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AC1025 A company has a gross profit ratio of 30%. The trade receivables collection period for the company: Principles of Accounting Assignment, SIM, Singapore
University Singapore Institute of Management (SIM)
Subject AC1025 Principles of Accounting Assignment.
Posted on: 27th Jan 2024

AC1025 A company has a gross profit ratio of 30%. The trade receivables collection period for the company: Principles of Accounting Assignment, SIM, Singapore

Question 4

A company has a gross profit ratio of 30%. The trade receivables collection period for the company has been calculated at 62 days. If the actual gross profit earned was £360,000, what were the trade receivables?

AC1025 Principles of Accounting

Question 5

The cost of the inventory items of Robertson Ltd at the end of the year 2021 corresponds to £25,000. The selling price is £30,000 but the costs related to the selling and delivery of the inventory items are £7,000. The value of the inventory at the end of the year 2021 is:

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Question 6

The manufacturing plant at Daydream plc has three departments. The budgets for each department is shown below:

AC1025 Principles of Accounting

Calculate the production overhead for each department.

AC1025 Principles of Accounting

Question 7

Bates Ltd makes and sells 200,000 gadgets for children a year for £15 each. Fixed costs are £360,000 a year and variable costs are £12 per unit.

If Bates Ltd can increase the volume of sales to 250,000 gadgets by reducing its selling price to £14.50. What is the breakeven by volume?

AC1025 Principles of Accounting

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