General Accounting Ajax Writing Co. produces pens at a factory designed toproduce 20 million pens per year. In 2023, the fixedproduction overhead related to the factory was $2.4million, and the factory produced 16 million pens.The inventory cost for each pen related to the fixedproduction overhead is closest to:a. $0.12b. $0.15c. $0.10

Step 1: Define Fixed Production OverheadFixed production overhead refers to indirect costs that…

Answered: Ajax Writing Co. produces pens 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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Q25 Mixing Company manufactured 1,098 units of its only product during 2022. The inputs for this production are as follows: 610 pounds of Material A at a cost of $1.50 per pound 460 pounds of Material H at a cost of $3.55 per pound 620 direct labor hours at $52 per hour The firm manufactured 3,000 units of the same product in 2021 with the following inputs: 660 pounds of Material A at a cost of $2.00 per pound 520 pounds of Material H at a cost of $3.30 per pound 560 direct labor hours at $50 per hour In 2022, the partial financial productivity of Material A is: Multiple Choice 1.20. 1.10. 0.44. 1.15. 0.97.
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Questions (d) and (e) are based on the information below. Sanit Ltd is an alcohol sanitizer manufacturing company that produced 175 000 units of 100 ml hand sanitizer bottles during the financial year ended 31 August 2020. The normal capacity is 100 000 units of hand sanitizer 100 ml bottles per year. The total cost per unit, excluding fixed production overheads, amounts to R50 per unit. The fixed production overheads incurred amounts to R700 000 for the year. The closing balance of finished goods is 5 000 units. Assume there is no opening balance. (d) The under / over recovered fixed production overheads that is recognised as an expense (cost of sales) according to IAS 2, Inventories, amounts to: 1) R525 000 over recovery 2) R525 000 under recovery 3) R700 000 over recovery 4) R0 (e) Calculate the cost of sales in the statement of profit or loss and other comprehensive income for the financial year end 31 August 2020 of Sanit Ltd: 1) R9 000 000 2) R9 180 000…
Fast Track Auto produces and sells an auto part for S65 per unit. In 2020, 125,000 parts were produced and 80,000 units were sold. Other information for the year includes: Direct Materials $20 per unit Direct manufacturing labor $5 per unit Variable manufacturing costs $3 per unit Sales commissions $6 per part Fixed Manufacturing costs $790,000 per year Administrative expenses, all fixed $320,000 per year What is the inventoriable cost per unit using absorption costing? A. $28.00 B. $36.88 C. $34.32 D. $34.00
Bramble Corp. sells its product for $60 per unit. During 2019, it produced 60000 units and sold 50000 units (there was no beginning inventory). Costs per unit are: direct materials $13, direct labor $15, and variable overhead $4. Fixed costs are: $720000 manufacturing overhead, and $90000 selling and administrative expenses. Cost of goods sold under absorption costing is O $2200000 O $1600000. o $1650000. O $1500000. eTextbook and Media
Mixing Company manufactured 1,716 units of its only product during 2022. The inputs for this production are as follows: 520 pounds of Material A at a cost of $1.50 per pound 325 pounds of Material H at a cost of $2.75 per pound 580 direct labor hours at $48 per hour The firm manufactured 2,850 units of the same product in 2021 with the following inputs: 640 pounds of Material A at a cost of $1.90 per pound 500 pounds of Material H at a cost of $3.20 per pound 540 direct labor hours at $46 per hour In 2022, the partial financial productivity of Material H is:
Mixing Company manufactured 1,900 units of its only product during 2022. The inputs for this production are as follows: 490 pounds of Material A at a cost of $1.90 per pound 340 pounds of Material H at a cost of $3.15 per pound 460 direct labor hours at $36 per hour The firm manufactured 2,259 units of the same product in 2021 with the following inputs: 580 pounds of Material A at a cost of $1.60 per pound 450 pounds of Material H at a cost of $2.90 per pound 480 direct labor hours at $34 per hour The partial operational productivity of Material H in 2021 is:
Seaside Manufacturing Inc. estimated its manufacturing overhead costs for 2023 to be $450,000, based on 150,000 estimated machine hours. The actual machine hours for 2023 were 160,000. The manufacturing overhead account contains debit entries totaling $465,000. Determine whether the manufacturing overhead for 2023 was overallocated or underallocated. (Round your immediate calculations to one decimal place.) Need answer
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