direct labor hours as 1,900 in quarter 1, 2,000 in quarter 2.2,200 in...

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At the end of September 2016, there were 880 units of a product manufactured by Robinson and Sons Limited. The company has a budgeted capacity of 7,000 units and during the month, one unit of the product was sold for $1,500. Production and sales for the month amounted to 6,500 units and 5,800 units respectively. Administrative, selling and production overheads were estimated at $820,000, $780,000 and $910,000 respectively. The following information relating to the product was also extracted from the financial records: Cost per unit Details $ Direct materials 250 Direct labour 275 Variable overheads 2 45    Total 770 Required: Determine the amount of stock in store at the start of the month.    2.Calculate the full cost per unit of production for September 2016
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