Compute the most profitable combination of products, Cost Accounting

Assignment Help:

GZ Inc. manufactures two products that require both machine processing and labor operations. Although there is unlimited demand for both products, GZ could devote all its capacities to a single product. Unit prices, cost data, and processing requirements follow.

Product G Product Z
Unit selling price $70 $230
Unit variable costs $30 $90
Machine hrs. per unit .4 1.4
Labour hrs. per unit 2.0 6.0

Next year, the company will be limited to 160,000 machine hours and 120,000 labor hours. Fixed costs for the year are $1,500,000.

1. Compute the most profitable combination of products to be produced next year.

2. Prepare an income statement using the contribution margin format for the product volume computed in problem 1.

 


Related Discussions:- Compute the most profitable combination of products

Engineering method of cost estimation, Engineering Method of Cost Estimatio...

Engineering Method of Cost Estimation This method is based on a detailed study of each operation whereas careful requirement is made for materials, labour and equipment essent

Determine whether process is under control, Determine whether process is un...

Determine whether process is under control: Hall's refrigeration and heating company is concerned about complaints from their customers about some of their technicia

Reconciliation of profits, Reconciliation of Profits Reconciliation of...

Reconciliation of Profits Reconciliation of profits disclosed by Financial Accounts and Costing Accounts in an interlocking system, While interlocking cost accounting system

Case Study solution , I have a project for cost account and I need the sol...

I have a project for cost account and I need the solution for it

What is a statement of cash flows, 1.What is a Statement of Cash Flows? How...

1.What is a Statement of Cash Flows? How does it differ from an Income Statement? 2.What unique information does the Statement of Cash Flows deliver to investors? Why do they care?

Break even point, Campground Inc. is considering the production and sale of...

Campground Inc. is considering the production and sale of propane lamps. Annual fixed costs associated with the project are expected to total $60,000. In addition, each lamp would

What is emv and eol approach, Adele Weiss manages the campus flower shop. ...

Adele Weiss manages the campus flower shop. Flowers must be ordered three days in advance from her supplier in Mexico. Advance sales are so small that Weiss has no way to estimate

Tax depreciation affect the cash flows statement?, What type of activity co...

What type of activity could a company engage in to improve their cash flows in their Cash Flows Statement? Is this ethical? Could borrowing money make the cash from operations be

Decision making cycle, Decision Making Cycle Steps in decision-making ...

Decision Making Cycle Steps in decision-making cycle are as: a) Clearly define the objective that is to be the focus of the decision. This is significant in order that the

Issuance of stock - shares of common stock, 1. Issuance of stock Prepa...

1. Issuance of stock Prepare journal entries to record the issuance of 100,000 shares of common stock at $20 per share for each of the following independent cases: a. Jacks

Write Your Message!

Captcha
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