COST CONCEPTS REVIEW PROBLEM GIVEN: ABC Company's usual production is 10,000 units. The company's relevant range of production is 7,500 to 12,500 units When the company produces and sells 10,000 units, unit costs are as follows: Cost Per unit Total Direct Materials 600.00 Direct Labor 350.00 Variable manufacturing overhead 150.00 Fixed manufacturing overhead 400.00 4,000,000.00 Fixed Selling expenses 300.00 3,000,000.00 Fixed administrative expenses 200.00 2,000,000.00 Variable selling expenses 100.00 Variable administrative expenses 50.00 Important note: Relevant range is a range where total fixed costs, selling price per unit, and variable cost per unit stays the same or does not change. REQUIREMENTS: 1.) For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units? How much is the per unit product cost? 2.) For financial accounting purposes, what is the total amount of period costs (operating expenses) to sell 10,000 units 3.) If 8,000 units are sold, what is the variable cost per unit sold? 4.) If 8,000 units are sold, what is the total variable cost per unit sold? 5.) If 8,000 units are sold, what is the total fixed manufacturing overhead costs to support this production level? 6.) If 8,000 units are sold, what is the average fixed manufacturing overhead cost per unit sold? 7.) If 12,000 units are sold, what is the variable cost per unit sold? 8.) If 12,500 units are sold, what is the total variable cost per unit sold? 9.) If 12,500 units are sold, what is the total fixed manufacturing overhead costs to support this production level? 10.) If 12,500 units are sold, what is the fixed manufacturing overhead cost per unit sold? 11.) If 8,000 units are sold, what is the total manufacturing overhead costs to support this production level? What is the manufacturing overhead cost per unit? 12.) If 12,500 units are sold, what is the total manufacturing overhead costs to support this production level? What is the manufacturing overhead cost per unit? 13.) If the selling price is P2,200 per unit, what is the contribution margin per unit sold?

COST CONCEPTS REVIEW PROBLEM GIVEN: ABC Company's usual production is 10,000 units. The company's relevant range of production is 7,500 to 12,500 units When the company produces and sells 10,000 units, unit costs are as follows: Cost Per unit Total Direct Materials 600.00 Direct Labor 350.00 Variable manufacturing overhead 150.00 Fixed manufacturing overhead 400.00 4,000,000.00 Fixed Selling expenses 300.00 3,000,000.00 Fixed administrative expenses 200.00 2,000,000.00 Variable selling expenses 100.00 Variable administrative expenses 50.00 Important note: Relevant range is a range where total fixed costs, selling price per unit, and variable cost per unit stays the same or does not change. REQUIREMENTS: 1.) For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units? How much is the per unit product cost? 2.) For financial accounting purposes, what is the total amount of period costs (operating expenses) to sell 10,000 units 3.) If 8,000 units are sold, what is the variable cost per unit sold? 4.) If 8,000 units are sold, what is the total variable cost per unit sold? 5.) If 8,000 units are sold, what is the total fixed manufacturing overhead costs to support this production level? 6.) If 8,000 units are sold, what is the average fixed manufacturing overhead cost per unit sold? 7.) If 12,000 units are sold, what is the variable cost per unit sold? 8.) If 12,500 units are sold, what is the total variable cost per unit sold? 9.) If 12,500 units are sold, what is the total fixed manufacturing overhead costs to support this production level? 10.) If 12,500 units are sold, what is the fixed manufacturing overhead cost per unit sold? 11.) If 8,000 units are sold, what is the total manufacturing overhead costs to support this production level? What is the manufacturing overhead cost per unit? 12.) If 12,500 units are sold, what is the total manufacturing overhead costs to support this production level? What is the manufacturing overhead cost per unit? 13.) If the selling price is P2,200 per unit, what is the contribution margin per unit sold?

Name: COST CONCEPTS REVIEW PROBLEM GIVEN:
Uploaded: 2024-03-20T06:33:06.000Z
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Description: COST CONCEPTS REVIEW PROBLEM GIVEN: ABC Company's usual production is 10,000 units. The company's relevant range of production is 7,500 to 12,500 units When the company produces and sells 10,000 units, unit costs

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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COST CONCEPTS REVIEW PROBLEM

GIVEN:

	ABC Company's usual production is 10,000 units. The company's relevant range of production is 7,500 to 12,500 units
	When the company produces and sells 10,000 units, unit costs are as follows:
						Cost Per unit		Total
			Direct Materials		600.00
			Direct Labor		350.00
			Variable manufacturing overhead	150.00
			Fixed manufacturing overhead	400.00		4,000,000.00
			Fixed Selling expenses		300.00		3,000,000.00
			Fixed administrative expenses	200.00		2,000,000.00
			Variable selling expenses	100.00
			Variable administrative expenses	50.00

	Important note: Relevant range is a range where total fixed costs, selling price per unit, and variable cost per unit
		stays the same or does not change.

REQUIREMENTS:

	1.)	For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units?
		How much is the per unit product cost?
	2.)	For financial accounting purposes, what is the total amount of period costs (operating expenses) to sell 10,000 units
	3.)	If 8,000 units are sold, what is the variable cost per unit sold?
	4.)	If 8,000 units are sold, what is the total variable cost per unit sold?
	5.)	If 8,000 units are sold, what is the total fixed manufacturing overhead costs to support this production level?
	6.)	If 8,000 units are sold, what is the average fixed manufacturing overhead cost per unit sold?
	7.)	If 12,000 units are sold, what is the variable cost per unit sold?
	8.)	If 12,500 units are sold, what is the total variable cost per unit sold?
	9.)	If 12,500 units are sold, what is the total fixed manufacturing overhead costs to support this production level?
	10.)	If 12,500 units are sold, what is the fixed manufacturing overhead cost per unit sold?
	11.)	If 8,000 units are sold, what is the total manufacturing overhead costs to support this production level?
		What is the manufacturing overhead cost per unit?
	12.)	If 12,500 units are sold, what is the total manufacturing overhead costs to support this production level?
		What is the manufacturing overhead cost per unit?
	13.)	If the selling price is P2,200 per unit, what is the contribution margin per unit sold?

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