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Management Accounting

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Added on  2023-06-18

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This article covers topics like fixed cost, sales budget, raw materials purchase budget, economic order quantity, job costing, variable costing and more related to Management Accounting.

Management Accounting

   Added on 2023-06-18

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Management Accounting
Management Accounting_1
Table of Contents
Question 1..............................................................................................................................3
Question 2..............................................................................................................................3
Question 3..............................................................................................................................4
Question 4..............................................................................................................................4
Question 5..............................................................................................................................4
Question 6..............................................................................................................................4
Management Accounting_2
Question 1
Fixed cost = $10200
Sales price = $120
Variable cost = $90 per unit
Contribution margin per unit = 120 – 90 = 30
Break even point in units = Fixed cost / Contribution per unit = 10200 / 30 = 340 unit
Question 2
1.
Sales budget
Forecasted sales units 80000
Sales price per unit 32
Sales for the second quarter of 2021 2560000
2.
Production budget
Sales units 80000
Add: Closing inventory 15000
Less: Opening inventory (5000)
Production units 90000
3.
Raw materials purchase budget
Production 90000
Direct material per unit 4 kg
Direct material needs 360000 kg
Add: Closing inventory 5400
Total needs 365400 kg
Less: Opening inventory (3200) kg
Purchase 362200 kg
Price per kg of metal $4
Direct material purchase budget $1448800
4.
Direct labour budget
Production 90000
Direct labour hour per unit 1.5
Direct labour hour needs 135000
Hourly rate $20
Direct labour budget $2700000
Management Accounting_3

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