What is the cost of the purchases of raw material A

Assignment Help Managerial Accounting
Reference no: EM133119304

Question - Budgeted sales of Z for January are 17,550 units. At the end of the production process for Z, 5% of production units are scrapped as defective. Opening inventories of Z for January are budgeted to be 13,700 units and closing inventories will be 12,300 units. Inventories of finished goods must not be defective.

Each unit of Z requires 4 litres of raw material A and 15% of A input into the process is lost through evaporation. The opening raw materials inventory of A is 12,000 litres but the company wants to reduce this by 20% during January. The cost of raw material A is £5/litre.

The direct labour is paid £12/hr and each unit of 2 requires 4.5 hours of labour. Due to machine breakdowns the labour is idle for 10% of the time.

Required -

(a) What is the cost of the purchases of raw material A during January?

(b) What is the direct labour cost during January?

Reference no: EM133119304

Questions Cloud

Employee benefits required by law and are not negotiated : Social security, unemployment insurance, and workers' compensation are employee benefits required by law and are not negotiated.
Result of job analysis : According to the reading, the company has a financial obligation to its employees. Identify and discuss in detail two things that are a result of job analysis
Emotion delay the negotiation process : Does emotion delay the negotiation process, or prevents parties from reaching an agreement? Why or why not?
What would the entry be on October : If we paid our November rent of $1,000 on October 20th (the month before it was due) what would the entry be on October 20th
What is the cost of the purchases of raw material A : The direct labour is paid £12/hr and each unit of 2 requires 4.5 hours of labour. What is the cost of the purchases of raw material A during January
Differences between the preferences of men and women : Is the preferred pace of life independent of gender? Using a .05 level of significance, what is the p-value and what is your conclusion?
Discusses the healthcare system of country : Discusses the healthcare system of a country that has some form of National Health Insurance.
What amount will Freeflow report as cost of goods sold : Freeflow has averaged 64.5% gross margin. Based on this, what amount will Freeflow report as cost of goods sold
What is the going in cap rate : Given the following information provide an analysis that answers the questions at the end of the assignment.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Why anyone take trouble to study the history of management

Why would anyone take the trouble to study the history of management accounting? Identify the benefits and beneficiaries of such a study, examining critically the work already carried out in this area.

  How your answers would change now that you have gained new

In Module 1, the first required assignment asked you to examine the course and relate it to a current, real-world event or recent news story. Based on what you have learned in this course since Module One, reflect on how your answers would change now..

  Prepare journal entries to record each transaction

Compute Hall's accrued interest as of December 31, 20X1 - Prepare the journal entry to record Brookhaven's payroll tax expense.

  What should be choice of the company

What should be choice of the company given that the applicable tax rate is 50%? Find out the expected EPS under both financing options.

  Which the lowest priority item on the list would be to

Which the lowest priority item on the list would be to? You want to improve your social media ad's click-through rate, so you make a list of all the things you

  Find the average cost will be

$205 per unit and the variable cost is $5 per unit. Assuming a linear cost behavior pattern, if sales double to 50 units the average cost will be

  How would the budget process for the service company differ

Question - This unit has focused on manufacturing companies; How would the budget process for the service company differ from a manufacturing company

  What would the total variance be

The fixed costs were the same as originally budgeted. What would the total variance be if the company used a static budget instead of a flexible budget

  Compare the legislated requirements of territory

who are deployed for active service. Compare the legislated requirements of your province/territory to those of another jurisdiction of your choice.

  Evaluate the minimum price p company should sell one bottle

YOYO has produced 2,000 bottles of perfume. Evaluate the minimum price P the company should sell one bottle of perfume in order to start realizing a net profit?

  Evaluate each company profitability and liquidity

Evaluate each company's profitability, liquidity and solvency. Your discussion should compare both companies to each other and to the industry average

  What is the minimum transfer price

The Restaurant Division will now purchase 5,000 sweatshirts per year from the Gift Division. What is the minimum transfer price

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd