Ajax Factories produces pencils at a factory designed to produce 10 million pencils per year. Give true answer this accounting question Ajax Factories produces pencils at a factory designed to produce10 million pencils per year. In 2007 the fixed production overheadrelated to the factory was $1 million, and the factory produced 9million pencils.The inventory cost for each pencil related to the fixed productionoverhead is closest to?a. $0.00b. $0.10c. $0.11

Step 1: Define Overhead CostIt refers to all the indirect costs which are not related to production…

Answered: Ajax Factories produces pencils at a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sheffield Corp. sells its product for $70 per unit. During 2016, it produced 60,000 units and sold 50,000 units (there was no beginning inventory). Costs per unit are: direct materials $15, direct labor $12, and variable overhead $1. Fixed costs are: $720,000 manufacturing overhead, and $90,000 selling and administrative expenses. The per-unit manufacturing cost under absorption costing is: a. $41 b. $28 c. $40 d. $27
In 19A, Starborne Inc. produces a machine for $675 and sells for $1,000. Cost of goods sold comprises of 35% of material, 40% of labour and remaining FOH. During this year, 1000 units have been sold. It is expected that next year, cost of material and labour will go up by 20% and 30% respectively. In order to be competitive, company is increasing the sale price per unit only by 10%, due to which it is expected to increase in volume by 15% also. You are required to prepare forecasted Income statement for 19B, if the prime cost is 60% of cost of goods sold.
Bang Inc has the following cost details: per kg. Material cost= 200 Direct labour= 40 Direct variable overhead= 20 Fixed production charges for the year on normal working capacity of 2 lakh kgs is 20 lakhs. 4,000 kgs of finished goods are in stock at the year end. Find Value of inventory per kg of finished goods.
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RYX Manufacturing Company uses 1,000 units of Chip annually in its production. Order costs consist of P10 for placing a long-distance call to make the order and P40 for delivering the order by truck to the company warehouse. Each Chip costs P100 and the carrying costs are estimated at 15.625% of the inventory cost. What is the economic order quantity for Chip? _______________.
RYX Manufacturing Company uses 1,000 units of Chip annually in its production. Order costs consist of P10 for placing a long-distance call to make the order and P40 for delivering the order by truck to the company warehouse. Each Chip costs P100 and the carrying costs are estimated at 15.625% of the inventory cost. What is the total order cost? _______________.
During 2022, Bridgeport Corp. produced 45,100 units and sold 36,080 for $14.00 per unit. Variable manufacturing costs were $4.00 per unit. Annual fixed manufacturing overhead was $108,240. Variable selling and administrative costs were $3.00 per unit sold, and fixed selling and administrative expenses were $19,900. (a) Prepare an absorption-costing income statement. (b) Your answer is correct. 4 Sales Cost of goods sold Beginning inventory Add ✓ Costs of goods manufactured Goods available for sale Less Ending inventory Gross margin Less Selling and administrative expenses Operating income eTextbook and Media Bridgeport Corp. Income Statement-Absorption Costing For the Year Ended December 31, 2022 Variable costing operating income $ Absorption costing operating income Fixed manufacturing overhead costs deferred in ending inventory $ $ 288640 i 288640 0 57728 i 505120 230912 i 274208 Reconcile the difference between the net income under variable costing and the net income under…
Jordon Company produced and sold 50,000 units in 2014. The units sold for $140 each. During the period, the following cost were incurred. Variable selling and administrative expenses per unit Variable manufacturing overhead per unit Direct labor per unit $ 15 20 30 Direct materials per unit 25 Fixed selling and administrative expenses $ 5,50,000 Fixed manufacturing overhead 6,50,000 Tax rate is 40%. Calculate the gross margin per unit for Jordon Company.
The company manufactures product X which has a selling price of ₱90 per unit. Costs associated with the manufacture and sale of product X based on 40,000 units manufactured and sold each year are: Direct materials→₱15.00; Direct labor→₱10.00; Variable manufacturing overhead→₱8.00; Fixed manufacturing overhead→₱600,000.00; Variable selling, general and administrative expenses→₱4.00; Fixed selling, general and administrative expenses→₱800,000.00. The company uses the absorption costing approach to cost-plus pricing . The percentage markup being used to determine the selling price for product X is: a. 87.50% b. 172.73% c. 143.24% d. 73.08% e. 25% f. 60%
Olson manufactures a single product and sells it for $10 per unit. At the beginning of the year there were 1,000 units in inventory. Upon further investigation, you discover that units produced last year had $3.00 of fixed manufacturing cost and $2.00 of variable manufacturing cost. During the year Olson produced 10,000 units of product. Each unit produced generated $3.00 of variable manufacturing cost. Total fixed manufacturing cost for the current year was $40,000. There were no inventories at the end of the year. This current year Absorption Costing Net Income is Select one: a. $36,000 b. $35,000 c. $37,000 d. $38,000
The company manufactures product X which has a selling price of ₱48 per unit. Unit costs associated with the manufacture and sale of product X based on 30,000 units manufactured and sold each year are: Direct materials→₱10.00; Direct labor→₱6.00; Variable manufacturing overhead→₱5.00; Fixed manufacturing overhead→₱6.00; Variable selling, general and administrative expenses→₱3.00; Fixed selling, general and administrative expenses→₱8.00. The company uses the absorption costing approach to cost-plus pricing . The percentage markup being used to determine the selling price for product X is: a. 100.0% b. 37.5% c. 60.0% d. 40.0%
What is the approximate breakeven point in units?

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