**Chapter 25: Product Cost Method of Product Costing**Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,270 cell phones are as follows:- **Variable costs per unit:** - Direct materials: $71 - Direct labor: $37 - Factory overhead: $22 - Selling and administrative expenses: $22 - **Total variable cost per unit: $152**- **Fixed costs:** - Factory overhead: $199,500 - Selling and administrative expenses: $70,800Voice Com desires a profit equal to a 15% rate of return on invested assets of $601,600.a. **Determine the amount of desired profit from the production and sale of 5,270 cell phones.** - Calculated profit: $90,240b. **Determine the product cost per unit for the production of 5,270 cell phones. Round your answer to the nearest whole dollar.** - Product cost per unit: $168c. **Determine the product cost markup percentage for cell phones. Round your answer to two decimal places.** - Markup percentage: 31% ### Transcription for Educational Website**Exercise:****c.** Determine the product cost markup percentage for cell phones. Round your answer to two decimal places.Input: **31 %****d.** Determine the selling price of cell phones. Round your answers to the nearest whole dollar.- **Total Cost:** $168 per unit- **Markup:** $25 per unit- **Selling Price:** $193 per unit**Feedback:****Check My Work**a. Multiply the desired profit percentage by the desired amount (invested assets).b. Divide the total manufacturing (variable and fixed) costs by the number of units produced.c. Divide the desired profit plus the total selling and administrative expenses by the total manufacturing cost.d. Add cost (b) and markup [(c) × (b)].

Ans c) Product cost mark up percentage for cell phones:::::: Product cost mark…

Chapter 25 O eBook 4 Show Me How Product Cost Method of Product Costing Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,270 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $71 Factory overhead $199,500 Direct labor 37 Selling and administrative expenses 70.800 Factory overhead 22 Selling and administrative expenses 22 Total variable cost per unit $152 Voice Com desires a profit equal to a 15% rate of return on invested assets of $601,600. a. Determine the amount of desired profit from the production and sale of 5,270 cell phones. $ 90,240 b. Determine the product cost per unit for the production of 5,270 of cell phones. Round your answer to the nearest whole dollar. 168 V per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. 31 x %

Chapter 25 O eBook 4 Show Me How Product Cost Method of Product Costing Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,270 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $71 Factory overhead $199,500 Direct labor 37 Selling and administrative expenses 70.800 Factory overhead 22 Selling and administrative expenses 22 Total variable cost per unit $152 Voice Com desires a profit equal to a 15% rate of return on invested assets of $601,600. a. Determine the amount of desired profit from the production and sale of 5,270 cell phones. $ 90,240 b. Determine the product cost per unit for the production of 5,270 of cell phones. Round your answer to the nearest whole dollar. 168 V per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. 31 x %

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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