Munoz Manufacturing Company expects to make 30,100 chairs during the Year 1 accounting period. The company made 4,400 chairs in January. Materials and labor costs for January were $16,700 and $25,100, respectively. Munoz produced 1,600 chairs in February. Material and labor costs for February were $8,000 and $12,300, respectively. The company paid the $571,900 annual rental fee on its manufacturing facility on January 1, Year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year. Required Assuming that Munoz desires to sell its chairs for cost plus 20 percent of cost, what price should be charged for the chairs produced in January and February? Note: Round intermediate calculations and final answers to 2 decimal places. Price per unit January 14.14 $ February 38.81
Munoz Manufacturing Company expects to make 30,100 chairs during the Year 1 accounting period. The company made 4,400 chairs in January. Materials and labor costs for January were $16,700 and $25,100, respectively. Munoz produced 1,600 chairs in February. Material and labor costs for February were $8,000 and $12,300, respectively. The company paid the $571,900 annual rental fee on its manufacturing facility on January 1, Year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year. Required Assuming that Munoz desires to sell its chairs for cost plus 20 percent of cost, what price should be charged for the chairs produced in January and February? Note: Round intermediate calculations and final answers to 2 decimal places. Price per unit January 14.14 $ February 38.81
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 6P: RDI Products Co. manufactures a variety of products made of plastic and aluminum components. During...
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![Munoz Manufacturing Company expects to make 30,100 chairs during the Year 1 accounting period. The company made 4,400 chairs
in January. Materials and labor costs for January were $16,700 and $25,100, respectively. Munoz produced 1,600 chairs in February.
Material and labor costs for February were $8,000 and $12,300, respectively. The company paid the $571,900 annual rental fee on its
manufacturing facility on January 1, Year 1. The rental fee is allocated based on the total estimated number of units to be produced
during the year.
Required
Assuming that Munoz desires to sell its chairs for cost plus 20 percent of cost, what price should be charged for the chairs produced in
January and February?
Note: Round intermediate calculations and final answers to 2 decimal places.
Price per unit
January
14.14
$
February
38.81](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F95a360ae-c63e-4547-a6bd-b4bb0615cc7d%2F1c060af4-66f6-4eb6-b812-48445fef986c%2F6o9bics_processed.png&w=3840&q=75)
Transcribed Image Text:Munoz Manufacturing Company expects to make 30,100 chairs during the Year 1 accounting period. The company made 4,400 chairs
in January. Materials and labor costs for January were $16,700 and $25,100, respectively. Munoz produced 1,600 chairs in February.
Material and labor costs for February were $8,000 and $12,300, respectively. The company paid the $571,900 annual rental fee on its
manufacturing facility on January 1, Year 1. The rental fee is allocated based on the total estimated number of units to be produced
during the year.
Required
Assuming that Munoz desires to sell its chairs for cost plus 20 percent of cost, what price should be charged for the chairs produced in
January and February?
Note: Round intermediate calculations and final answers to 2 decimal places.
Price per unit
January
14.14
$
February
38.81
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