Product Cost Method of Product CostingVoice Com, Inc. uses the product cost method of applying the cost-plus approach toproduct pricing. The costs of producing and selling 4,580 cell phones are as follows:Variable costs per unit:Fixed costs:Direct materials$79Factory overhead$201,200Direct labor31Selling and administrative expenses68,500Factory overhead24Selling and administrative expenses19Total variable cost per unit$153Voice Com desires a profit equal to a 16% rate of return on invested assets of$601,800.a. Determine the amount of desired profit from the production and sale of 4,580cell phones.b. Determine the product cost per unit for the production of 4,580 of cell phones.Round your answer to the nearest whole dollar.per unitc. Determine the product cost markup percentage for cell phones. Round youranswer to two decimal places.d. Determine the selling price of cell phones. Round your answers to the nearestwhole dollar.Total Costper unitMarkupper unitSelling priceper unit

Calculate the amount of desired profit as a product of Amount of Invested Assets (in $) and Rate of…

Answered: Product Cost Method of Product Costing…

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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Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit): Product B $ 62.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A $80.00 Required 1 Required 2 24.00 24.00 48.00 $ 32.00 Required 3 40% 18.00 25.40 43.40 $ 18.60 30% с $81.00 The company estimates it can sell 800 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,000 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin the company can earn per month if it makes optimal use of its 5,000 pounds of materials? Contribution margin per pound of the constraining resource 9.00 43.65…
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 5,000 cell phones are as follows: Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit Fixed costs: Factory overhead $200,800 Selling and administrative expenses 69,000 MyPhone desires a profit equal to a 14% return on invested assets of $601,400. a. Determine the amount of desired profit from the production and sale of 5,000 cell phones. $70 34 25 21 $150 b. Determine the product cost per unit for the production of 5,000 cell phones. Round your answer to the nearest whole dollar. per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. % d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar. Total Cost Markup Selling price per unit per…
Al Ziyabi Company, a leading textile manufacturer is required to prepare a cost-volume-profit analysis report for the two products being produced in its company. Product A Price per unit (RO) Particulars Sales price Material Direct wages Variable expenses Fixed expenses 17 8 100% of direct wages RO 1100 The following scenarios are predicted by the Management: Scenario 1: 200 units of product A and 100 units of product B Scenario 2: 150 units of product A and 150 units of product B Scenario 3: 250 units of product A and 50 units of product B Product B Price per unit (RO) 4 100% of direct wages RO 1100 Ï
Calico Joe Fabrics sells a single product. The company estimates total fixed costs at $360,000 with demand, price, and total variable costs as follows: Units Demanded 73,000 83,000 93,000 103,000 113,000 Unit Price $31 O $28 O $27 O $30 $29 $31 30 29 28 27 Total Variable Costs $1,606,000 1,826,000 2,046,000 2,266,000 2,486,000 What price should Calico Joe Fabrics charge to maximize profits?
Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product B $ 62.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A $ 80.00 24.00 24.00 48.00 $ 32.00 Required 1 Required 2 40% Required 3 18.00 25.40 43.40 $18.60 30% с $81.00 The company estimates that it can sell 800 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,000 pounds available each month. 9.00 43.65 52.65 $28.35 Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,000 pounds of materials? 35% Complete this question by…
Subject: acounting
Smart Stream Inc. uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 8,000 units of cellular phones are as follows: Variable costs: Fixed costs: Direct materials $ 87 per unit Factory overhead $349,300 Direct labor 40 Selling and admin. exp. 122,700 Factory overhead 26 Selling and admin. exp. 21
Bruno Company accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost January 8,015 February 7,510 $14,195 13,515 Miles Driven Total Cost March 8,500 $15,000 April 8,205 14,495 a. Compute the variable cost per mile using the high-low method. b. Compute the fixed cost elements using the high-low method.
Kesterson Corporation has provided the following information: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Multiple Choice ( $15.15 Variable administrative expense Fixed selling and administrative expense The incremental manufacturing cost that the company will incur if it increases production from 10,000 to 10,001 units is closest to: $16.45 Cost per Unit $6.70 $ 3.30 $ 1.65 $13.95 $ 1.20 $ 0.80 Cost per Period $ 23,000 $ 5,000 Hel
Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product B $ 70.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A $ 84.00 25.20 25.20 50.40 $ 33.60 40% Required 1 Required 2 Required 3 21.00 31.50 52.50 $ 17.50 25% с $ 74.00 The company estimates that it can sell 750 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,400 pounds available each month. Contribution margin per pound of the constraining resource Product C

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