Cohen Company produces and sells socks. Variable cost is $10.80 per pair, and fixed costs for the year total $109,800. The selling price is $18 per pair. Required: 1. Calculate the breakeven point in units. (Do not round intermediate calculations.) 2. Calculate the breakeven point in sales dollars. (Do not round intermediate calculations.) 3. Calculate the units required to make a before-tax profit of $61,200. (Do not round intermediate calculations.) 4. Calculate the sales dollars required to make a before-tax profit of $51,480. (Do not round intermediate calculations.) 5. Calculate the sales, in units and in dollars, required to make an after-tax profit of $41,480 given a tax rate of 30%. (Do not round intermediate calculations. Round sales in units up to the nearest whole number and sales in dollars to the nearest whole dollar.)
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Cohen Company produces and sells socks. Variable cost is $10.80 per pair, and fixed costs for the year total $109,800. The selling price is $18 per pair.
Required:
1. Calculate the breakeven point in units. (Do not round intermediate calculations.)
2. Calculate the breakeven point in sales dollars. (Do not round intermediate calculations.)
3. Calculate the units required to make a before-tax profit of $61,200. (Do not round intermediate calculations.)
4. Calculate the sales dollars required to make a before-tax profit of $51,480. (Do not round intermediate calculations.)
5. Calculate the sales, in units and in dollars, required to make an after-tax profit of $41,480 given a tax rate of 30%. (Do not round intermediate calculations. Round sales in units up to the nearest whole number and sales in dollars to the nearest whole dollar.)
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