Accounting management accounting (MIEMP)

Objective 1.

The company manufactures tiles. In 2010, it was produced - 150,000 units, sold - 140,000 units. Direct material costs accounted for - 700,000 rubles., Direct labor - 550,000 rubles. Variable overhead costs - 600,000 rubles., Constant overhead expenses - 400,000 rubles., Variable selling expenses - 300,000 rubles., Regular business expenses - 500,000 rubles. The offer price was - 125 rubles. Remnants of work in progress was not, at the beginning or at the end of the year. Remains of finished products in the previous year were zero. Regular general expenses - 1000000 rubles.

Required:

1. Calculate the unit cost of production and inventories of finished goods using:

 full cost method of accounting;

 method of accounting for variable costs.

2. Prepare a profit and loss account for the year 2010, using:

 full cost method of accounting;

 method of accounting for variable costs.


Objective 2.

The company has recently entered the market or with high competition. The manager is making efforts to win market share. The price of the products sold by them 6 rubles., Which is much lower than most competitors price Variable costs amounted to 550 rubles. per unit of product, and the constant for the year equal to 250 rubles.

1. Assume that the company managed to sell 550,000 units per year. What was the profit (loss) for the year?

2. The manager has succeeded in winning position on the market. What price for the products you want to install, profit amounted to 5500 rubles.? It is assumed that the variable and fixed costs do not change and the level of production may not exceed the volume of production in the first year.