Answer:
Budgeted purchase for January = $48,000
Explanation:
Opening stock of raw material = 2,000 pounds
Requirement for January = 4,000 units 
2 per unit = 8,000 units
Also provided that inventory upto 25% of next month requirement is to be held, that is for 5,000 units of finished goods 5,000 2 = 10,000 units 25% = 2,500 units, of raw material is required.
Total purchase for January = Closing requirement + Current month requirement - Opening Stock = 2,500 + 8,000 - 2,000 = 8,500 units to be purchased
Total purchase cost = 8,000 units $6 = $48,000
Final Answer
Budgeted purchase for January = $48,000
Answer:
A.Pattern Department 57 per DLH
Cut and Sew Department 78 per DLH
B.Small glove 8.52
Medium glove 10.65
Large glove 12.78
Explanation:
a) Calculation to Determine the two production department factory overhead rates.
Pattern Department = 165,200/2,900
= 56.9 Approximately 57 per DLH
Cut and Sew Department = 273,000/3,500
= 78 per DLH
Therefore two production department factory overhead rates will be :
Pattern Department 57 per DLH
Cut and Sew Department 78 per DLH
b) Calculation of the factory overhead cost per unit
Small glove (57*.04+78*.08)=8.52
Medium glove (57*.05+78*.10)=10.65
Large glove (57*.06+78*.12)=12.78
Therefore the factory overhead per unit for each product will be: Small glove 8.52
Medium glove 10.65
Large glove 12.78
Answer:
The correct answer is letter "B": Often reveal products that were under- or over-costed by traditional costing systems.
Explanation:
Activity-Based Costing or ABC is a managerial accounting method that assigns certain indirect costs to the products incurring the bulk of those costs. ABC is primarily used in the manufacturing sector to make a better calculation of the true cost of production per unit. Compared to the traditional costing method, ABC spots products that could be under-costed or over-costed.
Dumping is exporting goods at prices that are lower than their value.
