AED

Steel used 70,000

Glass 8,200
Factory Rent 7,600
Electricity for welding 2,800
Labor cost of welders 21,000
Internet site 900
Admin. Salaries 10,300
Depreciation of welding equipment 4,400
Salary of factory safety supervisor 2,200
Office rent 8,650

TOTAL COST DIRECT MATERIAL DIRECT LABOR Factory Overhead

Steel used 70,000 70,000

Glass 8,200 8,200
Factory Rent 7,600 7,600
Electricity for welding 2,800 2,800
Labor cost of welders 21,000 21,000
Internet site 900
Admin. Salaries 10,300
Depreciation of welding equipment 4,400 4,400
Salary of factory safety supervisor 2,200 2,200
Office rent 8,650

Prime costs 91,000

Conversion costs 46,200
 Selling, General
and administration
costs

900
10,300

8,650
 AED
Direct Materials 5,000,000
Direct Labor 7,000,000
Factory overhead 2,500,000
Beginning work in progress 4,900,000
Ending work in progress 5,900,000

Direct Materials 5,000,000

Direct Labor 7,000,000
Factory overhead 2,500,000

TOTAL MANUFACTURING COSTS 14,500,000

+ Beginning work in progress 4,900,000

19,400,000
(-) Ending work in progress (5,900,000)
Cost of goods manufactured 13,500,000
 AED
Begin raw materials inventory 2,780,000
Raw materials purchase 6,320,000
ending raw material inventory 2,641,000
Direct labor costs 992,000
Indirect Materials 330,000
Indirect labor 261,000
Factory utilities and maintenance 1,340,000
Factory depreciation 152,000
Other factory overhead 67,000
Beg. WIP 2,100,000
End WIP 1,820,000

Direct Materials
Begin raw materials inventory 2,780,000
+ net purchased raw materials 6,320,000
TOTAL RAW MATERIALS AVAILABLE 9,100,000
(-) Ending raw materials inventory (2,641,000)
Raw materials transferred to production 6,459,000
Direct Labor 992,000

Factory Overhead
Indirect Materials 330,000
Indirect labor 261,000
Factory utilities and maintenance 1,340,000
Factory depreciation 152,000
Other factory overhead 67,000
TOTAL FACTORY OVERHEAD 2,150,000

TOTAL MANUFACTURING COSTS 9,601,000

+ begin WIP 2,100,000
- end WIP (1,820,000)

COST OF GOODS MANUFACTURED 9,881,000

End. WIP (900) 2,700,000
Selling price per table 15,000
End FG (300) 2,100,000
Indirect Labor 187,500
Raw material transferred to production (1050 T) 1,050,000
Beg FG (600) 4,200,000
Cost of glues 52,500
Beg WIP 2,197,500
End Raw Materials (750T) 750,000
Direct Labor 4,950,000
Selling, General and administration costs 1,725,000
Depreciation of factorty equipment 112,500
Raw materials purchaed (1350T) 1,350,000
All other factory overhead 450,000
Tables sold (1200)

RAW MATERIALS WIP FG

Beg. Bal. 450 750 600
Purchased / Transferred in 1,350 1050 900
Transferred out / sales -1,050 -900 1200
End Bal. 750 900 300
 Quantity
Begin. WIP 18,000
Start into Prod. 20,000
Total units into production 38,000 EQUIVALENT UNIT CALCULATION
Conversion
DIRECT Direct Labor Factory Overhead
MATERIELS
To finished Goods 30,000 30,000 30,000 30,000
Ending WIP 8,000 5,600* 4,000** 4,000
Total Units Reconciled 38,000 35,600 34,000 34,000

CONVERSION
TOTAL COST Direct Materials Direct Labor Factory Overhead
Begin. WIP 2,300,000 1,150,000 690,000 460,000
Cost incurred during Period 12,125,000 1,818,750 2,425,000 7,881,250
TOTAL COSTS 14,425,000 2,968,750 3,115,000 8,341,250
Equivalent Units 35,600 34,000 34,000
Costs per equivalent unit AED 83 AED 92 AED 245
+
AED 337
+
AED 420
Size 500 800 1,000
Revenues from sale 2,000,000 3,200,000 4,000,000
Feed 118,000 188,800 236,000
Labor (1 per minimu size) 68,000 136,000 136,000
Depreciation (1) 98,000 156,800 196,000
Depreciation (2) [1 per 50] 13,000 22,400 26,000
V&M 18,700 29,920 37,400
Land Lease 1,500,000 1,500,000 1,500,000
Operationg income 184,300 ……….... …………

Variable cost per unit cost Per unit cost

Feed 236
Depreciation 1 196
Vaccins & Medications 37

Fixed Cost
Land Lease 3,000 1,875 1,500

Fixed Costs (steped)

Labor (1 per minimu size) 196.00 170.00 136.00
Depreciation (2) [1 per 30] 26.00 28.00 26.00

Average Revenue per unit 4,000.00

Varaible costs 469.40
Contribution margin per unit 3,530.60

Assumption
Size 1780
Revenues from sale 7,120,000
Feed 420,080
Labor (1 per minimu size) 136,000
Depreciation (1) 348,880
Depreciation (2) [1 per 30] 46,280
V&M 66,572
Land Lease 1,500,000
Operationg income 4,602,188
Total Fixed costs 780,000 780,000
Total Variable costs 577,000 362,699
Total Revenues 2,200,000 1,142,699
843,000 0

Contribution Margin Ratio 0.74

Breakeven point in revenues 1,057,301
Level of decrease before making losses 51.94%
Reduction in revenues before losses 1,142,699
Fixed costs 400,000 300,000
Variable cost per client 250 280
Revenue per customer 475 475

Contribution margin per unit 225 195

Break-even point in customers 1,777.78 1,538.46

No. of customers 1,000

Total revenues 475,000
PROFIT/LOSS (175,000)

Target income (profit) 100,000

Contribution Margin Ratio 0.47
Sales For the target profit 1,055,556

Decrease in fixed costs 100,000

New Variable Cost to replace a fixed cost item 30

ORIGINAL NEW
Fixed costs 400,000 300,000
Variable cost per client 250 280
Revenue per customer 475 475

Contribution margin per unit 225 195

Break-even point in customers 1,777.78 1,538.46