Reference no: EM132573825

Question 1: Onawa Ltd bottles spring water. the water is filtered in department 1 and then flows through to to department 2 where it is bottled. the quantity schedules of the company are as follows: department 1 opening units 400, units completed and transferred to department2 9200, ending units a process 800 opening units in process in the department are 30%complete. ending units in process in department are 60% complete.

Question 1.1) if the company uses the FIFO method to value closing work in process, the number of equivalent completed units in department 1 will be?

Question 1.2) if the company uses the average method to value closing work in process, the number of equivalent completed units in department 1 will be?

Question 2: A company has three departments , brunch, lunch and dinner, results for the trading departments for the year ending 30 june 2020 are as follow: brunch: sales $21000, cost of goods sold $6300, other costs $13025, profit/loss $1675, average inventory held 1475 and target inventory turn 4 times lunch: sales $11250, cost of goods sold $3750, other costs $8250, profit/loss ($750), average inventory held 950 and target inventory turn 3 times dinner:

sales $44000,

cost of goods sold $17600,

other costs $11470,

profit/loss $14930,

average inventory held 2550 and target inventory turn 5 times the costs in the financial year are made up as follows:

sales staff salaries $6644,

number of employees 12

consultation staff salaries $2496,

number of employees 4

warehouse staff wages $3055,

number of employees 6 administrative staff salaries $3050,

number of employees 4 general overheads (electricity, rates,etc) $17500

salaries, wages, and general overheads are considered to be of a fixed nature, except for 30% of general overheads which vary with the total costs of sales.

the company has collected the following information for the financial year: brunch: number of items sold 1000, customer purchase orders 1000, floor area (square metres) 16400, number of consultations 798 lunch: number of items sold 1500, customer purchase orders 900, floor area (square metres) 10000, number of consultations 200 dinner: number of items sold 4000, customers purchase orders 2500, floor area (square metres)14400, number of consultations 250 the following pairing of cost drivers to cost pools has been suggested by Mr kandetu (a competent consultant): activity: sales staff salaries, driver: customer purchase orders activity: consultant staff salaries, driver: number of consultants activity:

warehouse staff wages, driver: items sold activity:

administrative staff salaries, driver: customer purchase orders plus consultants activity:

general overheads, driver: floor space

a. what is the total contribution for the lunch department?

b. what is the total fixed costs allocated to the lunch department?

c. what is the variable general costs for the lunch department?