[Essay Help]: BE211/4-Introduction To Managerial Accounting
BE211/4-Introduction To Managerial Accounting.
Hi-Tech Computers (HTC) is one of the leading computer service providers in Gulf Countries. It is operating with a head office at Bahrain and with branches throughout Gulf Countries. Hi-Tech Computers started its operations as a service company that specialized in providing computer related services like networking, software installation, maintenance of computer systems etc. Later it became a merchandising company. Now, the company is buying microchips, memory, keyboard, mouse and computer accessories and selling them to their customers in their retail stores. As it has become a merchandising company, it has got many stakeholders now like customers, creditors, bankers, owners, employees, government, general public etc. The company has been keen on initializing management accounting systems within the company to help top management and managers to move ahead in achieving its long-term goals.
(a) Service and Merchandising Operations of Hi-Tech Computers
Hi-Tech Computers furnishes cost details about its service and merchandising operations for the financial year 2018. The details are as below:
|Information||Merchandising Operations||Service Operations|
|Beginning Inventory (Finished goods)||100,000||–|
|Closing Inventory (Finished Goods)||60,000||–|
|Purchase of inventories||200,000||–|
|Selling & Distribution Expenses||40,000||72,000|
(b) Manufacturing Operations of Hi-Tech Computers
Later in 2018, the company had moved from merchandising to manufacturing operations as well. It has two main products (A and B). The cost and sales details of products A and B been estimated as below:
|Information||Product A||Product B|
|Sales (2000 units @ 25 per unit)||50,000||50,000|
|Less: Variable Costs|
|(2000 units x $ 5 per unit)||(10,000)|
|(2000 units x $ 15 per unit)||(30,000)|
BE211/4-Introduction To Managerial Accounting
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