A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: ⚫ Selling price = $150 ⚫ Units in beginning inventory = 0 ⚫ Units produced = 3,200 ⚫ Units sold = 3,000 • Units in ending inventory = 200 Variable costs per unit: ⚫ Direct materials = $55 ⚫ Direct labor = $20 • Variable manufacturing overhead = $10 ⚫ Variable selling and administrative = $12 Fixed costs: • Fixed manufacturing overhead = $96,000 ⚫ Fixed selling and administrative expenses = $18,000 What is the total gross margin for the month under absorption costing?

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: ⚫ Selling price = $150 ⚫ Units in beginning inventory = 0 ⚫ Units produced = 3,200 ⚫ Units sold = 3,000 • Units in ending inventory = 200 Variable costs per unit: ⚫ Direct materials = $55 ⚫ Direct labor = $20 • Variable manufacturing overhead = $10 ⚫ Variable selling and administrative = $12 Fixed costs: • Fixed manufacturing overhead = $96,000 ⚫ Fixed selling and administrative expenses = $18,000 What is the total gross margin for the month under absorption costing?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
Wyandotte Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 256,900, direct labor cost was 176,000, and overhead cost was 308,400. There were 40,000 units produced. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 6.62 is direct materials and 7.71 is overhead. What is the prime cost per unit? Conversion cost per unit?
Orinder Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 275,800, direct labor cost was 153,000, and overhead cost was 267,300. There were 25,000 units produced. Unit manufacturing cost (rounded to the nearest cent) is a. 28.40 b. 27.98 c. 34.95 d. 27.55
On March 31, the end of the first month of operations, Barnard Inc. manufactured 15,000 units and sold 12,000 units. The following income statement was prepared, based on the variable costing concept: Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.
Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs: Fixed overhead per unit = 280,000/40,000 units produced = 7. Total fixed factory overhead is 280,000 per month. During October, 38,400 units were sold at a price of 24, and fixed marketing and administrative expenses were 130,500. Required: 1. Calculate the cost of each unit using absorption costing. 2. How many units remain in ending inventory? What is the cost of ending inventory using absorption costing? 3. Prepare an absorption-costing income statement for Pattison Products, Inc., for the month of October. 4. What if November production was 40,000 units, costs were stable, and sales were 41,000 units? What is the cost of ending inventory? What is operating income for November?
During the week of August 21, Parley Manufacturing produced and shipped 4,000 units of its machine tools: 1,500 units of Tool SK1 and 2,500 units of Tool SK3. The cycle time for SK1 is 0.73 hour, and the cycle time for SK3 is 0.56 hour. The following costs were incurred: Required: 1. Assume that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost, and comment on its accuracy. 2. Assume that Tool SK1 is responsible for 60% of the materials cost. Calculate the unit cost for Tool SK 1 and Tool SK3, and comment on its accuracy. Explain the rationale for using units shipped instead of units produced in the calculation. 3. Calculate the unit cost for the two models, using DBC. Explain when and why this cost is more accurate than the unit cost calculated in Requirement 2.
Kindly help me with accounting questions
What is the total period cost for the month?
correct answer is accounting.
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A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Units in beginning inventory 0 Units produced 4,900 Units sold 4,800 Units in ending inventory 100 Variable costs per unit: Direct materials $ 59 Direct labor $ 61 Variable manufacturing overhead $ 24 Variable selling and administrative expense $ 22 Fixed costs: Fixed manufacturing overhead $102,900 Fixed selling and administrative expense $48,000 What is the variable costing unit product cost for the month?
what is the unit product cost?