esZurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables, using select hardwoods. Thedivision's monthly costs are shown in the schedule below:Manufacturing costs:Variable costs per unit:Direct materialsVariable manufacturing overheadFixed manufacturing overhead costs (total)Selling and administrative costs:VariableFixed (total)Units producedUnits sold5,3854,130a. Absorption costing$20$$694,665ta ta taUnit ProductCost173Zurgot regards all of its workers as full-time employees, and the company has a long-standing no-layoff policy. Furthermore,production is highly automated. Accordingly, the company includes its labour costs in its fixed manufacturing overhead. The tables sellfor $508 each.During the first month of operations, the following activity was recorded:3010% of sales$387,720Required:1. Compute the unit product cost under each of the following costing method.---K

Absorption costing method is a method of costing in which product cost is calculated by adding…

es Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables, using select hardwoods. The division's monthly costs are shown in the schedule below: Manufacturing costs: Variable costs per unit: Direct materials. Variable manufacturing overhead Fixed manufacturing overhead costs (total) Selling and administrative costs: Variable Fixed (total) Units produced Units sold 5,385 4,130 a Absorption costing 173 20 $694,665 Zurgot regards all of its workers as full-time employees, and the company has a long-standing no-layoff policy. Furthermore, production is highly automated. Accordingly, the company includes its labour costs in its fixed manufacturing overhead. The tables sell for $508 each. During the first month of operations, the following activity was recorded: $ $ Unit Product Cost 10% of sales $387,720 Required: 1. Compute the unit product cost under each of the following costing method. 4

es Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables, using select hardwoods. The division's monthly costs are shown in the schedule below: Manufacturing costs: Variable costs per unit: Direct materials. Variable manufacturing overhead Fixed manufacturing overhead costs (total) Selling and administrative costs: Variable Fixed (total) Units produced Units sold 5,385 4,130 a Absorption costing 173 20 $694,665 Zurgot regards all of its workers as full-time employees, and the company has a long-standing no-layoff policy. Furthermore, production is highly automated. Accordingly, the company includes its labour costs in its fixed manufacturing overhead. The tables sell for $508 each. During the first month of operations, the following activity was recorded: $ $ Unit Product Cost 10% of sales $387,720 Required: 1. Compute the unit product cost under each of the following costing method. 4

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

in the picture
The machining division of ITA International has a capacity of 2,000 units. Its sales and cost data are: Selling price per unit $75 Variable manufacturing costs per unit 20 Variable selling costs per unit 3 Total fixed manufacturing overhead 175,000 The machining division is currently selling 1,800 units to outside customers, and the assembly division of ITA International wants to purchase 400 units from machining. If the transaction takes place, the variable selling costs per unit on the units transferred to assembly will be $0/unit, and not $3/unit. If the assembly division is currently buying from an outside supplier at $72 per unit, what will be the effect on overall company profits if internal sales for 400 units take place at the optimum transfer price? The company profits would by $
Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $205 and $164, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 127,000 units of each product. Its unit costs for each product at this level of activity are given below: Direct materials Direct labour Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Cost per unit Contribution margin per pound Alpha $40 Alpha 37 24 Beta 32 29 32 $194 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars. Beta $ 24 30 22 12. What contribution margin per pound of raw material is earned by Alpha and Beta? (Round your answers to 2 decimal places.)…
Rand Company produces dry fertilizer. At the beginning of the year, Rand had the following standard cost sheet: Direct materials (8 lbs. @ $1.25) $10.00 Direct labor (0.15 hr. @ $18.00) 2.70 Fixed overhead (0.20 hr. @ $3.00) 0.60 Variable overhead (0.20 hr. @ $1.70) 0.34 Standard cost per unit $13.64 Overhead rates are computed using practical volume, which is 49,000 units. The actual results for the year are as follows: Units produced: 53,000 Direct materials purchased: 408,000 pounds at $1.32 per pound Direct materials used: 406,800 pounds Direct labor: 10,500 hours at $17.95 per hour Fixed overhead: $36,570 Variable overhead: $18,000 MPV=28,560 UNFAV MUV=21,500 FAV LRV=525 FAV LEV=45,900 UNFAV FIXED SPENDING VARIANCE= 7,170 UNFAV FIXED VOLUME VARIANCE= 2,400 FAV VARIABLE SPENDING= 150 UNFAV VARIABLE EFFICIENCY= 4,335 UNFAV Prepare journal entries for the following: The purchase of direct materials The issuance…
Zion Manufacturing had always made its components in-house. However, Bryce Component Works had recently offered to supply one component, K2, at a price of $25 each. Zion uses 10 000 units of Component K2 each year. The cost per unit of this component is as follows: 1 Direct materials Direct labour Variable overhead Fixed overhead Total Refer to the information for Zion Manufacturing. The fixed overhead is an allocated expense; none of it would be eliminated if production of Component K2 stopped. Required: 2 3 $12.00 8.25 4.50 2.00 $26.75 What are the alternatives facing Zion Manufacturing with respect to production of Component K2? List the relevant costs for each alternative. If Zion decides to purchase the component from Bryce, by how much will operating income increase or decrease? Which alternative is better?
Lazer Tag manufactures computer parts within a relevant range of 50,000 to 100,000 units per year. Complete the following manufacturing cost schedule (a through j) for Lazer Tag. Fill in the following chart. Parts Produced 50,000 100,000 TOTAL COSTS: Variable $75,000 ? Fixed 50,000 ? Total ? ? COSTS PER UNIT: Variable ? ? Fixed ? ? Total ? ?
[The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $140 and $100, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 106,000 units of each product. Its average cost per unit for each product at this level of activity is given below: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha Beta $ 32 $ 16 24 19 10 20 22 16 12 19 14 $ 121 $ 92 The company's traceable fixed manufacturing overhead is avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Assume Cane normally produces and sells 44,000 Betas per year. What is the financial dvantage (disadvantage) of discontinuing the Beta product line?
[The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: DirectLabor-Hoursper unit AnnualProduction Rims 0.40 18,000 units Posts 0.70 77,000 units Additional information about the company follows: Rims require $14 in direct materials per unit, and Posts require $11. The direct labor wage rate is $15 per hour. Rims are more complex to manufacture than Posts and they require special equipment. The ABC system has the following activity cost pools: Estimated Activity Activity Cost Pool Activity Measure EstimatedOverheadCost Rims Posts Total Machine setups Number of setups $ 30,030 120 80 200 Special processing Machine-hours $ 147,840 2,000 0 2,000 General factory Direct labor-hours $ 576,000 7,000 29,000 36,000 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2…
I need assistance with the Balance Sheet, Income Statements, and Schedule of Goods Manufactured. Please can you provide detailed information so I can see the structure.
Whiteside Corporation manufactures a variety of appliances which all use Part B89. Currently, Whiteside Corporation manufactures Part B89 itself. It has been producing 11,000 units of Part B89 annually. The annual costs of producing Part B89 at the level of 11,000 units include: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost Answers: $3.30 $8.50 All of the fixed manufacturing overhead costs would continue whether Part B89 is made internally or purchased from an outside supplier. Assume the company can purchase 11,000 units of the part from the Nadal Parts Company for $20.10 each, and the facilities currently used to make the part could be used to manufacture 11,000 units of another product that would have a $9 per unit contribution margin. If no additional fixed costs would be incurred, what should Whiteside Corporation do? Selected Answer: Make the new product and buy the part to earn an extra $8.30 per unit contribution to…
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 $1,800 and the total manufacturing overhead cost is $1,260, which includes $800 fixed manufacturing overhead cost. The company's total selling and administrative expenses are $2,800, 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) O a. 71 O b. 81 О с. None of the given answers O d. 41 О е. 55 AGE NEXT PAGE %3D ere to search
Sassy Company uses the product cost concept of applying the cost-plus approach to product pricing (this is the one we learned). Sassy Company desires a profit equal to a 15% rate of return on invested assets of $550,000. The costs and expenses of producing 35,000 units of Product H are as follows: (NOTE: This is the same fact pattern as the previous two questions) Fixed factory overhead cost $35,000 Fixed selling and administrative costs 16,500 Variable direct materials cost per unit 2.60 Variable direct labor cost per unit 4.30 Variable factory overhead cost per unit 1.30 Variable selling and administrative cost per unit 0.75 The markup percentage on total cost for the company's product is: O 23.2% 38.9% O not possible to calculate with the information provided O 29.8%