Muscle Concrete Mixes Concrete and Trucks It to Construction Sites

question 56

Essay

Muscle Concrete mixes concrete and trucks it to construction sites. The company uses a standard costing system for the batches of concrete produced. The company has a fleet of 10 mixing trucks, each of which goes on three runs per day, 350 days per year under normal circumstances. The standard costs are as follows:
$\begin{array}{ll}\text { Standard costs per batch based on } 1,050 \text { batches per year } & \text { Amount } \\\hline \text { Raw material - gravel, sand, cement, chemicals } & \$ 1,000 \\\text { Wages } & 400 \\\text { Variable overhead - mixing truck depreciation, diesel fuel, etc. } & 450 \\\text { Fixed overhead - depreciation on raw materials silo } &\underline{ 400} \\\text { Total production cost per batch } &\underline{ \$ 2,250} \\\text { Opening inventory cost - all raw materials } & 1,000,000 \\\text { Ending inventory cost - all raw material } & 450,000\end{array}$ During 2020, the company received an unusually large order for a big construction project. As a result, Muscle Concrete had to extend its operating hours and days, temporarily increasing output to 1,250 batches for the year. The company used the first-in, first-out cost flow assumption. Actual variable costs approximated standard costs per batch. Depreciation rates established at the beginning of the year remain valid for the year.
Required:
Determine the amount of cost of goods sold for 2020.

Distinguish between different data types and their implications for data analysis.

Understand the concepts of mean, median, and mode in the context of data analysis.

Recognize the importance of considering variation in decision-making processes.

Differentiate between data and information and their roles in business analysis.

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Definitions:

Merger Premium

The additional amount an acquiring company pays over the market value of the shares to purchase another company.

Equity-Financed

Pertains to the method of funding a business through selling shares to investors, thereby increasing ownership equity.

Incremental Value

The additional value created by undertaking a specific project or action, measured by the difference in a firm's value with and without the undertaking.

Outstanding Stock

The total shares of a corporation that are currently owned by all its shareholders, including shares held by institutional investors and restricted blocks held by insiders and company officers.