Gower Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2016 Account Direct materials Direct manufacturing labor Power Supervision labor Materials-handling labor Maintenance labor Depreciation Classification All variable All variable All variable 20% variable 50% variable 40% variable 0% variable Amount (in $) 300 000 225 000 0% variable 37 500 56 250 60 000 75 000 95 000 Rent, property, taxes and administration Gower Inc. produced 75 000 units in 2016. Selling price-$20 per unit sold. Required: 1. Prepare a schedule of variable, fixed and total manufacturing costs for each category in 2016. Estimate total manufacturing costs and total manufacturing costs per unit ( 2. Calculate the break-even point in unit sales tis); 3. Calculate the quantity that needs to be sold to achieve a target operating income of $25 000 C+ 100 000
Gower Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2016 Account Direct materials Direct manufacturing labor Power Supervision labor Materials-handling labor Maintenance labor Depreciation Classification All variable All variable All variable 20% variable 50% variable 40% variable 0% variable Amount (in $) 300 000 225 000 0% variable 37 500 56 250 60 000 75 000 95 000 Rent, property, taxes and administration Gower Inc. produced 75 000 units in 2016. Selling price-$20 per unit sold. Required: 1. Prepare a schedule of variable, fixed and total manufacturing costs for each category in 2016. Estimate total manufacturing costs and total manufacturing costs per unit ( 2. Calculate the break-even point in unit sales tis); 3. Calculate the quantity that needs to be sold to achieve a target operating income of $25 000 C+ 100 000
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Account
Direct materials
Direct manufacturing labor
Power
Gower Inc., a manufacturer of plastic products, reports the following manufacturing costs and account
analysis classification for the year ended December 31, 2016:
Supervision labor
Materials-handling labor
Maintenance labor
solution path and answer to each of the questions given below. Support
s and explanations to achieve the highest score
Depreciation
nated answer shects? Use answer sheets only to post your answers! Do
corresponding question you give the answer to
Classification
All variable
All variable
All variable
20% variable
50% variable
40% variable
0% variable
Amount (in $)
300 000
225 000
0% variable
37 500
56 250
60 000
75 000
95 000
Rent, property, taxes and administration
Gower Inc. produced 75 000 units in 2016. Selling price - $20 per unit sold.
Required:
1. Prepare a schedule of variable, fixed and total manufacturing costs for each category in 2016.
Estimate total manufacturing costs and total manufacturing costs per unit (
2. Calculate the break-even point in unit sales is);
3. Calculate the quantity that needs to be sold to achieve a target operating income of $25 000 (5
100 000
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