SConner's Fixtures produces and sells a single product, a specialized plumbing fixture. The businessbegan operations on January 1 this year and its costs incurred during the year include the following:Variable costs (based on units produced):Direct materials costDirect manufacturing labor costsIndirect manufacturing costsAdministration and marketingFixed costs:Administration and marketing costsIndirect manufacturing costs$ 24,000108,00021,60013,50072,00024,000At the end of the first year (December 31), direct materials inventory consisted of 7,500 pounds ofmaterial. Production in that year was 10,000 fixtures. All prices and unit variable costs remained constantduring the year. Sales revenue for year 1 was $293,250. Finished goods inventory was $24.420 onDecember 31. Each finished fixture requires 3.20 pounds of material.Required:a. Compute the direct materials inventory cost, December 31.b. Compute the finished goods ending inventory in units (fixtures) on December 31.c. Compute the selling price per unit.a. Direct materials inventoryb. Finished goods inventoryc. Selling priced Operating profit (loss)d. Compute the operating profit for year 1.Note: Loss amounts should be shown with a minus sign.units

a) Direct material units used in production= 3.20 *10,000 fixtures =32,000 pounds Direct material…

costs (based on units produced): materials cost manufacturing labor costs et manufacturing costs stration and marketing sts: stration and marketing costs Et manufacturing costs $ 24,000 108,000 21,600 13,500 72,000 24,000 of the first year (December 31), direct materials inventory consisted of 7,500 roduction in that year was 10,000 fixtures. All prices and unit variable costs r

costs (based on units produced): materials cost manufacturing labor costs et manufacturing costs stration and marketing sts: stration and marketing costs Et manufacturing costs $ 24,000 108,000 21,600 13,500 72,000 24,000 of the first year (December 31), direct materials inventory consisted of 7,500 roduction in that year was 10,000 fixtures. All prices and unit variable costs r

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

1. What was Product J's unit cost under cost absorption costing? 2. What was Product J's unit cost under variable costing?
Average Cost per Unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense $6.55 $3.45 $1.45 $3.80 $1.40 $0.95 $1.35 $0.85 Sales commissions Variable administrative expense If 7,300 units are sold, the variable cost per unit sold is closest to:
Unit Costs, Inventory Valuation, Variable and Absorption Costing Snyder Company produced 99,100 units during its first year of operations and sold 96,850 at $20.79 per unit. The company chose practical activity—at 99,100 units—to compute its predetermined overhead rate. Manufacturing costs are as follows: Direct materials $552,978 Direct labor 97,118 Expected and actual variable overhead 359,733 Expected and actual fixed overhead 523,248 Required: If required, round unit cost answers to the nearest cent. 1. Calculate the unit cost and the cost of finished goods inventory under absorption costing. Unit Cost $fill in the blank 1 Cost of finished goods inventory $fill in the blank 2 2. Calculate the unit cost and the cost of finished goods inventory under variable costing. Unit Cost $fill in the blank 3 Cost of finished goods inventory $fill in the blank 4
Costing information for Emily Elephant Limited is as follows:Direct material cost per unitDirect labour cost per unitVariable manufacturing overhead cost per unitVariable selling and administrative overhead cost per unitFixed manufacturing overhead for the year£41 £43£6£4£44,000Budgeted production for the year was 4,000 units. What is the budgeted unit product cost according to an absorption costing system? a. £90 b. £101 c. £105d. £94
Under absorption costing, a company had the following unit costs when 9,000 units were produced. Direct labor $7.25 per unit Direct material $8.00 per unit Variable overhead $5.50 per unit Fixed overhead ($67,500/9,000 units) $7.50 per unit Total production cost $28.25 per unit Compute the total production cost per unit under variable costing if 30,000 units had been produced. $31.75 $28.25 $23.45 $15.25 $20.75