logo

Management Accounting Assignment (DOC)

7 Pages1266 Words42 Views
   

Added on  2020-02-24

Management Accounting Assignment (DOC)

   Added on 2020-02-24

ShareRelated Documents
Running head: MANAGEMENT ACCOUNTINGManagement accountingName of the studentName of the universityAuthor note
Management Accounting Assignment (DOC)_1
1MANAGEMENT ACCOUNTING Table of Contents(a)Calculation of cost per unit under traditional approach..................................................2(a)Purchase of canister.........................................................................................................2(b)Accepting the special order.............................................................................................3(c)Factors to be be considered before accepting the offer...................................................3(d)Manufacturing of special coffee cup...............................................................................4(e)Factors to be considered while deciding between purchase and manufacture................4Reference....................................................................................................................................6
Management Accounting Assignment (DOC)_2
2MANAGEMENT ACCOUNTING (a)Calculation of cost per unit under traditional approachParticularsAmountPer unit costDirect material $ 300,000.00 $ 0.39 Direct labour $ 180,000.00 $ 0.24 Variable overhead $ 120,000.00 $ 0.16 Fixed overhead $ 540,000.00 Total cost $ 1,140,000.00 Total units production760000Cost per unit $ 1.50 Selling price per unit $ 2.20 Profit per unit $ 0.70 Under traditional approach, the cost per unit of producing the canisters will be $ 0.70(b)Purchase of canisterParticularsAmountDirect material $ 300,000.00 Direct labour $ 180,000.00 Variable overhead $ 120,000.00 Fixed overhead $ 432,000.00 Total cost $ 1,032,000.00 Total units production760000Cost per unit $ 1.36 Supply price per unit $ 1.00 Profit per unit $ (0.36) If the company accepts the offer from Canisters Company for supplying the canisterat $ 1.00 per unit, the Playdough Company has to suffer the loss at $ 0.36 per unit. Therefore,the offer shall not be accepted (Fullerton, Kennedy and Widener 2014). Further, the companyshall manufacture the product rather than purchasing as it will enable the company to earnprofit of $ 0.70 per unit
Management Accounting Assignment (DOC)_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
ACC202 Assignment Management Accounting
|7
|812
|201

Assignment on Calculation of Cost Per Unit
|4
|848
|235

Calculation of the Cost Per Unit
|3
|544
|54

Assignment Management Accounting | Calculation of Costs
|9
|1533
|163

Management Accounting | Questions and Answers
|8
|1747
|194

T217 ACC202 Management Accounting Assignment
|7
|1263
|121