COST REVIEWER PARTS ONE TO FIVE, Cheat Sheet of Cost Accounting

Download COST REVIEWER PARTS ONE TO FIVE and more Cheat Sheet Cost Accounting in PDF only on Docsity! COST REVIEWER PART 5 16. Introducing income taxes into cost-volume-profit analysis 17. Juan makes all sales on account, subject to the following collection pattern: 30% are collected in the month of sale; 60% are collected in the first month after sale; and 10% are collected in the second month after sale. If sales for October, November, and December were P70,000, P80,000, and P60,000, respectively, what were the firm's budgeted collections for December? 18. Manufacturing cycle efficiency is a measure of 19. Mia Division has net income of P240,000 on sales of P3,200,000. If the investment is P1,600,000 what is ROI? 20. The following information applies to Micro Lab, which supplies microscopes to laboratories throughout the country. Micro Lab purchases the microscopes from a manufacturer which has a reputation for very high quality in its manufacturing operation. Annual demand (weekly demand=1/52 of annual demand) 20,800 units Orders per year 20 Lead time in days 15 days Cost of placing an order P100 What is the reorder point? a. 857 units 21. Chronologically, the last part of the master budget to be prepared would be the d. pro-forma financial statements 22. For Raw Material B, a company maintains a safety stock of 5,000 pounds. Its average inventory (taking into account the safety stock) is 8,000 pounds. What is the apparent order quantity? 23. La Essenza has two divisions: the Cologne Division and the Bottle Division. The Bottle Division produces containers that can be used by the Cologne Division. The Bottle Division's variable manufacturing cost is P2, shipping cost is PO.10, and the external sales price is P3. No shipping costs are incurred on sales to the Cologne Division, and the Cologne Division can purchase similar containers in the external market for P2.60. The Bottle Division has sufficient capacity to meet all external market