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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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.
In 2012, Grant Co. sold 160,000 units of its product at a selling price of $40. The variable cost per unit was $30, and Grant reported net income for the year of $200,000. What was the amount of Grant's fixed costs for the year?
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The Cinnamon Company’s normal sales volume is 500,000 units. The unit cost to make and sell the product is as follows: Direct materials P50.00 Direct Labor 25.00 Variable factory overhead 10.00 Fixed factory overhead 15.00 Variable selling and administrative expenses 8.00 Fixed selling and administrative expenses 7.00 Beginning 2012, replacement cost of direct material is P55 per unit, labor contract provides and increase of 20% and variable selling costs increase by 10%. Sales discount averages 3% on gross sales. REQUIRED: Compute the unit selling price to be set up if management desires a profit of 25% based on full costs.
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