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EXTRA POINTS Grillex Manufacturing Company manufactured 100,000 grills in 2019 and reported the following costs: Indirect manufacturing labor AED 300.200 Leasing costs - plant machines AED 200,000 Depreciation -plant equipment 95,000 Direct material used 1,355,000 Property taxes-plant hall 22,000 Fire insurance - plant equipment 34,000 Direct manufacturing labor 1,045,000 Administration costs 740,000 Sales revenue 12,700,000 Salaries of shop assistants 576,000 Work-in-process, 1/1/2019 88,000 Work-in-process, 12/31/2019 64,000 Finished goods, 1/1/2019 320,000 Finished goods, 12/31/2019 1,280,000 Indirect material (material handling, coolants and lubricants) AED 96,000 Required: (a) What are new production costs? [b] What is cost of goods manufactured for 2019? [c] What is cost of goods sold for 2019? [d] Compute the manufacturing cost per unit, the full cost per unit and the average selling price per unit? How much does manager earn per each unit sold? [4] Use the data from the previous exercise. (a Prepare Income statement emphasizing the gross profit. What is gross profit margin for Helmer Inc? Explain what manager controls through this ratio. [b] Company produces 100,000 units. Assume that only direct material and direct labour are variable costs, calculate how many units must be produced to breakeven. [cl To achieve targeted operating income 10 milion AED what revenues must be achieved? Id what is the Margin of safety at this moment when revenues is 12.700.000 AEDI

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