Task 1 A furniture store received a bookcase produced from a local manufacturer

Task 1

A furniture store received a bookcase produced from a local manufacturer. The company provides this information:

 a. Calculate cost and sales price incl. VAT for the shelf. VAT. rate is 25%.

2. What profit margin did the company have to calculate in order to get the same sales price (excluding m.v.a.) as in a)?

For a period, the same company had sales revenues of NOK 1,200,000 and purchases of goods (VAT) of NOK 850,000. The inventory at the beginning of the period was NOK 650,000 and at the end of the period of NOK 600,000. IB accounts payable was NOK 200,000, and UB accounts payable was NOK 100,000.

3. What will be the company's gross profit in NOK and% for the period?

Task 2

A company has two orders under production, orders 51 and 57.

The company has three departments, two in production - the materials department and the manufacturing department - and in addition the sales and administration department.

The cost driver for the indirect material costs is the direct material costs, while the number of working hours is the cost driver in the manufacturing department.

The budget for 2021 is summed up in these figures:

Actual recorded data for the last month:

                                                        51                       57

Direct materials                          224.000            171.000

Direct labor costs                     269.000             229.000

Hourly consumption                 225 timer         240 timer

Order 51 has been produced in its entirety in March. Production for the period was sold for NOK 690,000.

For order 57, the stock of work in progress has been reduced by 47,500 and was sold for 624,000.

a) Set up operating accounts for the last month according to the cost method. (The operating accounts must be kept in full kroner. Feel free to use the attached

Excel file)

The internal accounts show these real indirect costs last month

    Material-         Manufacturing-     Sales- &              Total     department department        adm. Department  costs

Indirect costs

• Variable                             18.750             39.250                        72.500
• Fixed                    40.250             57.000                        19.250

a) Analyze the coverage differences in the manufacturing department last month and give possible deviations short comments.