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Section B Management accounting for Authentic Sweaters Ltd: Authentic Sweaters Ltd designs and sells wool jumpers to local retailers and distributes them around Europe. Cool Wool is the main product of Authentic Sweaters Ltd and it produces and sells 30,000 units a year at a price of 20 per jumper. The head office and factory for producing the jumpers is in Dorset with an annual rental cost of 20,000. The head-office occupies 300- meter square while the factory occupies 700-meter squares of the premises. Insurance provision on factory was at a cost of 5000 per year. To advertise CoolWool, Authentic Sweaters Ltd participates in the London Fashion show. The cost of organising the event comes to 6,000 excluding 500 travel cost of its marketing personnel Emma and Jack, who are paid the following wages and salaries: Emma is the marketing director and is paid a salary of 10,000 per annum. Jack is the salesperson and is paid 3,000 per year in addition to 0.1 per CoolWool sold. The table below lists costs incurred by Authentic Sweaters Ltd for the year Costs Cost of materials 4/unit Carriage inwards 500 Cost of labour 4/unit Depreciation of factory machinery 1,500 Company director salary 20.000 Section B Management accounting for Authentic Sweaters Ltd: Authentic Sweaters Ltd designs and sells wool jumpers to local retailers and distributes them around Europe. Cool Wool is the main product of Authentic Sweaters Ltd and it produces and sells 30,000 units a year at a price of 20 per jumper. The head office and factory for producing the jumpers is in Dorset with an annual rental cost of 20,000. The head-office occupies 300- meter square while the factory occupies 700-meter squares of the premises. Insurance provision on factory was at a cost of 5000 per year. To advertise CoolWool, Authentic Sweaters Ltd participates in the London Fashion show. The cost of organising the event comes to 6,000 excluding 500 travel cost of its marketing personnel Emma and Jack, who are paid the following wages and salaries: Emma is the marketing director and is paid a salary of 10,000 per annum. Jack is the salesperson and is paid 3,000 per year in addition to 0.1 per CoolWool sold. The table below lists costs incurred by Authentic Sweaters Ltd for the year Costs Cost of materials 4/unit Carriage inwards 500 Cost of labour 4/unit Depreciation of factory machinery 1,500 Company director salary 20.000

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