A- The following details relate to ready meals that are prepared by a food processing company:...

A- The following details relate to ready meals that are prepared by a food processing company:

	A $ per meal	B $ per meal
Selling price	50	30
Variable costs	36	18
Fixed costs	5	3
Profit	9	9
Oven time (minutes required per ready meal)	10	4

Required:

Show which ready meal is the most profitable for the company as per contribution per limiting factor? (Per minute). Comment on the results.

B-

AAACompany has estimated the following for the year 2019 for one of its products.

(i) Sales Estimations

	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
Expected Sales (Units)	1,000	1,100	1,200	1,300
Selling Price	$ 25	$ 25	$ 25	$ 25

(ii) Inventory estimations

Beginning inventory for first quarter: 200 units
The company desires to have an ending inventory each quarter equal to 30% of the next quarter’s sales.
The first quarter’s sales for the following year 2020 is expected to be 1,700 units.

Required:

Prepare the Sales Budget andthe Production Budget for 2019.

C-

The following information has been take from a manufacturing company for the year 2019:

Sales revenues 36,000 – opening inventory of materials 10,000 – closing inventory of materials 8,000 – opening inventory of finished goods 6,000 – closing inventory of finished goods 4,000 – cost of goods produced 26,000

Required: calculate Cost of goods sold and gross profit for the year ended December 31, 2019.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

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