Question 1

a) Total Cost: -

= 240, 000 + \$10 5. (20, 000)

= 240, 000 + 200, 000

= 440, 000

One rate: -

= 440, 000 as well as 20, 500

= \$22 per hour

In turn, single-rate budgeted amounts must be: -

Pertaining to Night Lumination Division: --

= (9, 600 5. \$22) / 12

= \$17, six hundred per month

Intended for Flashlight Department: -

sama dengan (5, 4 hundred * \$22) / doze

= \$9, 900 a month

b) Since single charge = \$22 per hour

In turn, single-rate allotted amounts should be: -

For Night Light Division: --

= 700 * \$22

= \$15, 400 for the month of Juner

For Torch Division: --

= 500 * \$22

= \$8, 800 pertaining to the month of June

c) Set rate: -

= 240, 000 as well as 20, 500

= \$12 per hour

Variable rate sama dengan \$10

Subsequently, dual-rate budgeted amount should be: -

Intended for Night Light Division: --

= 12 * being unfaithful, 600 + 10 * 5, four hundred

= 116, 200 + 54, 000

= 169, 200

Additionally , 169, 2 hundred / 12 = \$14, 100 per month

For Flashlight Division: --

= 12 * (700*12) + twelve * (400*12)

= 75, 800 & 48, 500

= 148, 800

In addition , 148, 800 / doze = \$12, 400 a month

d) Seeing that Fixed level = \$22 per hour

And Variable charge = \$10,50

In turn, dual-rate allocated costs should be: -

For Night Light Section: -

= \$12 5. 800 & \$10 2. 700

= 9, six-hundred + several, 000

= \$16, six hundred for the month of June

Pertaining to Flashlight Department: -

sama dengan \$12 5. 450 & \$10 2. 400

sama dengan 5, four hundred + some, 000

= \$9, four hundred per year

e) Since the single-rate cost portion method merely allocates every cost for the cost thing by using same rate of single product. As a result, it will not making virtually any difference between fixed price & changing cost. Yet , the dual-rate allocation method is using distinct cost share base(actual & budgeted) to calculate the costing. So that it is considered an acceptable way for monetary controller in the company.

Query 2

a)

|Product |Board feet |Splitoff Point(per |Sales Value |Percent |Allocated | | | |board feet) | | | | |2 X 4's |6, 000, 000 |\$0. three or more |6, 500, 000 2. 0. 3 = 1, 800, 000|1, 800, 000 / some, 000, 1000 |280, 000 * 45% | | | | | |= 45% |=126, 000 | |2 By 6's |3, 000, 500 |\$0. some |3, 000, 000 5. 0. 4 = 1, 200, 000|1, 200, 1000 / four, 000, 500 |280, 000 * thirty percent | | | | | |= 30% |= 84, 500 | |4 X 4's |2, 500, 000 |\$0. 45 |2, 000, 500 * 0. 45 sama dengan 900, 000 |900, 500 / 4, 000, 500 |280, 1000 * twenty two. 5% | | | | | |= twenty two. 5% |= 63, 1000 | |Slabs |1, 500, 000 |\$0. 1 |1, 000, 1000 * 0. 1 = 100, 000 |100, 000 / some, 000, 1000 |280, 500 * 2 . 5% | | | | | |= installment payments on your 5% |= 7, 1000 | |Total | | |\$4, 000, 000 |100% |\$280, 000

Consequently the value of closing inventory needs to be: -

Pertaining to product a couple of X 4's: -

= (500, 1000 / six, 000, 000) * 126, 000

= \$10, 500

For item 2 By 6's: -

= (250, 000 as well as 3, 000, 000) * 84, 1000

= \$7, 000

Pertaining to product four X 4's: -

sama dengan (100, 000 / a couple of, 000, 000) * 63, 000

= \$3, 150

For Slabs: -

= (50, 500 / one particular, 000, 000) * six, 000

sama dengan \$350

b) It is considered as the extraction technique of ore spending more money than silver. In turn, the completed product will be needed a high costing. Concerning to this issue, Silver Business shall use a joint-costing primarily based accounting method. It is because each finished numerous share the expense of extraction. As a...