Purchase Solution

Managerial Accounting for Cost Producing

Not what you're looking for?

Ask Custom Question

See the attached file.

Required:

(a) Calculate how many bottles of each type were produced in the week with the highest production level and how many bottles of each type were produced in the week with the lowest production levels.

(b) Calculate separately the cost of producing a single unit of each type of bottle when the weekly
production level achieved is:

(i) 12,800 bottles in total

(ii) 16,000 bottles in total.

Calculate the unit costs to four decimal places of a £

(c) Completed bottles are sent to another company for cleaning, labeling and packing. This company employs several part-time personnel to clean, label and pack the bottles. These staff are paid on an incremental piecework basis. The details of the piecework scheme are as follows:

No of bottles prepared and packed Rate paid per bottle
2,001 â?" 2,000 1.6p
2,001 â?" 3,000 1.7p
3,001 â?" 4,000 1.8p

* Note: Only the extra bottles qualify for the higher rates, and any bottles that are broken are deducted from the number of bottles that qualify for piecework.

The figures below refer to the output achieved by three of the employees during a recent week:

Employee A B C
Bottles prepared and packed 2,500 3,200 3,900
Bottles broken 50 150 100

Calculate separately the amount payable to each of employees A, B and C based on the output achieved
above.

Attachments
Purchase this Solution
Solution Summary

Managerial accounting for cost producing is examined in the solution.

Purchase this Solution
Free BrainMass Quizzes
Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

View More Free Quizzes
Related BrainMass Solutions

  • Managerial Accounting Analysis of Concepts

    Managerial accounting and cost accounting go hand in hand, but they are two different things. Cost accounting deals with determining the cost of units produced.

  • different types of reports generated by financial and managerial accounting

    At the highest level, the difference between financial accounting and managerial accounting is that financial accouting deals with producing standard reports for generally external parties (shareholders, investors, regulatory bodies) while managerial

  • Managerial Decisions in competitive markets

    For example a farmer who is producing wheat can also produce rice with the same factors.

  • Communicating information

    Types of accounting information that are important for making decisions: The types of accounting information that are necessary for making decisions are forecasting reports, budgets and cost allocation reports.

  • Sparklin Automotive

    This report is important from the point of view of managers because it helps them compare the cost of producing goods to the cost incurred earlier. In addition, it helps them compare the cost with budgeted costs.

  • internal accounting system

    Accountants prepare reports on the cost of producing goods, expenditures related to employee training programs, and the cost of marketing programs, among other activities.

  • For what values of x is Sharon's profit positive?

    Her cost C (in dollars) for producing x fruitcakes is given by the formula C = 2x + 40. For what values of x is Sharon's profit positive?

  • Fixed and Variable Costs

    On the other side, Managerial Accounting is the accounting for management that renders vital data to the managerial staff for discharging its functions.

  • Financial versus Managerial Accounting

    Managerial accounting includes most of the accountants in major corporations, and the managerial accountants in the smaller businesses that are producing reports with financial and non-financial information not in compliance with GAAP or for use by third

View More Related Solutions