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Calculation of cost per unit of sewing machines under the current costing system: Sewing Easy Ltd Particulars Basic Model Advance Model Amount Amount Direct material costs

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Added on  2021-05-31

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of units 1600 1500 Cost per unit $564.84 $1,025.30 (Refer: Excel Sheet) Working note: 1 Allocation of all indirect costs as per machine hours: Total indirect costs: Particulars Amount Inspection $20,000.00 Assembly $90,000.00 Production Scheduling $ 1,05,000.00 Machine set up $35,000.00 Total $ 2,50,000.00 particulars Basic Model Advance Model Total Machine hours 4600 3400 8000 Allocation: particulars Basic Model Advance Model Indirect Costs allocated $ 1,43,750.00 $1,06,250.00 Q

Calculation of cost per unit of sewing machines under the current costing system: Sewing Easy Ltd Particulars Basic Model Advance Model Amount Amount Direct material costs

   Added on 2021-05-31

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RUNNING HEAD: MANAGEMENT ACCOUNTINGMANAGEMENT ACCOUNTING
Calculation of cost per unit of sewing machines under the current costing system: Sewing Easy Ltd Particulars Basic Model Advance Model Amount Amount Direct material costs_1
MANAGEMENT ACCOUNTING1ContentsSEWING EASY LTD..................................................................................................................................2Q 1.....................................................................................................................................................2Q 2.....................................................................................................................................................3Q 3.....................................................................................................................................................5Q 4.....................................................................................................................................................6Q 5.....................................................................................................................................................6REFERENCES..........................................................................................................................................8
Calculation of cost per unit of sewing machines under the current costing system: Sewing Easy Ltd Particulars Basic Model Advance Model Amount Amount Direct material costs_2
MANAGEMENT ACCOUNTING2SEWING EASY LTDQ 1Calculation of cost per unit of the two models of sewing machines under the current traditional costing system:Sewing Easy LtdParticularsBasic ModelAdvance ModelAmount Amount Direct material costs $ 5,20,000.00 $ 8,40,000.00 Direct labour costs $ 2,40,000.00 $ 3,90,000.00 Indirect costs (see working note 1) $ 1,43,750.00 $ 1,06,250.00 Other operating expenses:Selling and Administration $ - $ 1,40,600.00 Interest expense $ - $ 25,200.00 office rent $ - $ 35,900.00 Total costs $ 9,03,750.00 $ 15,37,950.00 No. of units16001500Cost per unit $ 564.84 $ 1,025.30 (Refer: Excel Sheet)Working note: 1 Allocation of all indirect costs as per machine hours:Total indirect costs:ParticularsAmountInspection $ 20,000.00 Assembly $ 90,000.00 Production Scheduling $ 1,05,000.00 Machine set up $ 35,000.00 Total $ 2,50,000.00 particularsBasic ModelAdvance ModelTotalMachine hours460034008000Allocation:
Calculation of cost per unit of sewing machines under the current costing system: Sewing Easy Ltd Particulars Basic Model Advance Model Amount Amount Direct material costs_3

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