During its first year of operations, Connor Company paid $39,000 for direct materials and $19,000 In wagesfor production workers. Lease payments and utilities on the production facilities amounted to $8,000.General, selling, and administrative expenses were $9,000. The company produced 6,000 units and sold5,000 units for $16.00 a unit. The average cost to produce one unit is which of the following amounts?

Total production cost is the total cost incurred in the manufacturing of product during the period.…

Answered: During its first year of operations,…

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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Al-Can Products, Inc. estimates that it will build 5,000 benches next year. For this amount of production, total factory overhead is estimated to be $123,456.00. Estimated direct labor costs for next year are $256,190.00. Calculate the factory overhead applied rate for next year as a percentage of direct labor costs.
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations: Variable costs per unit: Manufacturing: Direct materials $ 12 Direct labor $ 6 Variable manufacturing overhead $ 3 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $ 276,000 Fixed selling and administrative $ 186,000 During the year, the company produced 23,000 units and sold 19,000 units. The selling price of the company’s product is $50 per unit. Required: 1. Assume that the company uses absorption costing: a. Compute the unit product cost. b. Prepare an income statement for the year. 2. Assume that the company uses variable costing: a. Compute the unit product cost. b. Prepare an income statement for the year.
Company XYZ is currently producing and selling 100 units. At this level, the total direct materials cost is $500, the total direct labor cost is $600 and the total manufacturing overhead cost is $1,200, which includes $800 fixed manufacturing overhead cost. The company's total selling and administrative expenses are $2,500, which include $1,500 fixed selling and administrative costs. Assume that the company wishes to increase the number of units produced and sold to 102 units, what would be the incremental cost? (rounded to nearest ($) value) О а. 46 Оь. 25 None of the given answers O d. 50 O e. 30
Munoz Manufacturing Company began operations on January 1. During the year, it started and completed 1,730 units of product. The financial statements are prepared in accordance with GAAP. The company incurred the following costs: Raw materials purchased and used—$3,080. Wages of production workers—$3,510. Salaries of administrative and sales personnel—$1,970. Depreciation on manufacturing equipment—$5,520. Depreciation on administrative equipment—$1,755. Munoz sold 1,210 units of product. Required Determine the total product cost for the year. Determine the total cost of the ending inventory. (Do not round intermediate calculations.) Determine the total of cost of goods sold. (Do not round intermediate calculations.) a. Total product cost b. Total cost of ending inventory c. Total cost of goods sold

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