Answer Happy

Question 3: Buckley Enterprises operates a
single-product entity. Data relating to the product for 2020 were
as follows:
Annual Volume
32,000 Units
Selling price per unit
$50
Variable manufacturing cost per unit
$18
Annual fixed manufacturing costs
$320,000
Variable marketing and distribution costs per unit
$12
Annual fixed non-manufacturing costs
$160,000
PART A
(i) Calculate total fixed costs and total variable costs per
unit.
(ii) Calculate Profit Volume Ratio and break-even units for
2020.
(iii) Changes in marketing strategy are
planned for 2021. This would increase variable marketing and
distribution costs by $15 per unit and reduce fixed
non-manufacturing costs by $100,000 per year. Calculate and
interpret the units that would need to be sold in 2021 to achieve
the same profit as in 2020.
PART B
Nikon Furniture Ltd, an office
furniture retailer and wholesaler, carries a particular brand of
office chair.
During the year ended 30 June, the following purchases
occurred:
August
50 chairs@40
October
60
chairs @55
December
55
chairs@ 60
March
60 chairs
@50
As at 1 July, Nikon furniture Ltd had 18 chairs in inventory,
costed $44 per unit. As at 30 June an inventory count revealed 21
chairs in inventory. Compare the value of the office chairs on hand
as at 30 June to be included in the inventory balance on the
balance sheet under the FIFO inventory
method.
Required: Calculate value of inventory as
at 31 March 2015 under FIFO method of inventory
valuation.