IGCSE/GCSE/O & A Level/IB/University Student Forum
Qualification => GCE AS & A2 Level => Queries => Topic started by: ***exam*** on April 29, 2010, 09:10:13 pm
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i needed help in accounting as level
what is additional profit ?? and how is it calculated ??
paper 2 may/june 08
Q3 part b
how do u solve it i saw the ms but still didnt understand where did values of DM buyin lease ,DW, variable production overhead and variable sales over head come from ???
if i could get an explanation 4 this it wolud be really helpful
:)
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Okay, this whole paper is my hw for the coming Saturday class, so I solved the question. It is easy just give me 20-15 mins because explaining will take time.
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Now additional profit is not a term to study or to know how to calculate. In this question, Aloysius Dixon had a target of producing 10000 tables but the manger produced only 8000 tables. Now the sales will not not turn out like he targeted it to be, therefore he will produce another 2000 tables to reach his target.
They gave us 3 options in which you can produce the missing 2000 tables with and they asked us to calculate how much we will earn or lose when producing those 2000 tables in each option. Therefore it is called "Additional Profit/Loss" for producing the 2000 tables.
1)In the first Option(Buy In) :
You will purchase 2000 tables for 920 each. Meaning 2000*920= $1840000. To calculate the profit/loss we will do the same as the figure produced for the 8000 tables.
First of Sales will be equal to 2 200 000 because you are producing 2000 tables each will be sold for 1100 (read the first 2 sentences again fo the question). Meaning 2000*1100 = $2200000
Now it will look like this:
Sales 2 200 000
Less Buy in, lease, training 1 840 000
Direct materials 0
Direct wages 0
Variable production overhead 0
Variable sales overhead 60 000 >>> why 60000? because it says 50% variable and 50% fixed so the sales overhead amount for the 8000 tables was 480000 for the total, now get the variable 50%*480000. We will calculate for one table so 240000/8000=30 for one table. Now you are producing 2000 tables so 2000*30= 60000
Total variable costs 1 900 000 >>> 1840000+60 000= 1 900 000
Profit = Sales - total varaible costs = 2 200 000- 1 900 000= $300 000
Okay..this is for option 1, same will go for option 2 n 3. Hope you understood anything from what I wrote
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Thankyou thankyou thankyou so much :))))))))) :D
understood the whole thing now :)
best explanation possible ever :) :D
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again help needed :P
paper 2 oct/nov 2007
Q 3 d)
how to calculate production overhead assembly n finishing ??
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I think you mean Q3 b) not d).
Okay now in the question itself,first page they give us the "Direct Labour" for -Assembly and -Finishing for each seat. A labour is a worker thus we pay him wages, so we call that direct wages. To calculate the over head for assembly for direct wages you will just have to multiply the direct wage by the estimated production units of each seat. And to calculate in the finishing department based on machine hours you will find in the first page also they giving you the number of hours for each seat, so you will just multiply by the estimated productions unit.
1)i) Assembly department based on DIRECT WAGES :
Single seat = estimated productions in units * direct labout assembly = 12 000*20 = 240 000
Two-Seat = 10 000*13 = 130 000
Three-Seat = 5000*14 = 70 000
Total = 440 000, to get the unit per labour cost you will use the total you got for assembly which was 127 308 and divide it by the total = 127 308/440 000 = 0.26
ii) Will be the same as part i) but now use the machine hours.
Single-seat = 12000x2
two-seat = 10000x3
three-seat = 5000x4
then continue as part (i)
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hmm u guys r so helpful
hmm i needed help in the brs mcqs i mean can u explain me tht lesson with all term meaning like lodgements uncleared cheques etc i mean those entries plzz
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@mony : m sorry but i meant Q3 d) only i didnt exactly get how to solve the question after getting the prime cost
@ unknown : uncleared cheques are cheques you have written that have not been presented to your bank. For instance, if your bank balance is $100 and you have written a chque for $40 that hasn't gone through yet, your balance really is $60. The $40 hasn't cleared yet, so although your personal cheque register shows a balance of $60, the bank statement says $100 because they haven't paid the $40 cheque yet.
So while you are reconciling your account, you will need to subtract from the bank balance all cheques written that haven't gone through the bank to get your actual balance. That should equal what you have written in your chequebook
and is lodgement there in AS cuz i really haven't heard that word
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hey u r 2 gud i finally understood something in tht lesson hm lodgement word has frequently come in as level pp1 of accounts i shall look fr d ppr n tel u
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oh Thanks :)
hmm k waiting i have never done past pp1 acc so didnt know :P :-[
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YOYOYOO! howw ws acc p2???
accounts!! mine question one balanced YAY. like many people's answers didnt :0
qquestion two- the depr were 10% and 25% you had to calculate the depreciation from the question given.
question 3. what the hell? how did yu guys get the contribution! haha. i dont know how the grades will be put.
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OMG OMG 1 qoes balanced !!! mine didnt
n Q2 i didnt know how 2 solve :'(
3 Q i think i did it k
contri= sp-vc
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Breakeven=fixed cost/(c/s)
Got decimal ans,so i though i waz wrong & messed up da whole q3.. :(
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no its right !!! c/s was 0.35 right ??!!
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Ya ,35%, but i never expected acc 2 hve decimal answers..
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even the ques in which u had 2 find out sales 4 the given profit the answers were in decimals right ??
it does have in many past papers !
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well i got a decimal ans..
X*35%-90000=100000
sales=542857
I think v should round it off,r v might loose marks..
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oh thats how u get it !!!! hmm didnt know that i used unitary method :-\ :-[ :-[ :-[
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hmm srry fr l8 rply
i finaaly found d lodgement q
its in p1 06jun n p1 nov04
hm ya 1 more help hm can u explain me few more things
1.meaning of uncleared bankin
2.standin order shown on bank statement (not in cash book) meaning
sry fr bothering u n thx in advance
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arent u done with acc ???
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nop i hv oct nov session
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2 standing statement : it is something like u give standing orders to ur bank once n for all n every month they specific amount is paid or cut from ur bank acc without informing u !
eg u give a standing order to pay rent for a land = $50
now every month ur bank will pay $50 with out u telling them to , so ur cash book doesn't have that record but ur bank statement has !
hope u get this :)
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1 unclear banking : Checks and drafts that have been deposited by a bank's customer but have not completed the bank's clearing cycle: either they have not been paid by the drawee bank or the proceeds have not been credited to the customer's account. Also called uncollected funds or uncollected items.
hope this is what u are looking 4