Product Cost Method of Product Costing MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,810 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $69 Factory overhead $201,900 Direct labor 31 Selling and administrative expenses 69,500 Factory overhead 25 Selling and administrative expenses 18 Total variable cost per unit $143 MyPhone desires a profit equal to a 16% rate of return on invested assets of $599,400. a. Determine the amount of desired profit from the production and sale of 4,810 cell phones. 95,904 b. Determine the product cost per unit for the production of 4,810 of cell phones. Round your answer to the nearest whole dollar. 167 V per unit C. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. 31.37 d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar. 167 V per unit Total Cost Markup 52.38 X per unit 24 194 X per unit Selling price Feeabao) Cheo My Work a. Multiply the desired profit percentage by the desired amount (invested assets). gation colu mplete table b. Divide the total manufacturing (variable and fixed) costs byY the number of units produced. Previous Next gation colume pair. Check My Work Submit Assignment for Grading %24 %24 %24 %24
Product Cost Method of Product Costing MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,810 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $69 Factory overhead $201,900 Direct labor 31 Selling and administrative expenses 69,500 Factory overhead 25 Selling and administrative expenses 18 Total variable cost per unit $143 MyPhone desires a profit equal to a 16% rate of return on invested assets of $599,400. a. Determine the amount of desired profit from the production and sale of 4,810 cell phones. 95,904 b. Determine the product cost per unit for the production of 4,810 of cell phones. Round your answer to the nearest whole dollar. 167 V per unit C. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. 31.37 d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar. 167 V per unit Total Cost Markup 52.38 X per unit 24 194 X per unit Selling price Feeabao) Cheo My Work a. Multiply the desired profit percentage by the desired amount (invested assets). gation colu mplete table b. Divide the total manufacturing (variable and fixed) costs byY the number of units produced. Previous Next gation colume pair. Check My Work Submit Assignment for Grading %24 %24 %24 %24
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Product Cost Method of Product Costing
MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling
4,810 cell phones are as follows:
Variable costs per unit:
Fixed costs:
Direct materials
$69
Factory overhead
$201,900
Direct labor
31
Selling and administrative expenses
69,500
Factory overhead
25
Selling and administrative expenses
18
Total variable cost per unit
$143
MyPhone desires a profit equal to a 16% rate of return on invested assets of $599,400.
a. Determine the amount of desired profit from the production and sale of 4,810 cell phones.
95,904
b. Determine the product cost per unit for the production of 4,810 of cell phones. Round your answer to the nearest whole dollar.
167 V per unit
C. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places.
31.37
d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar.
167
V per unit
Total Cost
Markup
52.38 X per unit
24
194
X per unit
Selling price
Feeabao)
Cheo My Work
a. Multiply the desired profit percentage by the desired amount (invested assets).
gation colu
mplete table
b. Divide the total manufacturing (variable and fixed) costs byY the number of units produced.
Previous
Next
gation colume
pair.
Check My Work
Submit Assignment for Grading
%24
%24
%24
%24
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